Local units now have the option to enter into a solar payment in lieu of taxes (PILT) agreement for a commercial solar energy facility or assess personal property taxes. Public Acts 108 and 109 of 2023 became effective on July 27 after being signed into law by the governor. The new law permits a township, city or village the option to grant a 20-year property tax exemption to a “qualified solar energy facility” and establish a specific tax based on the electricity-generating capacity of the facility. This requires the establishment of solar energy district and exempts “qualified solar energy facilities” from ad valorem property taxes. The PILT agreement also requires State Tax Commission (STC) approval. The STC issued a bulletin this week indicating it will be working to develop the necessary forms and guidance related to the solar PILT with the intent to have items on the October 2023 STC meeting agenda for review and approval.
Michigan Townships Association
