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Renewable Energy Financing and Property Tax Issues
June 25, 2011Michigan Energy Fair
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• Financing
• Property Tax
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grant bond loanFederal 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
Developers
Installers
Utilities
Government
Non-profits
Individuals
MREP
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• Michigan.gov/renewables– Legislation, incentives, net metering, contacts
• DSIREUSA.org– List of incentives
• Katie Trachsel, CPA– [email protected]– (517)373-1808
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