September 8, 2005, Introduced by Reps. McDowell, Espinoza, Mayes, Kehrl, Spade, Gillard, Bennett, Byrnes, Angerer, Byrum, Farrah, Tobocman, Alma Smith, Gleason, Bieda, Waters, Brown, Adamini, Gonzales, Zelenko, Sak, Donigan, Vagnozzi, Polidori, Leland, Kathleen Law, Plakas, Sheltrown and Dillon and referred to the Committee on Tax Policy.
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
(MCL 206.1 to 206.532) by adding section 275.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 275. (1) Except as provided in subsection (2) and for tax
years that begin after December 31, 2005 and before January 1,
2011, the following taxpayers may claim a credit against the tax
imposed under this act equal to the following amounts:
(a) A taxpayer that is a retail dealer that engages in the
transfer, sale, dispensing, or offering for sale of gasoline in
this state licensed by the department of agriculture under the
motor fuels quality act, 1984 PA 44, MCL 290.641 to 290.650d, may
claim a credit equal to the sum of the following related to the
sale of qualified fuels:
(i) The cost paid in the tax year for equipment that is
dedicated to the dispensing of qualified fuels.
(ii) Special maintenance and labor costs paid in the tax year
that are associated with the equipment under subparagraph (i).
(b) A taxpayer that is a blender may claim a credit equal to
the cost paid in the tax year for equipment that is dedicated to
the blending of qualified fuels.
(2) If the credit allowed under this section for the tax year
and any unused carryforward of the credit allowed under this
section exceed the tax liability of the taxpayer for the tax year,
the excess shall not be refunded, but may be carried forward as an
offset to the tax liability in subsequent tax years for 10 tax
years or until the excess credit is used up, whichever occurs
first.
(3) As used in this section:
(a) "Biodiesel fuel" means a diesel fuel that consists of
mono-alkyl esters of long chain fatty acids derived from vegetable
oils or animal fats designated B100 and that meets the standards
under D-6751 of the American society for testing and materials.
(b) "Blender" means that term as defined in section 2 of the
motor fuels quality act, 1984 PA 44, MCL 290.642.
(c) "Qualified fuel" means all of the following:
(i) Biodiesel fuel or biodiesel fuel blends designated B2 or
higher. The number following the B represents the percentage of
biodiesel fuel by volume in the blend.
(ii) For a taxpayer that is a retail dealer, ethanol or ethanol
blends containing between 11% and 85% denatured fuel ethanol by
volume in the blend. The denatured fuel ethanol must meet the
standards under D-4806 of the American society for testing and
materials.
(iii) For a taxpayer that is a blender, ethanol or ethanol
blends containing 10% or higher denatured fuel ethanol by volume in
the blend. The denatured fuel ethanol must meet the standards under
D-4806 of the American society for testing and materials.