Rep. Bronna Kahle’s plan helping families and small businesses who install solar panels on their properties is a step closer to becoming Michigan law.
The state Senate today approved Kahle’s proposal providing clarity, consistency and predictability related to property taxes after the installation of clean energy systems. Her bipartisan legislation would prevent higher property taxes from being charged because of such installations, as has happened in some communities due to inconsistent rules that vary by location.
“When families and small businesses make the choice to invest in solar panels and other energy efficient systems, they’re looking for ways to help the environment and lower their utility bills. They should not be punished with higher property taxes as a result,” said Kahle, of Adrian. “This legislation will provide clear and consistent taxation rules that stay the same no matter where people live in Michigan.”
Kahle’s plan treats solar panel installation the same as replacing a furnace, installing a generator or buying a more energy efficient hot water heater – none of which result in higher property taxes.
The importance of Kahle’s plan was highlighted earlier this year when three Lenawee area residents testified in support of the proposal during a House Tax Policy Committee meeting. All three installed solar systems on their properties only to be surprised with higher tax bills.
“The path we’ve chosen in Michigan is clear – as a state, we have already decided we want to emphasize clean and renewable energy sources,” Kahle said. “Allowing higher taxes on these installations undermines that goal. I am proud to see this legislation eliminating surprise property tax increases move one step closer to becoming state law.”
House Bills 4069 and 4465 will soon be headed to the governor for final consideration.