Advocacy News – December 18, 2020
SB 1105 (Vanderwall) and SB 1106 (Daley) exempt solar energy equipment from personal property tax and imposes a payment in lieu of tax (PILT) in its place.
Like most states across the country, Michigan is seeking to transition to a clean energy future that relies heavily on renewable energy resources such as solar and wind. In addition to its important environmental and public health benefits and its contribution to reducing carbon emissions, renewable energy has become the least-cost option for new generations and protects ratepayers from the risk of fuel-price volatility. As a result, Michigan utilities have plans for over 7 GW of solar generation in the next decade. Solar development has the potential to create thousands of good-paying jobs in Michigan and contribute over a billion dollars to the economy and local tax base.
Unfortunately, there is one major obstacle to large-scale solar development in Michigan – a personal property tax regime that is out of step with that in other Great Lakes states and other states that have seen significant solar development. Without the reforms provided in SB 1105 and SB 1106, Michigan could miss out on over $11 billion in private sector investment in cutting edge, high technology solar energy equipment.
Working with solar developers, Michigan’s major utilities and the environmental community, the Michigan Chamber led the effort to eliminate a failed personal property tax on solar equipment and apply a simple, flat rate, consistent PILT based on a solar energy facility’s capacity.
While the legislation has received wide-ranging support from business and conservation groups and received substantial bipartisan support, there are whispers that the Governor may veto this transformational legislation. When asked why the threat of a veto is out there no policy reason is provided.
For more information on this issue please contact Dan Papineau at dpapineau@michamber.com