Biomass Gasification and Methane Digester Property Tax Exemption

Michigan farmers can exempt methane digesters, biomass gasification equipment, and crop-residue harvesting equipment from property taxes, provided the methane digester is certified by the Michigan Department of Agriculture and the farm meets Michigan Agriculture Environmental Assurance Program (MAEAP) compliance standards. You must allow up to two universities to access your system to collect data on its effectiveness in generating electricity and processing waste.

This program exempts energy production equipment installed on qualifying farms from property taxation, making it valuable for customers upgrading their farm operations. Methane digesters and biomass gasifiers must be certified by the Michigan Department of Agriculture, and the farm must be verified as MAEAP-compliant before exemption applies.

The exemption covers methane digesters, biomass gasifiers, thermal depolymerization systems, and crop-residue harvesting equipment on farms that achieve MDA certification and MAEAP verification. The program requires farm owners to provide access to university researchers (up to two institutions) for data collection on system performance and waste processing; it targets the agricultural sector and effectively reduces property tax burdens on energy infrastructure while generating information on digester and gasifier effectiveness.