United States
Environmental Protection
k Agency
xvEPA
State Incentives for Achieving Clean and Renewable
Energy Development on Contaminated Lands
The development of clean and renewable energy on formerly used land offers many economic and environmental benefits. Combining clean and
renewable energy and contaminated land cleanup incentives can allow investors and communities to create economically viable clean and renewable energy redevelopmei
projects. This document provides information about incentives in your state that can be leveraged for clean and renewable energy and development of contaminated land.
Incentives for Clean and Renewable Energy
Funding (grants, loans, bonds, etc.)
21st Century Job Fund
www.michiganadvantage.org/Targeted-lnitiatives/21st-Century-Jobs-
Fund/Default.aspx
Provides more than $1 billion for research and commercialization activities
in alternative energy and other high-tech industries. While funding is
currently unavailable, check the Web site for updated information.
21st Century Investment Fund
www.michigan2 Istcenturyinvestmentfund. com/
Fosters the creation and growth of new jobs, new businesses, and new
industries within the state through investments funds, as well as potential
co-investments alongside these funds. Areas of interest include:
"competitive edge technologies" (e.g., alternative energy technology).
Venture Michigan Fund
www.venturemichigan.com/index2.htm
Provides funding to venture capital fund managers that focus on areas
including alternative energy technology, high-technology, and healthcare.
Small Business Innovative Resources (SBIR)/Small Business
Technology Transfer (STTR) Emerging Business Fund
http://ref.michigan.org/medc/ttc/21stCentury/SBIR_STTR/
While funding is exhausted, future programs are in the development stage.
Updated program information will be posted to the above Web site.
Tax Incentives (abatements, deductions, credits, etc.)
Renewable Energy Renaissance Zones
http://ref.michigan.org/medc/services/sitedevelopment/renzone/
Provides tax abatement and credits for up to 15 years to renewable energy
facilities located in Renaissance Zones against Michigan Business Tax
(MBT), state education tax, personal and real property taxes, and local
income tax.
Michigan NextEnergy Authority (MNEA)
http://ref.michigan.org/medc/cm/attach/F815CBED-04EB-4D6D-98CO-
E0634C2536DO/MI%20NextEnergy%20Authority%20Fact%20Sheet.pdf
MNEA Michigan Business Tax (MBT) Credit
Provides a nonrefundable credit against MBT liability for business
activities and property related to the research, development, and
manufacturing of alternative energy technologies.
MNEA General Property Tax Credit
Provides a 100% personal property tax exemption through 2012 for
property certified as Alternative Energy Personal Property.
MNEA Alternative Energy Zone (AEZ) Tax Credits
Provides Renaissance Zone tax benefits and a refundable payroll credit
on the SBT to businesses that promote the research, development, and
manufacturing of Alternative Energy Technologies within the Detroit AEZ.
Michigan Economic Growth Authority (MEGA) High-Tech Job
Creation Tax Credits
www.themedc.org/Boards-Committees/MEGA-Board/Default.aspx
Provides a refundable tax credit up to 100% of the personal income tax
generated by new workers, for up to 20 years, against the Michigan
Business Tax to alternative energy technology businesses.
Technical Assistance and Other Incentives
http://ref.michigan.org/medc/ttc/Alternative.Energy/Resources.Partners/
Provides an array of resources and partners to encourage alternative
energy research and development (see Web site for points of contact).
Net Metering
www.legislature.mi.gov/documents/2007-2008/publicact/htm/2008-PA-
0295.htm
Authorizes net metering for renewable energy systems that generate up to
20 kW of electricity using solar, wind, biomass, geothermal, anaerobic
digester gas (i.e., animal waste), landfill gas, municipal solid waste, and
moving water, up to 0.5% of a utility's peak load.
Quick Facts
Public Benefit Fund (PBF)
Renewable Portfolio Standard
10% by 2015
Net Metering
Interconnection Standards
Yes 0 No D
Yes 0 No D
Yes 0 No D
Yes 0 No D
Electric Power Industry Generation by
Primary Energy Source (EIA, 2006)
Petroleum 0.4% Nuclear 25.8%
Natural Gas 10.0% Hydroelectric 1.4%
Coal 60.2% Other Renewables 2.2%
Points of Contact
MEDC, www.themedc.org
21st Century Job Fund, 21st Century Investment Fund
Michael Shore, shorem2@michigan.org, (517) 241-2271
Venture Michigan Fund
Robert Payne, bob.payne@credit-suisse.com, (248) 619-1868
SBIR/STTR Emerging Business Fund, SBIRinfo@michigan.org
Renewable Energy Renaissance Zones
Sue Carlson, carlsons@michigan.org, (517) 335-0664
MNEA, Dan Radomski, danr@nextenergy.org, (313) 833-0100 Ext. 150
MEGA High-Tech Job Creation Tax Credits
Valerie Hoag, hoagv@michigan.org, (517) 335-1951
Net Metering, Michigan Public Service Commission
Julie Baldwin, baldwinj2@michigan.gov, (517) 241-6115
Information current as of November 2008; please refer to www.dsireusa.org and the state Web sites
provided, or contact the points of contact identified above for more up to date information.
