HB 4016 was introduced by Rep. Paul Opsommer (R – Dewitt) on January 22, 2009. It has been referred to the House Committee on Energy and Technology.
A recently introduced House bill could potentially provide a tax credit to reimburse the entire cost of implementing carbon dioxide sequestration systems in Michigan.
According to the bill a taxpayer would be able to claim a credit against the Michigan Business Tax equal to the cost of purchasing, leasing, or constructing the machinery, equipment, or pipeline infrastructure designed to capture carbon dioxide. The bill would also create a credit for the cost of materials used in preparing, maintaining, or capping a carbon dioxide injection well. All credits under the bill could only be claimed during the tax year in which these costs were incurred. (read more...)
The bill defines a carbon dioxide injection well as a well used for the injection of carbon dioxide into geologic formations for permanent storage, or a well in which carbon dioxide is injected for the purpose of enhancing the recovery of oil, natural gas, or other hydrocarbon.
If the amount of the credit exceeds 50 percent of the tax liability of the taxpayer for the fiscal year, then the portion which exceeds the 50 percent would not be refunded but could be carried forward to the next tax year. This carry over process can only be done once.
Carbon dioxide sequestration is a process by which carbon dioxide emissions are captured at their point of creation and transported to a storage location for long-term isolation from the atmosphere. These emissions are almost exclusively stored in underground geological formations like depleted oil and gas reservoirs or saline formations.
This technology is seen as having the potential to become part of a larger strategy to reduce greenhouse gas emissions.
Learn more about carbon sequestration: EPA overview of geologic carbon sequestration
Read the bill in its entirety: HB 4016