October 25, 2007, Introduced by Reps. Constan, Vagnozzi, Johnson, Donigan, Young, Scott, Gonzales, Spade, Valentine, Lahti, Polidori, Brown, Clemente, Simpson, Gaffney, Ball, Amos, Accavitti, Leland and Robert Jones and referred to the Committee on Energy and Technology.
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
(MCL 206.1 to 206.532) by adding section 273.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 273. (1) For tax years that begin after December 31,
2006, a taxpayer who owns residential rental property and conducts
an eligible project for which the taxpayer has a preapproval letter
from the department on that residential rental property may claim a
credit against the tax imposed by this act equal to 35% of the cost
of materials and labor for that eligible project as provided in
this section.
(2) A taxpayer shall apply to the department for approval of
an eligible project under this section. If the department approves
an eligible project under this section, the department shall issue
a preapproval letter that states all of the following:
(a) The eligible project qualifies for the credit under this
section.
(b) The maximum total credit that may be claimed for the
eligible project when the eligible project is completed.
(3) An eligible project shall be approved or denied not more
than 45 days after receipt of the application. If the department
does not approve or deny an application within 45 days after the
application is received by the department, the application is
considered approved as written.
(4) If an eligible project is denied under this section, a
taxpayer is not prohibited from subsequently applying under this
section for the same project or for another project.
(5) The credit under this section shall be not claimed until
the tax year in which the eligible project is completed. The credit
amount shall be divided into 5 equal amounts, and 1/5 of the total
credit amount shall be claimed in each of the 5 consecutive years
beginning with the year in which the eligible project is completed.
(6) In the first year that a credit under this section is
claimed, the taxpayer shall attach to the taxpayer's annual return
required under this act an affidavit asserting that the eligible
project is complete.
(7) As used in this section:
(a) "Eligible project" means any of the following related to
residential rental property owned by the taxpayer:
(i) Insulation of ceilings, walls, floors, or ducts.
(ii) Air sealing.
(iii) Replacement or improvement of heating equipment or of the
efficiency of heating equipment.
(iv) Replacement or addition of storm windows or storm doors.
(b) "Residential rental property" means that portion of real
property not occupied by an owner of that real property that is
classified as residential real property under section 34c of the
general property tax act, 1893 PA 206, MCL 211.34c, is a multiple-
unit dwelling, or is a dwelling unit in a multiple purpose
structure, used for residential purposes.