Mayes' Energy Plan Passes House

Bay City Lawmaker Pushes Alternative Energy Property Tax Exemption

March 19, 2009
By: MyBayCity Staff

In an effort to encourage more energy independence and ease the property tax burden on Michigan residents, the Michigan House today passed a plan proposed by State Representative Jeff Mayes (D-Bay City) to create a property tax exemption for homeowners who install renewable energy devices.

"This plan encourages investment in the rapidly growing field of alternative energy, which will help attract businesses to Michigan," said Mayes, Chair of the House Energy and Technology Committee. "Making it more affordable for residents to add renewable energy upgrades to their homes will increase demand for solar energy systems and other cutting-edge home improvements. This plan is a win-win for homeowners and businesses."

Currently, when items such as solar panels are installed on a house, they are considered an addition to the property. The additional property taxes on the energy efficient items often end up offsetting the savings on property owners' energy bills.

Mayes' plan will allow property tax exemptions on eligible small-scale energy conversion devices using solar, wind, geothermal, biomass or water energy installed before January 1, 2014. The devices will have to meet the standards prescribed by the Michigan Next Energy Authority in order to qualify.

Biomass devices, such as wood stoves, will have to meet federal Clean Air Act standards and be certified by the Environmental Protection Agency. The plan aims to encourage more energy independence without increasing property owners' taxes. "We must work to make Michigan a leader in the renewable energy industry," Mayes said. "This industry holds incredible job-creating potential. Encouraging the growth and expansion of the renewable energy sector in Michigan will create more jobs for our workers and help turn our economy around. I urge my colleagues in the Senate to take quick action on this plan."