MI HB6083

Reduces severance tax on oil and gas from secondary or enhanced production projects to 4.0% for oil and 3.0% for gas, effective December 31, 2012.

Establishes reduced severance tax of 3.0% on natural gas when monthly production averages less than 15 thousand cubic feet per day for a single well or across all wells in a multiwell project.

Maintains existing tax rates of 5% for gas and 6.6% for oil on conventional production, and 4% on stripper well crude oil and marginal property crude oil.

Exempts producers from severance tax on income from Devonian or Antrim shale hydrocarbons qualifying for the federal nonconventional fuel credit under IRC Section 45k when acquired through state royalty interest sales.

Defines "secondary or enhanced production" as injection of water, brine, natural gas, nitrogen, steam, carbon dioxide, or other non-reservoir substances to increase oil or gas recovery, subject to approval by the Department of Environmental Quality.