HOUSE BILL NO. 4787

A bill to amend 1893 PA 206, entitled

"The general property tax act,"

(MCL 211.1 to 211.155) by adding section 7yy.

the people of the state of michigan enact:

Sec. 7yy. (1) Subject to subsection (2), for taxes levied after December 31, 2025, qualified replacement electric distribution infrastructure is exempt from the collection of taxes under this act. Qualified replacement electric distribution infrastructure exempt under this section is subject to the specific tax levied under the replacement electric distribution infrastructure specific tax act.

(2) To obtain the exemption described in subsection (1), the owner of the qualified replacement electric distribution infrastructure must submit an application for the exemption to the local assessing unit in which the property is located, by not later than March 1 of each year, in a form and manner prescribed by the department of treasury. Not more than 60 days after receiving a complete and properly filed application, the local assessing unit, in coordination with the department of treasury, shall determine if the property for which the exemption is claimed is qualified replacement electric distribution infrastructure and, if the property is qualified replacement electric distribution infrastructure, shall grant the exemption.

(3) An owner of qualified replacement electric distribution infrastructure exempt under this section shall submit an annual written report not later than March 31 of each year that the property is subject to exemption to the Michigan public service commission, or the board of directors of the cooperative electric utility in which the owner's business is a member, and the local tax collecting unit. The report must include all of the following information:

(a) The location and a description of the replaced depreciated electric distribution infrastructure and the exempt qualified replacement electric distribution infrastructure.

(b) The age and condition of the depreciated electric distribution infrastructure when it was replaced by the exempt qualified replacement electric distribution infrastructure.

(c) Estimated reliability improvements and safety enhancements resulting from the replacement of the depreciated electric distribution infrastructure with the exempt qualified replacement electric distribution infrastructure.

(4) As used in this section:

(a) "Cooperative electric utility", "qualified replacement electric distribution infrastructure", and "specific tax" mean those terms as defined in the replacement electric distribution infrastructure specific tax act.

(b) "Depreciated electric distribution infrastructure" means that term as used in the replacement electric distribution infrastructure specific tax act.

Enacting section 1. This amendatory act does not take effect unless House Bill No. 4788 (request no. H02451'25 a) of the 103rd Legislature is enacted into law.