Bad Axe, Michigan – Local State Rep. Kurt E. Damrow, from Port Austin Michigan introduced proposed legislation creating a unique tax for commercial wind, biomass and solar systems. This proposal is being reviewed by the Michigan House Committee on Tax Policy. House Bills 5278 and 5279 to create an Alternative Commercial Energy Systems (ACES).
The new tax introduced by Damrow would be the greater of; a yearly flat tax based on capacity, or $4 per megawatt hour generated for sale that year. The minimum tax for any commerical system would be $15,400 a year for one megawatt systems. If passed this would affect small commercial operations occuring on several farms in Michigan.
The bills are viewed as a response to replacement for the personal property on tax wind developments which reduced local tax revenue. ACES would effectively replace a portion of those lost revenues.