Legislative Analysis
Phone: (517) 373-8080
BIODIESEL TAX CREDITS
http://www.house.mi.gov/hfa
House Bill 4847 as introduced Analysis available at
Sponsor: Rep. John Fitzgerald http://www.legislature.mi.gov
Committee: Tax Policy
Complete to 5-14-24
SUMMARY:
House Bill 4847 would amend the Income Tax Act to create refundable individual income tax
and corporate income tax credits for the production and sale of certain alternative fuels. The
bill would establish identical guidelines for both the individual and corporate income tax
credits.
Retail Dealer Credits
The bill would allow taxpayers that are retailer dealers to claim an individual tax credit for the
2024 through 2029 tax years equal to the sum of the following:
• $0.02 per gallon of B5+ fuel sold by the dealer through metered pumps at their motor
fuel site during the tax year.
• $0.05 per gallon of B11+ fuel sold by the dealer through metered pumps at their motor
fuel site during the tax year.
B5+ fuel would mean a biodiesel blend containing at least 5%, but not more than 10%,
biodiesel that meets the American Section of the International Association for Testing
Materials (ASTM) international standard D975 or D7467, whichever is applicable.
B11+ fuel would mean a biodiesel blend containing more than 10% biodiesel that
meets the ASTM international standard D7467.
Biodiesel blend would mean a blended motor fuel composed of a blend of biodiesel
fuel with petroleum-based diesel fuel, suitable for use as a fuel in a compression-
ignition internal combustion diesel engine.
Biodiesel would mean a diesel fuel substitute consisting of methyl or ethyl esters
produced from the transesterification of animal or vegetable fats with methanol or
ethanol, that meets the ASTM international standard D6751.
The total amount of credits available for both the individual and corporate income tax credits
could not exceed $16.0 million per tax year. If credits exceeding this amount were claimed,
they would be adjusted for each taxpayer on a prorated basis.
Biodiesel Producer Credits
In addition, for the same tax years, taxpayers that are biodiesel producers would be able to
claim a credit equal to $0.02 per gallon of biodiesel produced in Michigan during the tax year.
House Fiscal Agency Page 1 of 2
 The total amount of credits available for both the individual and corporate income tax credits
could not exceed $2.0 million per tax year. If credits exceeding this amount were claimed, they
would be adjusted for each taxpayer on a prorated basis.
Proposed MCL 206.277a and 206.677a
FISCAL IMPACT:
Based on current estimates of production capacity in the state, the producer credit would reduce
general fund revenues by approximately $300,000 to $400,000. As capacity grew, this impact
would grow proportionately until it reached the statutory cap of $2.0 million annually. The
retailer credit currently would reduce general fund revenues by approximately $1.0 to $2.0
million based on current estimates of gallons used. Like the producer credit, this impact would
grow as the market for biodiesel grows, but the impact could not exceed the statutory cap of
$16.0 million.
Legislative Analyst: Alex Stegbauer
Fiscal Analyst: Ben Gielczyk
■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their
deliberations and does not constitute an official statement of legislative intent.
House Fiscal Agency HB 4847 as introduced Page 2 of 2


Statutes affected:
House Introduced Bill: 206.1, 206.847