Michigan Policy Network - Sales tax, use tax could be dropped when purchasing energy conservation products

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Elimination of sales...

Two bills introduced in January would eliminate the sales tax and use tax on the purchase of energy conservation products.

Large tax incentives for carbon sequestration?

A recent bill introduced in the House would create a large tax break for implementing a carbon sequestration system.

Major tax incentives for renewable energy proposed

A proposed House bill would provide major tax incentives for homeowners to install renewable energy systems.

$20,000 tax credits for alternative fuel pumps

Gas station owners can receive up to $20,000 in tax credits towards installing alternative fuel pumps at their stations.

Laundry and dish was...

Two bills that passed on the last day of the 94th Legislature will require that laundry and dish washing detergents designed for home use not contain more than 0.5% phosphorus.

A proposed bill would require that the large utility companies enter into contracts with all eligible renewable energy projects. The contracts would last at least 20 years and guarantee a "reasonable profit" for the electricity produced.

Single website will ...

The Department of Agriculture will be required to put together a website which shows in a concise and readable fashion the procedural steps that would need to be taken to build an alternative fuel production plant in Michigan.

Renewable energy ren...

The amount of renewable energy renaissance zones will be increased from 10 to 15. At least five of these zones must be designated for the production of cellulosic biofuels.

SB 1048 passes, crea...

This bill creates a tax incentive program for residential improvements that would increase a home's energy efficiency.

SB 1585 introduced, ...

This bill would allow the Department of Treasury to hand out grants for renewable energy research. Funding would come from DNR contracts for oil and natural gas exploration on state land.

Sales tax, use tax could be dropped when purchasing energy conservation products

Tuesday, 24 February 2009 08:11

HB 4068 and HB 4069 were both introduced by Rep. Tory Rocca (R – Sterling Heights) on January 22, 2009. Both bills have been referred to the House Committee on Energy and Technology.

Two bills introduced in late January in the House would look to eliminate the sales tax and use tax from the purchase of products used to increase energy conservation. HB 4068 would eliminate the use tax on these products, while HB 4069 would do away with the sales tax. (read more...)

Both bills specify that their respective taxes would not apply to the purchase of energy conservation products that are to be affixed to, installed in, or made a structural part of a building.

Unclear at this time is what would be defined as an energy conservation product. Items such as insulation, storm windows and doors, and weather stripping are specifically named within the bills; however they do not represent all products that could potentially be affected.

Energy conservation is seen as both a means to decrease greenhouse gas emissions by reducing the amount of electricity needed to be created by power plants, and as a means for consumers to save money on utility fees. The U.S. Department of Energy reported in October 2008 (PDF) that the average American family spends $1,900 per year on utility bills.

For tips on saving energy and money at home, check out the energy efficiency and renewable energy section of the DOE’s website.

Read the bills in their entirety: HB 4068 and HB 4069

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