Financing Renewable Energy: Options for Developing Financing
Renewable Energy Financing and Property Tax Issues
description
Transcript of Renewable Energy Financing and Property Tax Issues
![Page 1: Renewable Energy Financing and Property Tax Issues](https://reader035.fdocuments.in/reader035/viewer/2022070423/568167d3550346895ddd27bd/html5/thumbnails/1.jpg)
MICHIGAN PUBLIC SERVICE COMMISSION
Renewable Energy Financing and Property Tax Issues
June 25, 2011Michigan Energy Fair
![Page 2: Renewable Energy Financing and Property Tax Issues](https://reader035.fdocuments.in/reader035/viewer/2022070423/568167d3550346895ddd27bd/html5/thumbnails/2.jpg)
MICHIGAN PUBLIC SERVICE COMMISSION
• Financing
• Property Tax
![Page 3: Renewable Energy Financing and Property Tax Issues](https://reader035.fdocuments.in/reader035/viewer/2022070423/568167d3550346895ddd27bd/html5/thumbnails/3.jpg)
MICHIGAN PUBLIC SERVICE COMMISSION
grant bond loanFederal State Utility residential commercial
FinancingIndustrial nonprofit municipal governmentstax credits/exemptions/deductions amortizationTribal governments schools
Industry recruitment
![Page 4: Renewable Energy Financing and Property Tax Issues](https://reader035.fdocuments.in/reader035/viewer/2022070423/568167d3550346895ddd27bd/html5/thumbnails/4.jpg)
MICHIGAN PUBLIC SERVICE COMMISSION
Residential
Federal Incentives• Energy Efficient Mortgages
– Renewable Energy: Solar• Tax Credit
– Renewable Energy: Biomass• 30% Tax Credit
– Renewable Energy: Multiple• Personal Exemption
![Page 5: Renewable Energy Financing and Property Tax Issues](https://reader035.fdocuments.in/reader035/viewer/2022070423/568167d3550346895ddd27bd/html5/thumbnails/5.jpg)
MICHIGAN PUBLIC SERVICE COMMISSION
Residential
State Incentives• Michigan Saves
![Page 6: Renewable Energy Financing and Property Tax Issues](https://reader035.fdocuments.in/reader035/viewer/2022070423/568167d3550346895ddd27bd/html5/thumbnails/6.jpg)
MICHIGAN PUBLIC SERVICE COMMISSION
Michigan Saves
• Loans up to $20,000
• MichiganSaves.org
• Solar Photovoltaic
• Authorized contractors
• Participating Lenders
![Page 7: Renewable Energy Financing and Property Tax Issues](https://reader035.fdocuments.in/reader035/viewer/2022070423/568167d3550346895ddd27bd/html5/thumbnails/7.jpg)
MICHIGAN PUBLIC SERVICE COMMISSION
Commercial/Corporate
Federal Incentives• Bonus Depreciation• Corporate Exemptions• Investment Tax Credit (or grant from DOT)• Production Tax Credit
![Page 8: Renewable Energy Financing and Property Tax Issues](https://reader035.fdocuments.in/reader035/viewer/2022070423/568167d3550346895ddd27bd/html5/thumbnails/8.jpg)
MICHIGAN PUBLIC SERVICE COMMISSION
Commercial/Corporate
State Incentives• Revolving Loan Fund• Tax Credits• Renaissance Zones• PACE
![Page 9: Renewable Energy Financing and Property Tax Issues](https://reader035.fdocuments.in/reader035/viewer/2022070423/568167d3550346895ddd27bd/html5/thumbnails/9.jpg)
MICHIGAN PUBLIC SERVICE COMMISSION
Other Sectors and Opportunities
Federal Incentives• CREB/QECB• REPI• Grants• Loan Guarantee Programs
![Page 10: Renewable Energy Financing and Property Tax Issues](https://reader035.fdocuments.in/reader035/viewer/2022070423/568167d3550346895ddd27bd/html5/thumbnails/10.jpg)
MICHIGAN PUBLIC SERVICE COMMISSION
Other Sectors and Opportunities
State Incentives• Grants• Revolving Loan Funds
![Page 11: Renewable Energy Financing and Property Tax Issues](https://reader035.fdocuments.in/reader035/viewer/2022070423/568167d3550346895ddd27bd/html5/thumbnails/11.jpg)
MICHIGAN PUBLIC SERVICE COMMISSION
Property Tax
![Page 12: Renewable Energy Financing and Property Tax Issues](https://reader035.fdocuments.in/reader035/viewer/2022070423/568167d3550346895ddd27bd/html5/thumbnails/12.jpg)
MICHIGAN PUBLIC SERVICE COMMISSION
Property Tax Issues
• Different valuation methods
• Differing interpretations around the State
• Differing opinions on personal vs. real
![Page 13: Renewable Energy Financing and Property Tax Issues](https://reader035.fdocuments.in/reader035/viewer/2022070423/568167d3550346895ddd27bd/html5/thumbnails/13.jpg)
MICHIGAN PUBLIC SERVICE COMMISSION
Valuation
• The replacement value of the system• What value the system adds • Revenue method
![Page 14: Renewable Energy Financing and Property Tax Issues](https://reader035.fdocuments.in/reader035/viewer/2022070423/568167d3550346895ddd27bd/html5/thumbnails/14.jpg)
MICHIGAN PUBLIC SERVICE COMMISSION
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
![Page 15: Renewable Energy Financing and Property Tax Issues](https://reader035.fdocuments.in/reader035/viewer/2022070423/568167d3550346895ddd27bd/html5/thumbnails/15.jpg)
MICHIGAN PUBLIC SERVICE COMMISSION
Property Tax Legislation
• Amending classification
• Amending definitions
![Page 16: Renewable Energy Financing and Property Tax Issues](https://reader035.fdocuments.in/reader035/viewer/2022070423/568167d3550346895ddd27bd/html5/thumbnails/16.jpg)
MICHIGAN PUBLIC SERVICE COMMISSION
Other Incentives
• Financial• Environmental• Better Neighbor• Better Consumer• Sustainability• Fun!
![Page 17: Renewable Energy Financing and Property Tax Issues](https://reader035.fdocuments.in/reader035/viewer/2022070423/568167d3550346895ddd27bd/html5/thumbnails/17.jpg)
MICHIGAN PUBLIC SERVICE COMMISSION
What we can all do…
• Legislation
• Ordinances
• Education
• Participation
![Page 18: Renewable Energy Financing and Property Tax Issues](https://reader035.fdocuments.in/reader035/viewer/2022070423/568167d3550346895ddd27bd/html5/thumbnails/18.jpg)
MICHIGAN PUBLIC SERVICE COMMISSION
Stay Informed
• Subscribe to the Michigan Renewable Energy Program email listserv at www.Michigan.gov/mrep
Developers
Installers
Utilities
Government
Non-profits
Individuals
MREP
![Page 19: Renewable Energy Financing and Property Tax Issues](https://reader035.fdocuments.in/reader035/viewer/2022070423/568167d3550346895ddd27bd/html5/thumbnails/19.jpg)
MICHIGAN PUBLIC SERVICE COMMISSION
• Michigan.gov/renewables– Legislation, incentives, net metering, contacts
• DSIREUSA.org– List of incentives
• Katie Trachsel, CPA– [email protected]– (517)373-1808