Solar Energy Facility Exemption

This exemption is designed for utility-scale solar energy facility owners in Michigan. If you build a new solar energy facility, you can apply for a Solar Energy Facility Exemption Certificate (SEFEC) that exempts your property from standard ad valorem real property taxes for 20 years, though you'll pay a specific solar energy facilities tax instead. Applications are filed with your local governmental unit and must also be approved by the State Tax Commission.

You can help utility-scale solar facility clients understand the tax exemption available under 2023 PA 108, which provides 20 years of property tax exemption from ad valorem taxes when they build a new solar energy facility. The SEFEC application process involves both local governmental unit and State Tax Commission approval, creating a predictable tax environment that can improve project economics for your customers.

This program exempts qualified new utility-scale solar energy facilities from ad valorem real property taxes for 20 years under a SEFEC, replacing standard property tax with a dedicated solar energy facilities tax that provides stable local government revenue. Applications are initially filed, reviewed, and approved by local governmental units, with final approval required from the State Tax Commission; the program was established by 2023 PA 108 and targets commercial-sector solar developers.