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Renewable Energy Financing and Property Tax Issues

June 25, 2011

Michigan Energy Fair

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• Financing

• Property Tax

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grant bond loan

Federal State Utility residential commercial

FinancingIndustrial nonprofit municipal governmentstax credits/exemptions/deductions amortizationTribal governments schools

Industry recruitment

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Residential

Federal Incentives• Energy Efficient Mortgages

– Renewable Energy: Solar

• Tax Credit– Renewable Energy: Biomass

• 30% Tax Credit– Renewable Energy: Multiple

• Personal Exemption

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Residential

State Incentives

• Michigan Saves

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Michigan Saves

• Loans up to $20,000

• MichiganSaves.org

• Solar Photovoltaic

• Authorized contractors

• Participating Lenders

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Commercial/Corporate

Federal Incentives

• Bonus Depreciation

• Corporate Exemptions

• Investment Tax Credit (or grant from DOT)

• Production Tax Credit

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Commercial/Corporate

State Incentives

• Revolving Loan Fund

• Tax Credits

• Renaissance Zones

• PACE

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Other Sectors and Opportunities

Federal Incentives

• CREB/QECB

• REPI

• Grants

• Loan Guarantee Programs

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Other Sectors and Opportunities

State Incentives

• Grants

• Revolving Loan Funds

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Property Tax

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Property Tax Issues

• Different valuation methods

• Differing interpretations around the State

• Differing opinions on personal vs. real

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Valuation

• The replacement value of the system

• What value the system adds

• Revenue method

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Property Tax for non-residential

• 100% exemption for those in alternative energy technology business

• 100% exemption for agricultural sector

• Electric providers installing renewable energy continue to pay property tax

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Property Tax Legislation

• Amending classification

• Amending definitions

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Other Incentives

• Financial

• Environmental

• Better Neighbor

• Better Consumer

• Sustainability

• Fun!

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What we can all do…

• Legislation

• Ordinances

• Education

• Participation

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Stay Informed

• Subscribe to the Michigan Renewable Energy Program email listserv at www.Michigan.gov/mrep

DevelopersDevelopers

InstallersInstallers

UtilitiesUtilities

GovernmentGovernment

Non-profitsNon-profits

IndividualsIndividuals

MREPMREP

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• Michigan.gov/renewables– Legislation, incentives, net metering, contacts

• DSIREUSA.org– List of incentives

• Katie Trachsel, CPA– TrachselK@Michigan.gov– (517)373-1808