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Combined Heat and Power Partnership

Refundable Payroll Tax Credit

dCHPP Glossary (PDF) (2 pp, 53K)

Date Last Updated11/16/2012
Incentive TypeTax
State/FederalMI
Incentive Administrator/Contact OfficeMichigan Department of Treasury
Incentive Initiation Date10/17/2002
Incentive Size and Funding SourceBusinesses in Michigan may be eligible to claim a tax credit equal to their qualified payroll amount multiplied by their income tax rate for that year. If the credit exceeds the tax liability of the business for the tax year, the portion of the credit exceeding the tax liability will be refunded.
Eligible RecipientBusinesses certified by the NextEnergy Authority that locate in the NextEnergy Zone to research, develop or manufacture alternative energy technologies. In order for an employee's compensation to qualify for this treatment, the employee must work on alternative energy-related research, development or manufacturing and have a regular place of employment within the NextEnergy Zone.
Eligible FuelDoes Not Specify
Eligible Project Size (MW)Does Not Specify
Minimum Efficiency Required (%)Does Not Specify
Other Selected Eligibility CriteriaEligible alternative energy technologies include: fuel cells, PV, biomass, solar thermal heating and cooling, wind energy, CHP, microturbines, miniturbines, Stirling engines, electricity storage systems and clean fuel energy systems powered by methane, natural gas, methanol, ethanol or hydrogen.
Other Incentive DetailsThe Michigan Strategic Fund designated the NextEnergy Zone a Renaissance Zone in 2002. Public Act 38 of 2011 repealed the Michigan Business Tax (MBT) and implemented the Corporate Income Tax (CIT). Public Act 39 was passed in conjunction with the CIT and allows for certain credits awarded under the MBT to be retained for the duration of the agreements. Businesses receiving certain credits, including Renaissance Zone credits, may choose to either continue to file under the MBT to continue claiming their credits, or file under the CIT. No additional Renaissance Zone credits will be awarded after 2011.
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