LANSING – In an effort to encourage more energy independence and ease the property tax burden on Michigan residents, State Representative Gary McDowell (D-Rudyard) today threw his support behind a plan to create a property tax exemption for homeowners who install renewable energy devices. The plan passed the House and is headed for the Senate.
"We must act to truly change the way our residents consume energy in Michigan," McDowell said. "This plan provides an incentive to those who might be on the fence about whether to upgrade their house to make it more energy efficient. Alternative energy is a rapidly growing field, and our state should be working hard to be a part of that growth."
The plan aims to encourage more energy independence without increasing property owners' taxes.
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 offset the savings on property owners' energy bills.
The 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 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.
"It is time to show businesses that Michigan is ready to make changes to the way we get our energy," McDowell said. "Making Michigan a leader in the alternative energy field will attract businesses to our state. I urge my colleagues in the Senate to quickly pass this plan to begin turning our economy around."