AP NEWS

Bills clarify solar panels are exempt from property taxes

November 2, 2019

LANSING, Mich. (AP) — Legislation heading to Gov. Gretchen Whitmer would clarify that rooftop solar panels are exempt from property taxes.

The bills won final approval from lawmakers this past week in the wake of a 2018 State Tax Commission memorandum that says solar panels installed on residential property must be assessed as a component of that property.

Under the legislation, installing, replacing or repairing an alternative energy system with a generating capacity of not more than 150 kilowatts would be considered normal maintenance.

Groups representing environmentalists and the renewable energy industry are urging Whitmer to sign the bills, saying they would fix a confusing statewide patchwork of taxing rooftop panels. Former Gov. Rick Snyder vetoed similar bills, citing ambiguity over a threshold for taxing alternative energy systems installed in the future.