| Program | Alternative-Energy Personal Property Tax Exemption |
|---|---|
| Category | Financial Incentive |
| Implementing sector | State |
| Last Update | |
| State | Michigan |
| Website | https://www.senate.michigan.gov/SFA/Publications/Notes/2002Notes/NotesJulAug02T… |
| Technologies | Solar Water Heat, Solar Space Heat, Solar Thermal Process Heat, Solar Photovoltaics |
Michigan HB 4465, effective 11/15/2019, reinstates the property tax exemption for alternative energy systems (AES) that was in effect from 2002 until to 2012. The summary of SB 1316, the original tax exemption bill, can be found below.
"Alternative energy personal property" certified by the NextEnergy Authority and located in the NextEnergy Zone is exempt from the collection of personal property taxes. This exemption includes (1) "alternative energy systems," (2) "alternative energy vehicles," (3) the personal property of an "alternative energy technology business" and (4) the personal property of a business not engaged in alternative-energy technology that is used solely for the purpose of researching, developing or manufacturing alternative-energy technologies. The law applies not only to companies engaged in the manufacturing or research and development of alternative energy technologies, but also to end users.
Homeowners are NOT eligible for this exemption. Property must be new to Michigan. The exemption does not include real property, such as land and buildings. Within 60 days after a company or end user receives notification of certification of "alternative energy personal property," the local school district or local tax-collecting unit may adopt a resolution disallowing exemption of the property from certain taxes. The Michigan Strategic Fund designated the NextEnergy Zone a Renaissance Zone in 2002. Businesses located within this zone may be eligible for other tax benefits. Contact the NextEnergy Center for more information. NextEnergy is a comprehensive economic-development plan to position Michigan as a world leader in the research, development, commercialization and manufacture of alternative-energy technologies. NextEnergy was created to address the risks of continued dependence on foreign energy resources, to mitigate increasing environmental concerns, and to prepare for the possibility of technologies that may replace the internal combustion engine. The NextEnergy Zone, located in Detroit at Wayne State University Research and Technology Park, is home of the 40,000-square-foot NextEnergy Center. The center includes laboratory facilities, business incubator space, collaborative meeting space and other facilities that will support Michigan's alternative-energy industry.
"Alternative energy personal property" certified by the NextEnergy Authority and located in the NextEnergy Zone is exempt from the collection of personal property taxes. This exemption includes (1) "alternative energy systems," (2) "alternative energy vehicles," (3) the personal property of an "alternative energy technology business" and (4) the personal property of a business not engaged in alternative-energy technology that is used solely for the purpose of researching, developing or manufacturing alternative-energy technologies. The law applies not only to companies engaged in the manufacturing or research and development of alternative energy technologies, but also to end users.
Homeowners are NOT eligible for this exemption. Property must be new to Michigan. The exemption does not include real property, such as land and buildings. Within 60 days after a company or end user receives notification of certification of "alternative energy personal property," the local school district or local tax-collecting unit may adopt a resolution disallowing exemption of the property from certain taxes. The Michigan Strategic Fund designated the NextEnergy Zone a Renaissance Zone in 2002. Businesses located within this zone may be eligible for other tax benefits. Contact the NextEnergy Center for more information. NextEnergy is a comprehensive economic-development plan to position Michigan as a world leader in the research, development, commercialization and manufacture of alternative-energy technologies. NextEnergy was created to address the risks of continued dependence on foreign energy resources, to mitigate increasing environmental concerns, and to prepare for the possibility of technologies that may replace the internal combustion engine. The NextEnergy Zone, located in Detroit at Wayne State University Research and Technology Park, is home of the 40,000-square-foot NextEnergy Center. The center includes laboratory facilities, business incubator space, collaborative meeting space and other facilities that will support Michigan's alternative-energy industry.
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