Bill > HB4722

This bill amends Michigan's Income Tax Act to create tax credits for biodiesel production and sales between 2025 and 2030, incentivizing the use of alternative fuel. Retail dealers can claim credits ranging from $0.02 to $0.07 per gallon of biodiesel blend sold, depending on the percentage of biodiesel (from 6% to 20%) dispensed through metered pumps. Biodiesel producers in Michigan can claim a $0.02 credit per gallon produced, with a total annual credit cap of $2 million. The bill also includes a broader $16 million annual cap on retail dealer credits, and if credits exceed a taxpayer's tax liability, the excess will be refunded. If total credits claimed exceed the caps, credits will be proportionally distributed among claimants. The bill provides detailed definitions for terms like "biodiesel," "biodiesel blend," and "motor fuel site," and allows members of flow-through business entities to claim credits based on their business income share. The bill's implementation is contingent upon the passage of a related House Bill, suggesting it is part of a broader legislative package to promote alternative fuel usage.

Transportation and Infrastructure

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-4722