Bill Text: MI HB4016 | 2009-2010 | 95th Legislature | Introduced
Bill Title: Michigan business tax; credit; credit for certain costs incurred during carbon dioxide sequestration and capture; provide for. Amends 2007 PA 36 (MCL 208.1101 - 208.1601) by adding sec. 461.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2009-01-27 - Printed Bill Filed 01/23/2009 [HB4016 Detail]
Download: Michigan-2009-HB4016-Introduced.html
HOUSE BILL No. 4016
January 22, 2009, Introduced by Rep. Opsommer and referred to the Committee on Energy and Technology.
A bill to amend 2007 PA 36, entitled
"Michigan business tax act,"
(MCL 208.1101 to 208.1601) by adding section 461.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 461. (1) A taxpayer may claim a credit against the tax
imposed by this act equal to the cost of purchasing, leasing, or
constructing carbon dioxide capture machinery, equipment, or
pipeline infrastructure and the cost of materials used in
preparing, maintaining, or capping a carbon dioxide injection well
incurred during the tax year for which the credit under this
section is claimed.
(2) A taxpayer that claims the credit under this section shall
verify on a form as provided by the department or in a format as
prescribed by the department that the actual expenses incurred for
purchasing, leasing, or constructing carbon dioxide capture
machinery, equipment, or pipeline infrastructure and preparing,
maintaining, or capping a carbon dioxide injection well are the
same costs claimed and used to calculate the credit under this
section. The taxpayer shall attach the verification to its annual
return under this act for the tax year in which the credit under
this section is claimed.
(3) If the amount of the credit allowed under this section and
any unused carryforward of the credit allowed by this section
exceeds more than 50% of the tax liability of the taxpayer for the
tax year, that portion of the credit that exceeds the tax liability
by more than 50% shall not be refunded but may be carried forward
for 1 year only to offset tax liability in the next tax year.
(4) As used in this section:
(a) "Carbon dioxide capture machinery, equipment, or pipeline
infrastructure" means a carbon dioxide injection well and any other
machinery, equipment, or pipeline infrastructure used to capture,
store, or transport carbon dioxide captured from electric power
generation or from industrial and other anthropogenic sources for
the purpose of carbon sequestration with or without enhanced oil,
gas, or other hydrocarbon recovery.
(b) "Carbon dioxide injection well" means a well used for
injection of carbon dioxide into geologic formations for permanent
storage or a well regulated under part 615 of the natural resources
and environmental protection act, 1994 PA 451, MCL 324.61501 to
324.61527, in which carbon dioxide is injected for the purpose of
enhancing the recovery of oil, gas, or other hydrocarbon.
