Michigan
Financial Incentives
Tax Benefits: Michigan allows for a personal property tax exemption for a wide range of
renewable energy technologies.1 The state also exempts farmers from real and personal property
taxes when certain methane digesters, biomass gasification equipment, or other biomass
equipment is used.2 Qualified individuals are entitled to a tax credit when purchasing or
installing eligible energy efficient residential improvements.3 A tax credit is also available to
station owners installing new infrastructure or converting existing infrastructure to sell biofuels.4
Biofuel is taxed at a lower rate than standard gasoline.5 Qualifying advanced vehicle battery
manufacturers are eligible for a tax credit.6 Businesses researching and developing hybrid
systems for motor vehicles are eligible for a tax credit.7 Tax credits are also available to
businesses engaged in alternative energy research, development, and manufacturing.8
Businesses located within a state-designated “renewable energy renaissance zone” are exempt
from the state business tax, the state education tax, personal and real property taxes, and local
income taxes.9
Grants: Michigan’s public benefits fund, the Low-Income and Energy Efficiency Fund,
provides grants to businesses, nonprofits, government agencies and schools for energy efficiency
projects.10 The Michigan Biomass Energy Program provides funding to government agencies and
nonprofits for biofuel and bioenergy projects.11
Rules and Regulations
Renewable Portfolio Standard: Under Michigan’s RPS, IOUs, alternative retail suppliers,
electric cooperatives, and municipal electric utilities are required to supply 10 percent of their
retail load from renewable sources by 2015. The RPS also includes annual interim compliance
requirements starting in 2012 that vary based on each utility’s existing renewable energy
portfolio.12 Eligible resources include solar thermal and PV, wind, geothermal, municipal solid
waste, landfill gas, certain types of hydropower, and biomass.13 Utilities are permitted to use
energy efficiency measures and advanced cleaner energy systems to meet a limited portion of the
RPS requirement. The Michigan Public Service Commission currently acts as the executing
agency for this policy.14
Facility Siting and Permitting: Michigan has developed a model wind ordinance for local
governments.15
Building Codes, Appliance, and Equipment Standards: The residential component of the
Michigan Uniform Energy Code is based on the 2009 IECC and the commercial component is
based on ASHRAE 90.1-2007.16
Electricity Transmission, Interconnection and Storage: Utilities must provide renewable
energy customer-generators with net metering, with service rates matching those of customers
not participating in net metering. This net metering system was implemented alongside a fivetiered interconnection scheme, with levels based on a system’s generation capability.17
Fuel Standards and Transportation: AVFs using qualifying sources of energy are exempt
from emissions inspection requirements.18 The Michigan Department of Transportation is
directed to promote the transition of transit bus fleets to hybrid vehicles.19
Government Procurement: Michigan has set a goal of reducing energy usage in state buildings
by 25 percent by 2015, compared to 2002, and requires state agencies to purchase energy
efficient products whenever possible.20
Policies, Plans and Governmental Affiliations
Policies and Plans: Michigan has set a goal of reducing GHG emissions to 20 percent below
2005 levels by 2020 and 80 percent below 2005 levels by 2050.21
Government Entities: Michigan Department of Environmental Quality,22 Michigan Department
of Transportation,23 Michigan Energy Office,24 Michigan Public Service Commission.25
Regional Memberships: Michigan is a member of the MGGRA and the MGA.
1
MCL § 211.9i; MCL § 207.821 et seq.; http://ref.michiganadvantage.org/cm/attach/75d7a008-450d-4973-a7cc22cb2f5ee05f/MichiganNextEnergyAuth.pdf.
2
MCL § 211.9(j).
3
MCL § 206.253.
4
MCL § 208.1460.
5
MCL § 207.1008.
6
MCL § 208.1434.
7
MCL §§ 208.1101 to 208.1601.
8
MCL § 208.1429; MCL § 207.821 et seq.; http://ref.michiganadvantage.org/cm/attach/75d7a008-450d-4973-a7cc22cb2f5ee05f/MichiganNextEnergyAuth.pdf.
9
MCL § 125.2681 et seq.; http://ref.michigan.org/medc/services/sitedevelopment/renzone/index.asp.
10
http://www.michigan.gov/lieefund.
11
http://www.michigan.gov/biomass.
12
MCL § 460.1021 et seq.; http://www.michigan.gov/mpsc/0,1607,7-159-16393_53570---,00.html.
13
MCL § 460.1011.
14
http://apps1.eere.energy.gov/states/maps/renewable_portfolio_states.cfm.
15
Sample Zoning for Wind Energy Systems; http://www.michigan.gov/dleg/0,1607,7-154-25676_25774---,00.html.
16
Michigan Uniform Energy Code, Part 10 (Residential) and Part 10a (Commercial).
17
Public Act No. 295 (2008); Michigan PSC Order, Case No. U-15787; http://www.michigan.gov/netmetering;
http://www.michigan.gov/mpsc/0,1607,7-159-16393_48212---,00.html.
18
MCL § 324.6311; MCL § 324.6512.
19
Public Act No. 116 (2009).
20
MCL § 460.1131 et seq.
21
Executive Directive No. 2009-4.
22
http://www.michigan.gov/deq.
23
http://www.michigan.gov/mdot/.
24
http://www.michigan.gov/energyoffice.
25
http://www.michigan.gov/mpsc.