1. M ICHIGAN P UBLIC S ERVICE C OMMISSION Renewable Energy Financing and Property Tax Issues June 25, 2011 Michigan Energy Fair

2. M ICHIGAN P UBLIC S ERVICE C OMMISSION Financing Property Tax

3. M ICHIGAN P UBLIC S ERVICE C OMMISSION grant bond loan FederalStateUtility residential commercial Financing Industrial nonprofit municipal governments tax credits/exemptions/deductions amortization Tribal governments schools Industry recruitment

4. M ICHIGAN P UBLIC S ERVICE C OMMISSION Residential Federal Incentives Energy Efficient Mortgages –Renewable Energy: Solar Tax Credit –Renewable Energy: Biomass 30% Tax Credit –Renewable Energy: Multiple Personal Exemption

5. M ICHIGAN P UBLIC S ERVICE C OMMISSION Residential State Incentives Michigan Saves

6. M ICHIGAN P UBLIC S ERVICE C OMMISSION Michigan Saves Loans up to $20,000 MichiganSaves.org Solar Photovoltaic Authorized contractors Participating Lenders

7. M ICHIGAN P UBLIC S ERVICE C OMMISSION Commercial/Corporate Federal Incentives Bonus Depreciation Corporate Exemptions Investment Tax Credit (or grant from DOT) Production Tax Credit

8. M ICHIGAN P UBLIC S ERVICE C OMMISSION Commercial/Corporate State Incentives Revolving Loan Fund Tax Credits Renaissance Zones PACE

9. M ICHIGAN P UBLIC S ERVICE C OMMISSION Other Sectors and Opportunities Federal Incentives CREB/QECB REPI Grants Loan Guarantee Programs

10. M ICHIGAN P UBLIC S ERVICE C OMMISSION Other Sectors and Opportunities State Incentives Grants Revolving Loan Funds

11. M ICHIGAN P UBLIC S ERVICE C OMMISSION Property Tax

12. M ICHIGAN P UBLIC S ERVICE C OMMISSION Property Tax Issues Different valuation methods Differing interpretations around the State Differing opinions on personal vs. real

13. M ICHIGAN P UBLIC S ERVICE C OMMISSION Valuation The replacement value of the system What value the system adds Revenue method

14. M ICHIGAN P UBLIC S ERVICE C OMMISSION Property Tax for non-residential 100% exemption for those in alternative energy technology business 100% exemption for agricultural sector Electric providers installing renewable energy continue to pay property tax

15. M ICHIGAN P UBLIC S ERVICE C OMMISSION Property Tax Legislation Amending classification Amending definitions

16. M ICHIGAN P UBLIC S ERVICE C OMMISSION Other Incentives Financial Environmental Better Neighbor Better Consumer Sustainability Fun!

17. M ICHIGAN P UBLIC S ERVICE C OMMISSION What we can all do… Legislation Ordinances Education Participation

18. M ICHIGAN P UBLIC S ERVICE C OMMISSION Stay Informed Subscribe to the Michigan Renewable Energy Program email listserv at www.Michigan.gov/mrep www.Michigan.gov/mrep MREP IndividualsNon-profitsGovernmentUtilitiesInstallersDevelopers

19. M ICHIGAN P UBLIC S ERVICE C OMMISSION Michigan.gov/renewables –Legislation, incentives, net metering, contacts DSIREUSA.org –List of incentives Katie Trachsel, CPA –TrachselK@Michigan.govTrachselK@Michigan.gov –(517)373-1808