The tax credit, required by Public Act 295, is available to certain electric customers who have been charged a renewable energy surcharge on their monthly electric bills. The credit is based on an itemized surcharge (maximum $3 per month) that appears on residential bills as a renewable energy surcharge.

The MPSC notes that only three Michigan electric utilities charged a renewable energy surcharge in 2009: Detroit Edison ($3 per month); Consumers Energy electric ($2.50 per month); and Alpena Power Company ($3 per month). The fee was not billed prior to September 2009 and is only available for those months in which it was actually billed (maximum four months).

The credit is located on the 2009 Michigan Schedule 2 Nonrefundable Credits form, under "Energy Cost Recovery Surcharge Credit." Those who qualify for the credit must have a gross income equal to or less than $65,000 for single/married filing separate and $130,000 for joint filers. The credit cannot be claimed if the utility did not bill for the surcharge or for months that the surcharge was not billed.

The renewable energy surcharge tax credit is unrelated to the power supply cost recovery factor, which appears as a separate line item on electric bills.

The MPSC is an agency within the Department of Energy, Labor & Economic Growth.