SB 1106 Summary

• Establishes "Solar Energy Facilities Taxation Act" creating solar energy districts in Michigan cities, villages, and townships where qualified solar facilities of at least 2 megawatts can be located.

• Grants qualified solar energy facilities a 20-year exemption from ad valorem property taxes in exchange for paying an annual "solar energy facilities tax" of $7,000 per megawatt of nameplate capacity ($2,000 per megawatt for facilities on state property, opportunity zones, brownfields, or attached to existing improvements).

• Reduces the specific tax by 50% during construction phase and eliminates it entirely before construction begins; facilities in renaissance zones receive additional exemptions per existing renaissance zone law.

• Requires property owners or lessees to apply for exemption certificates through local governmental units with public hearings; State Tax Commission must approve certificates within 90 days; certificates may be revoked for non-completion, nonpayment, or permanent cessation of operations.

• Distributes collected tax revenue to state, cities, school districts, townships, counties, villages, and authorities in proportions matching industrial personal property tax distribution; new exemptions cannot be granted after December 31, 2031.