Solar Energy Facility Exemption

August 15, 2024

Summary

The Solar Energy Facilities Taxation Act (known as the Solar Energy Exemption), 2023 PA 108, provides a tax incentive to owners of utility-scale solar energy generation facilities who build a new solar energy facility and provides local governments a guaranteed and stable revenue stream from the solar energy generation facilities. A Solar Energy Facility Exemption Certificate (SEFEC) entitles a qualified facility to an exemption from ad valorem real property taxes for term of 20 years. Exempt solar facilities are subject to a specific tax called the solar energy facilities tax. Applications are filed, reviewed, and approved by the local governmental unit. The State Tax Commission (STC) must also approve the application.

Program Overview

Implementing Sector:	State
Category:	Financial Incentive
State:	Michigan
Incentive Type:	Property Tax Incentive
Web Site:	https://www.michigan.gov/taxes/property/exemptions/solar-energy-facility-exemption
Administrator:
Start Date:
Eligible Renewable/Other Technologies:	Solar Photovoltaics
Incentive Amount:	100% exemption for 20 years
Eligible System Size:	At least 2 MW

Authorities

Name:

P.A. 108-2023

Contact

Name:	Property Tax Exemption Section
Organization:	Michigan Department of Treasury
Address:
Phone:	(517) 335-7491
Email:	PTE@michigan.gov

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.