Renewable Energy Renaissance Zones (Michigan)

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Summary

Last modified on February 12, 2015.

Financial Incentive Program

Place Michigan

Name Renewable Energy Renaissance Zones
Incentive Type Industry Recruitment/Support
Applicable Sector Commercial, Industrial, Local Government
Eligible 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
Active Incentive Yes

Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs
Amount 100% abatement of Michigan Business Tax*, state education tax, personal and real property taxes, and local income taxes







Start Date 2006-07-12







Maximum Incentive None









Terms Tax abatements last up to 15 years, phased out in 25% increments over last 3 years
Program Administrator Michigan Economic Development Corporation
Website http://ref.michigan.org/medc/services/sitedevelopment/renzone/index.asp
Date added to DSIRE 2009-01-15
Last DSIRE Review 2014-12-05



References DSIREDatabase of State Incentives for Renewables and Efficiency[1]


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.


Incentive Contact

Contact Name General Information - MEDC
Department Michigan Economic Development Corporation

Address 300 North Washington Square

Place Lansing, Michigan
Zip/Postal Code 48913
Phone (888) 522-0103
Phone 2 (517) 373-9808

Email MEDCservices@michigan.org
Website http://www.michiganadvantage.org/
     
     

Authorities (Please contact the if there are any file problems.)

Authority 1: MCL § 125.2681 et seq.
Date Effective 2006-07-12
Date Enacted 07/12/2006 (subsequently amended)



















  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]

References

  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency"