Advocacy News – June 23, 2023
This week the Michigan Senate Energy and Environment Committee and then full House of Representatives took up two bipartisan bills that would help create a streamlined taxation system for local governments that support solar energy projects. House Bills 4317 and 4318 – introduced by Republican State Rep. Curt VanderWall and Democratic State Rep. Cynthia Neeley – would allow governments to opt into payments in lieu of taxes (PILT) for commercial solar energy developments as an alternative to developers paying local property taxes.
The Bill Package Includes:
- A PILT price per megawatt (MW) of capacity for solar projects greater than 2 MW in size.
- Sets a $7,000 rate per MW for 20 years in most cases, compared to the $4,000 rate in previous bills vetoed by Gov. Whitmer.
- The PILT rate would be lowered to $2,000 to incentivize developments in certain areas, such as brownfields.
The Michigan Chamber testified in support of the bills, making the argument that after months of workgroups and negotiations, this legislation was an important step in reducing regulatory barriers to renewable energy development. The bills passed unanimously out of committee on Tuesday, then were passed with broad bipartisan support Wednesday afternoon during what is expected to be the legislature’s final session day before breaking for the summer season.
The bills now head to the Governor who is expected to sign them into law in the coming days.
For questions or more information, contact Mike Alaimo at malaimo@michamber.com.