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DETROIT -- A new bill signed into law Dec. 30, 2008, gives more incentives to fuel retailers in Michigan to provide alternative fuels to their customers, as the legislation will provide a tax credit of up to 30 percent to retailers who install or upgrade existing fuel pumps to dispense E85 or biodiesel fuel, according to a report by MichiganPolicy.com
The credit applies to the total costs of installing or upgrading the pump, with a cap placed at $20,000 per taxpayer per year. The tax credit will be available from Jan. 1, 2009, until Dec. 31, 2012. To receive the credit, gas station owners must first receive a certificate of approval from the Energy Office of Michigan, according to the report.
In addition, there is a $1 million cap placed on the amount of tax credits that can be given out during one year.
However, if a station were to receive the credit, then terminate usage of the pump within three years, the full amount of the tax credit could be added onto its taxes for that year, the report stated.