MI HB4317

Establishes the Solar Energy Facilities Taxation Act, creating a system for solar energy districts in Michigan cities, villages, and townships, with one or more districts allowed per qualified local governmental unit.

Qualified solar energy facilities of at least 2 megawatts are exempt from ad valorem property taxes for 20 years after receiving a certificate, but facility owners/lessees must pay an annual solar energy facilities tax of $7,000 per megawatt of nameplate capacity (reduced to $2,000 per megawatt for facilities on state property, opportunity zones, brownfield sites, or attached to existing improvements).

Applicants must file exemption applications with the local governmental unit clerk; the legislative body approves or disapproves within 120 days, then the State Tax Commission approves within 90 days if the facility complies with act provisions.

Tax payments are collected with property taxes and distributed to state, cities, school districts, townships, counties, villages, and authorities in the same proportion as industrial personal property taxes; construction-in-progress facilities receive a 50% tax reduction.

Certificates may be revoked for non-completion, permanent cessation of operations, or unpaid taxes; revocation triggers repayment of prior-year tax savings; new exemptions cannot be granted after December 31, 2031, though existing exemptions continue through their 20-year terms.