2020 Senate Bill 1105

Create alternative tax for multi-acre industrial solar installations

Introduced in the Senate

Sept. 10, 2020

Introduced by Sen. Curtis VanderWall (R-35)

To exempt large industrial solar energy arrays covering many acres from the state “personal property tax,” and instead levy a tax on an installation equal to $3,500 per megawatt of the solar panels’ nominal “nameplate capacity,” with the revenue allocated to different taxing units using the same formula as regular property taxes. Senate Bill 1105 authorizes the new tax and Senate Bill 1106 authorizes the personal property tax exemption. The Senate Fiscal Agency estimates the bill would likely reduce local collections by a modest amount, but that state school tax receipts potentially could be reduced.

Referred to the Committee on Finance

Nov. 10, 2020

Reported without amendment

With the recommendation that the substitute (S-1) be adopted and that the bill then pass.

Dec. 3, 2020

Passed in the Senate 23 to 14 (details)

Received in the House

Dec. 8, 2020

Referred to the Committee on Ways and Means

Dec. 15, 2020

Reported without amendment

With the recommendation that the substitute (H-2) be adopted and that the bill then pass.

Dec. 16, 2020

Amendment offered by Rep. John Cherry (D-49)

To index the proposed tax to inflation.

The amendment failed by voice vote

Amendment offered by Rep. Phil Green (R-84)

To increase the proposed alternative tax rate from $4,000 to $5,800 per megawatt of generation capacity.

The amendment failed by voice vote

Passed in the House 73 to 34 (details)

To exempt large industrial solar energy arrays covering many acres from the state “personal property tax,” and instead levy a tax on an installation equal to $3,500 per megawatt of the solar panels’ nominal “nameplate capacity,” with the revenue allocated to different taxing units using the same formula as regular property taxes. Senate Bill 1105 authorizes the new tax and Senate Bill 1106 authorizes the personal property tax exemption. The Senate Fiscal Agency estimates the bill would likely reduce local collections by a modest amount, but that state school tax receipts potentially could be reduced.

Received in the Senate

Dec. 16, 2020

Dec. 17, 2020

Passed in the Senate 25 to 13 (details)

Signed by Gov. Gretchen Whitmer

Dec. 30, 2020