NextEnergy Authority Personal Property Tax Abatement Information Now Available

Final legislative package due December 13, 2005

DETROIT, Oct. 13 -- Personal Property Tax Abatement information covering the use of Alternative Energy Technologies during 2005 is now available from the Michigan NextEnergy Authority (MNEA). The MNEA was created by the Michigan Economic Development Corporation (MEDC) to promote the development of Alternative Energy Technology and to provide tax incentives for business activities and property related to the research, development, and manufacturing of these technologies.

Personal property certified by the MNEA as Alternative Energy Personal Property (AEPP) is exempt from personal property taxes. This exemption applies only to personal property that is new to Michigan. The MNEA may certify any of the following as AEPP:

  *  An Alternative Energy System
  *  An Alternative Energy Vehicle
  *  The personal property of an Alternative Energy Business

* The personal property of a business that is not an Alternative Energy Technology Business, which is used solely for the purpose of researching, developing, or manufacturing an Alternative Energy Technology.

An exemption, once certified, is effective through December 31, 2012, provided the taxpayer annually certifies to the MNEA that there has been no change in the user, location, or ownership of the exempted property.

A guidebook that explains the NextEnergy Tax Incentives and Certification Authority, along with the eligible technology definitions and the certification process, is available at http://medc.michigan.org/ttc/FundingOpportunities/ .

To apply for a MNEA Personal Property Tax Abatement, contact Karen Ammarman to request a form at 517.335.4418; ammarmank@michigan.org . Ammarman also can answer questions regarding the form fields and the certification process. Questions regarding technology eligibility should be directed to Vince Nystrom at 517.241.5898; nystromv@michigan.org . All MNEA Personal Property Tax Abatement forms must be received no later than November 1, 2005.

This year's program is comprised of ongoing efforts to extend the current MNEA program to include an expanded technology eligibility for the personal property tax abatements. The most significant changes include thermoelectrics, biomass energy, clean fuels, alternative energy vehicles, hydraulic hybrid vehicles, and renewable fuels. While these efforts have not yet been included in the law, the MEDC is accepting applications for items covered in the new legislation. Accordingly, the MEDC will present these proposals to the state's NextEnergy Authority in December contingent upon the passage of SB-0583, SB-0584, and SB-0803.

The NextEnergy Authority was created under the 2002 Public Act 593 Michigan NextEnergy Authority Act. The NextEnergy Authority is a public body corporate, whose board consists of the members of the Michigan Economic Growth Authority. The Authority, a separate entity than the NextEnergy technology center, is responsible for certifying technology eligibility for the various tax credits and exemptions created under the 2002 NextEnergy legislation. These tax credits and exemptions were developed in support of the NextEnergy initiative.

About NextEnergy Center

The state-of-the-art NextEnergy Center and related energy infrastructure supports research, development, education, and outreach through collaboration among automotive, military, and energy company interests. For more information, visit http://www.nextenergy.org/ .