Corporate income tax: credits; credit for certain construction and renovation projects that receive LEED certification; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 677.
Impact
The potential impact of HB 5186 on state laws includes a formal recognition of green building practices through financial incentives, which could accelerate the adoption of environmentally sound construction methods. The bill establishes a framework for taxpayers to receive credits that can collectively reach up to $30 million annually. This cap on credits suggests a controlled approach towards incentivizing green building efforts while ensuring fiscal responsibility within the state's tax budget. The eligible projects primarily encompass commercial and multi-family residential buildings, encouraging broader participation across various sectors.
Summary
House Bill 5186 aims to amend the Income Tax Act of 1967 by introducing tax credits for certain construction or renovation projects that achieve specified levels of LEED certification. The bill provides for credits of 3% for Silver, 5% for Gold, and 7% for Platinum LEED certified projects, targeting improvements in energy efficiency and environmental sustainability within the construction sector. The legislation is set to take effect for tax years beginning on or after January 1, 2024, allowing taxpayers to offset their tax liabilities based on the allowable costs incurred in these eligible projects.
Contention
Notable points of contention surrounding HB 5186 may arise from the allocation of state funds and the prioritization of tax credits. Critics might question the effectiveness of these credits in genuinely promoting long-term environmental sustainability versus merely providing financial relief to businesses. Moreover, there may be concerns about the criteria for 'allowable costs' and the administrative burden placed on the tax commission to evaluate and certify these projects. The bill's reliance on LEED certification specifically could also lead to debates about fairness and access for smaller developers who may lack the resources to pursue such green certifications.
Corporate income tax: credits; research and development credit for certain employers; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 677 & repeals sec. 716 of 1967 PA 281 (MCL 206.716).
Corporate income tax: credits; aerospace and defense technology related research and development credit; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding secs. 277 & 677.
Corporate income tax: credits; annual report on research and development tax credits; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 718.
Corporate income tax: credits; aerospace and defense technology related research and development credit; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding secs. 277 & 677. TIE BAR WITH: SB 1018'24
Corporate income tax: credits; employer credit for paid organ donation leave; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding secs. 279 & 679.
Corporate income tax: credits; employer credit for paid organ donation leave; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding secs. 279 & 679.
Corporate income tax: credits; definitions for research and development tax credits; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 716.
Corporate income tax: credits; distributor credit for returnable containers; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding secs. 279 & 679.