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3828, Page 5
Part 5: Equipment and Cost Details Line 41: Total Cost of Process Change. Enter the total cost of
Provide a description of the equipment associated with the air the process change, not including costs of air pollution control
pollution control that is claimed to be exempt. Provide one set devices listed in TE-EQUIPMENT.
of plans and provide an itemized list of equipment and costs. Line 42: Portion Claiming Tax Exempt. A standard 25% of costs
Consider incremental costs when providing the value to be associated with process changes is tax exempt. Enter the portion
considered for tax exemption. If a building is constructed solely of the total cost for which you are claiming a tax exemption. (See
for the purpose of protecting an air pollution control device, the example 2)
entire cost of the building may be tax exempt. If, however, the Line 45: Value of Recovered Product. Enter the gross commercial
size of the building is increased to allow for additional warehouse or productive value derived from any materials captured or
space, the entire cost of the building would not be tax exempt. recovered by the air pollution control equipment, calculated
(See Example 1) on a yearly basis. Include any financial benefit from increased
Line 25: Value of Recovered Product. Enter the gross commercial production capabilities as a result of a change in the process. This
or productive value derived from any materials captured or is required per Sec. 5902(2).
recovered by the air pollution control equipment calculated on a
yearly basis. This is required per Sec. 5902(2).
TE-PROCESS
The TE-PROCESS provides detailed cost information about a
Example 1
process change that has contributed to an improvement in air
A building is constructed to protect an air
emission. A tax exemption of up to 25% is awarded for eligible
pollutioncontrol device and serve as a warehouse.
equipment. If a tax exemption is being sought for equipment
To calculate the tax exempt portion, the applicant
from multiple emission units, complete a separate form for
must determine the total cost of the building, less
each emission unit. If additional space is required to complete
the cost of the portion of the building serving as a
an answer, attach additional pages. A separate page should
warehouse.
be attached for each additional explanation. Each page must
be identified as TE-Equipment or TE-Process along with the Total Cost of Building $100,000
corresponding Emission Unit name from box 14. Applications Less Cost of Warehouse Portion (80,000)
with more than one explanation per page will not be accepted. Tax Exempt Portion $20,000.
Items 29 thru 36 may require additional space for explanation.
Part 6: Original Process and Alternative
(Theoretical) Conventional Control
Line 27: AQD Source ID (SRN). Enter the state registration Example 1
number for your facility issued by the DEQ. Case 1: A $200,000 process change to a coating line
Line 28: Emission Unit. If the equipment is part of a Renewable results in lower VOC emission. Theoretically, a
Operating Permit, Permit to Install, or is reported in the thermal oxidizer and capture equipment could have
Michigan Air Emission Reporting System (MAERS), it may had the same net decrease in emission, but would’ve
have an emission unit associated with it. If so, enter the name cost $100,000. In this case, a 25% tax exemption for
of the emission unit to which it belongs. If not, the Michigan the process change would be appropriate, thereby
Department of Environmental Quality, Air Quality Division, making $50,000 eligible for tax exemption.
“Operational Memorandum No. 6” will assist you in defining an Case 2: A $500,000 process change to a coating line
emission unit for your facility. A separate TE-PROCESS should results in lower VOC emission. Theoretically, a
be submitted for each emission unit. Multiple TE-Process and thermal oxidizer and capture equipment could have
TE-Equipment forms may be filed under one application. had the same net decrease in emission, but would’ve
cost $100,000. In this case, the $100,000 control
Part 7: New Process
equipment addition would’ve had the same net
Line 37: Emission Unit. If the new equipment is part of a effect, and is less than 25% of $500,000 ($125,000).
Renewable Operating Permit, Permit to Install, or is reported in Therefore, in this case, a tax exemption of $100,000
the Michigan Air Emission Reporting System (MAERS), it may would be issued, even though the $500,000 process
have an emission unit associated with it. If so, enter the name of change was the actual action taken.
the emission unit to which it belongs. It is possible that it will
have the same name as that listed on line 28.
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