May 29, 2018, Introduced by Reps. Webber, Bellino, Iden, McCready and Kahle and referred to the Committee on Tax Policy.
A bill to amend 1937 PA 94, entitled
"Use tax act,"
(MCL 205.91 to 205.111) by adding section 4ff.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 4ff. (1) Beginning January 1, 2019, a person subject to
the tax under this act may exclude from the purchase price used for
the computation of the tax on the storage, use, or consumption of a
new alternative energy vehicle or a motor vehicle powered by motor
fuel that has been converted to an alternative energy vehicle the
following amount determined based on the following schedule of
empty weights of the alternative energy vehicle:
(a) Up to 6,000 pounds, $1,000.00.
(b) 6,001 to 16,000 pounds, $2,500.00.
(c) 16,001 to 26,000 pounds, $5,000.00.
(d) Over 26,000 pounds, $7,500.00.
(2) The exclusion allowed under this section also applies to a
new alternative energy vehicle purchased for lease if the term of
the lease is at least 2 years.
(3) As used in this section:
(a) "Alternative energy vehicle" means a motor vehicle
manufactured by an original equipment manufacturer that fully
warrants and certifies that the motor vehicle meets federal motor
vehicle safety standards for its class of vehicles as defined by
the Michigan vehicle code, 1949 PA 300, MCL 257.1 to 257.923, and
certifies that the motor vehicle meets local emissions standards,
that is propelled by an alternative energy system. Alternative
energy vehicle includes the following:
(i) An alternative fueled vehicle. As used in this
subparagraph, "alternative fueled vehicle" means a motor vehicle
that can only be powered by a clean fuel energy system and can only
be fueled by a clean fuel.
(ii) A fuel cell vehicle. As used in this subparagraph, "fuel
cell vehicle" means a motor vehicle powered solely by a fuel cell
energy system.
(iii) An electric vehicle. As used in this subparagraph,
"electric vehicle" means a motor vehicle powered solely by a
battery cell energy system.
(iv) A hybrid vehicle. As used in this subparagraph, "hybrid
vehicle" means a motor vehicle that can only be powered by an
internal combustion engine and 1 or more alternative energy
systems.
(v) A solar vehicle. As used in this subparagraph, "solar
vehicle" means a motor vehicle powered solely by a photovoltaic
energy system.
(vi) A hybrid electric vehicle. As used in this subparagraph,
"hybrid electric vehicle" means a motor vehicle powered by an
integrated propulsion system consisting of an electric motor and
combustion engine. Hybrid electric vehicle does not include a
retrofitted conventional diesel or gasoline engine. A hybrid
electric vehicle obtains the power necessary to propel the motor
vehicle from a combustion engine and 1 of the following:
(A) A battery cell energy system.
(B) A fuel cell energy system.
(C) A photovoltaic energy system.
(b) "Motor fuel" means that term as defined in section 3 of
the streamlined sales and use tax revenue equalization act, 2004 PA
175, MCL 205.173.
(c) "New alternative energy vehicle" means an alternative
energy vehicle which is not and has not been a demonstrator,
executive or manufacturer's vehicle, leased vehicle, or a used or
secondhand vehicle.