Michigan Incentives for Clean and Renewable Energy - Page '
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Incentives for Development of Contaminated Land
Funding (grants, loans, bonds, etc.)
Michigan Department of Environmental Quality (DEQ)
Brownfields Redevelopment Grants and Loans
www.michigan.gov/deqbrownHelds
Brownfield Redevelopment Grants
Provides grants up to $1 million to local units of government and
brownfields redevelopment authorities to investigate and remediate
contaminated sites that will be used for identified redevelopment projects.
Grant funds may be used for the environmental activities necessary for
the safe reuse of the site.
Brownfield Redevelopment Loans
Provides low-interest loans up to $1 million to local units of government
and brownfields redevelopment authorities to investigate and remediate
sites of known or suspected environmental contamination. A committed
development is not required, but the site must have potential economic
benefit to the community. Current interest rate is 2%, with no payment or
interest due for the first five years of a 15-year repayment period.
Tax Incentives (abatements, credits, deductions, etc.)
Tax Increment Financing (TIP)
www.michigan.gov/documents/MSHDA_Brownfield_Tax_lncrement_Finan
cing_166090_7.doc
Applies increased tax revenues to reimburse eligible response costs. Tax
increment revenues are generated by investment in, and redevelopment of,
eligible brownfields property, which includes contaminated, blighted, or
functionally obsolete property. Eligible activities are conducted on the
property as part of the redevelopment project. As the property value
increases, the captured tax increment revenues are used to reimburse the
eligible costs. If captured, school taxes will be used to pay for certain
environmental response activities or all of the non-environmental activities;
prior approval of a work plan by the MDEQ/Michigan Economic
Development is necessary. A Brownfield Redevelopment Authority may
capture increased local and school property tax revenues on eligible
property to pay for the costs of the following eligible activities: 1)
environmental response, demolition, and lead or asbestos abatement
statewide, and 2) infrastructure improvements and site preparation in
qualified local governmental units.
Brownfield Michigan Business Tax Credit
www.michiganadvantage. org/reference/fact-sheets/default. aspx
Provides a tax credit for up to 12.5% of project hard costs (up to a limit of
$10 million) against the MBT liability for eligible redevelopment investments
on property that is identified in a BRA plan as contaminated, or, in a core
community, as contaminated, blighted, or functionally obsolete.
Obsolete Property Rehabilitation Act Tax Abatement
www.michiganadvantage. org/reference/fact-sheets/default. aspx
Freezes the existing taxable value on a designated facility for up to 12
years for eligible projects on an obsolete property in approved Obsolete
Property Rehabilitation Districts.
Personal Property Tax Relief in Distressed Communities
www.michiganadvantage. org/reference/fact-sheets/default. aspx
Allows communities to exempt new personal property from taxes if located
in a designated area.
Limitations on Liability
Voluntary Cleanup Program
www.epa.gov/brownHelds/pubs/bf_states_r5.pdf
Provides an exemption from liability for existing contamination upon
completion and submission of a Baseline Environmental Assessment
(BEA) within 45 days of purchase with the Department of Environmental
Quality.
Quick Facts
Limitations on Liability Yes 0 No D
Number of State-Tracked Contaminated Properties: 3,644
Includes Brownfields-USTfields sites, state-nominated and state-funded cleanup
sites, and sites that have been redeveloped using the Baseline Environmental
Assessment process
Number of EPA CERCLIS Sites: 369
Sites identified for potential investigation under the federal Superfund Program
Number of EPA Brownfields Properties: 1,407
Properties being funded or addressed under the EPA Brownfields Program
There may be some overlap among the categories listed and sites listed may not
represent all potentially contaminated sites in Michigan.
Points of Contact
DEQ Brownfields Redevelopment Grants and Loans
Susan Erickson, ericksons@michigan.gov, (517) 241-8707
TIP, Darlene VanDale, vandaled@michigan.gov, (989) 731-4920 x3453
Brownfield Michigan Business Tax Credit
Sarah Rainero, raineros@michigan.org, (517) 241-4801
Obsolete Property Rehabilitation Act Tax Abatement
Katharine Czarnecki, czarneckik@michigan.org, (517) 241-4950
Personal Property Tax Relief in Distressed Communities
Joe Martin, martinj11@michigan.org, (517) 241-8378
Information current as of November 2008; please refer to
www.epa.gov/brownfields/pubs/st_res_prog_report.htm and the state Web sites provided,
or contact the points of contact identified above for more up to date information.
Michigan Incentives for Development of Contaminated Land - Page 2
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