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Michigan

Michigan

Incentives/Policies for Renewables & Efficiency

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Renewable Energy Renaissance Zones   

Last DSIRE Review: 10/08/2012
Program Overview:
State: Michigan
Incentive Type: Industry Recruitment/Support
Eligible Renewable/Other Technologies: Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Solar Thermal Process Heat, Photovoltaics, Landfill Gas, Wind, Biomass, Solar Pool Heating, Anaerobic Digestion, Renewable Fuels
Applicable Sectors: Commercial, Industrial, Local Government
Amount:100% abatement of Michigan Business Tax*, state education tax, personal and real property taxes, and local income taxes
Maximum Incentive:None
Terms:Tax abatements last up to 15 years, phased out in 25% increments over last 3 years
Start Date:07/12/2006
Web Site: http://ref.michigan.org/medc/services/sitedevelopment/renzone/ind...
Authority 1:
Date Enacted:
Date Effective:
MCL ยง 125.2681 et seq.
07/12/2006 (subsequently amended)
07/12/2006
Summary:

In 2006, Michigan enacted legislation allowing for the creation of Renewable Energy Renaissance Zones (RERZ). Renaissance zones offer significant tax benefits to facilities located within their boundaries. Facilities within a renaissance zone do not pay the Michigan Business Tax*, state education tax, personal and real property taxes, or local income taxes (where applicable). These taxes may be abated for up to 15 years, with the abatements being phased out in 25% increments over the last three years of the zone designation. For residents of renaissance zones designated before 2012, taxpayers are exempt from paying certain income taxes, if they have been a resident of the renaissance zone for 183 consecutive days.

For the purposes of renaissance zone designation, “renewable energy facility” means a facility that creates energy, fuels, or chemicals directly from the wind, the sun, trees, grasses, biosolids, algae, agricultural commodities, processed products from agricultural commodities, or residues from agricultural processes, wood or forest processes, food production and processing, or the paper products industry. Renewable energy facility also includes a facility that creates energy, fuels, or chemicals from solid biomass, animal wastes, or landfill gases. Renewable energy facility also includes a facility that focuses on research, development, or manufacturing of systems or components of systems used to create energy, fuel, or chemicals from the items described in this subdivision. Renewable energy facility also includes a facility that focuses on research, development, or manufacturing of systems or components of systems that involve the conversion of chemical energy for advanced battery technology.

The original law allowed for the designation of up to 10 RERZs, but a 2008 amendment expanded the number to 15 and added a requirement that at least 5 of the zones focus primarily on the production of cellulosic biofuels. In order to have an area designated as an RERZ, a county or community must submit an application to the Michigan Strategic Fund Board (MSF). Renaissance zone designations are approved by the Michigan State Administrative Board based upon recommendations from the Michigan Strategic Fund (MSF). Evaluations will be made based on local economic impacts, job creation, project viability, and other relevant criteria. Renaissance zones must be one distinct, continuous geographic area and must be supported by a tax abatement resolution from the city, village, or township in which the facility is located.

Interested communities and businesses are encouraged to contact the Michigan Economic Development Corporation (MEDC) to discuss potential projects in detail.

 

* Public Act 38 of 2011 repealed the Michigan Business Tax (MBT) and implemented the Corporate Income Tax (CIT). Public Act 39 was passed in conjunction with the CIT and allows for credits awarded under the MBT to be retained for the duration of the agreements. Businesses receiving certain credits, including Renaissance Zone credits, may choose to either continue to file under the MBT to continue claiming their credits, or file under the CIT. No additional Renaissance Zone credits will be awarded after 2011.


 
Contact:
  General Information - MEDC
Michigan Economic Development Corporation
300 North Washington Square
Lansing, MI 48913
Phone: (888) 522-0103
Phone 2: (517) 373-9808
E-Mail: MEDCservices@michigan.org
Web Site: http://www.michiganadvantage.org/
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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2013 - 2014 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.