State Taxation of Alternative Energy Systems Lacks Clarity, Dis-incentivizes Clean Energy

MCEF testifies in support of proposed HB 5143, which seeks to clear up inconsistencies in local government assessments of distributed energy systems      

LANSING — Larry Ward, executive director of the Michigan Conservative Energy Forum (MCEF), delivered testimony last Wednesday during the House Tax Policy Committee in support of Representative Tom Barrett’s (R – District 71) proposed House Bill 5143. Ward issued the following statement:

“Whether for economic, faith, or environmental reasons, MCEF believes that property owners have the right to decide how to power their homes and businesses. And we believe they should not be penalized for choosing to generate their own renewable power. The current state government taxation approach on alternative energy systems lacks clarity and creates confusion across our state, dis-incentivizing individuals who want to invest in clean energy installations.

“Currently, there is no clear approach to assessing self-generation installations – it is a patchwork across the state, where counties and cities apply personal property taxes in some areas, while other localities refrain from doing so. We need to move toward a clear, uniform approach to property taxation to allow greater certainty, which will in turn attract investments from individuals and businesses looking to expand clean energy technologies in our state. HB 5143 will accomplish this.”

Ward concludes: “HB 5143 will also hinder government from further infringing on people’s private property, instead allowing residential property owners greater control over their electricity bills and greater choice over where and how they get their energy, regardless of their zip code.”


About MCEF: The Michigan Conservative Energy Forum is an organization comprised of conservatives who believe that Michigan should adopt a true “All of the Above” energy policy that includes an increase in our commitment to renewable energy and energy efficiency.  MCEF believes encouraging diverse and clean energy production and reduced energy waste will create jobs and stimulate Michigan’s economy, reduce our reliance on foreign energy, improve our national security, and protect our valuable natural resources.