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Governor signs bills supporting streamlined solar taxation for local governments

Advocacy News – Aug. 3, 2023

Last week the Governor signed two bills that represent the product of nearly two years of MI Chamber advocacy that will help create a more uniform system for taxing solar energy installments throughout the state. The original bills would have created a more incentivized approach that encouraged investments from out of state renewable developers, but those bills were vetoed by the Governor in 2020.

Why it matters: House Bills 4317 and 4318 allow local governments and commercial solar energy developments to opt into payments in lieu of taxes (PILT). Solar PILT will cut red tape, cut down on costly, time-consuming litigation between local governments and commercial solar energy developments and clear the way for more solar energy in Michigan.

“We live in a state with a few big cities and many, many local communities,” said state Representative Curt VanderWall (R-Ludington), sponsor of HB 4317. “Too often those smaller towns and suburbs get overlooked. I am very pleased to sponsor this legislation and make sure they get the same opportunities as anyone else. There’s no reason we can’t treat our smaller communities with as much attention and care as our larger cities. Now, we can take a step forward towards a more affordable, brighter future for the entire state of Michigan.”

What’s next: While it is important this legislation has finally been signed into law, renewable energy advocates are increasingly focused on reforms to how these projects are permitted and sited, siting immense challenges in dealing with local control issues. Siting reform is likely to be a top policy priority in the fall and the MI Chamber is working with members to develop a solution that balances the need to make meaningful reforms and ensure feedback from all stakeholders is addressed.

For more information, contact Mike Alaimo at malaimo@michamber.com.