Financial Incentives
- The 21st Century Jobs Fund will invest more than $1 Billion over 10 years in alternative energy and other high-tech industries in Michigan, providing funding for research and commercialization activities.
- The Michigan Next Energy Authority (MNEA) provides tax incentives for business activities and property related to the research, development, and manufacturing of alternative energy technologies.
- Renewable Energy Renaissance Zones, created by PA 270 of 2006, are designated areas that are virtually free of state and local taxes for renewable energy facilities located within their boundaries.
- The Venture Michigan Fund and the 21st Century Investment Fund are two “Fund of Fund” programs with combined capital of over $300 Million. Both were established to augment the growth of alternative energy and other technology sectors by investing in or alongside qualified venture capital and private equity funds. Credit Suisse is the fund manager for both programs.
- The SBIR/STTR Emerging Business Fund provides matching grants to companies that receive funding through the federal Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs.
- High-Tech MEGA job creation tax credits may be awarded against Michigan’s Single Business Tax (SBT) for high-tech companies that are looking to expand or locate in Michigan rather than another state. To be eligible, companies must be involved in technology fields with at least 25% of operating expenses to R&D. Each credit may be awarded for up to 20 years and for up to 100% of the tax related to the project.
- The Ethanol and Biodiesel Matching Grant Program, created by PA 274 of 2006, provide incentives to service stations and bulk plants to convert existing fuel delivery systems or create new fuel delivery systems for the distribution of E85 fuel and biodiesel blends.
- Energy Efficiency and Renewable Energy Outreach Grants may be available through the Michigan Energy Office to non-profit or public organizations for marketing and promotion efforts. Funding categories have included: 1) Solar Energy, 2) Wind Energy, 3) ENERGY STAR Products, and 4) ENERGY STAR Homes.
- Community Energy Project Grants may be available through the Michigan Energy Office to non-profit and public organizations. Funding categories have included: 1) Solar and/or wind energy education, 2) Bioenergy/biofuels/bioproducts education, 3) Green commuting projects, 4) Green building projects, and 5) Statewide energy conferences.
- Large-Scale Photovoltaic Demonstration Project Grants may be available through the Michigan Energy Office to public and non-profit organizations for the installation and demonstration of new photovoltaic (PV) systems with a minimum capacity of 10 kilowatts.
- The Michigan Biomass Energy Program (MBEP) regularly provides funding for state bioenergy and biofuels projects. Funding categories typically include biofuels and bioenergy education, biofuels infrastructure, and biomass technology development and demonstrations.
- The Low-Income and Energy Efficiency Fund, administered by the Michigan Public Services Commission, provides grants for the implementation of energy-efficiency projects and renewable-energy projects in the state.
- The Agricultural Innovation Fund (also known as the “Julian-Stille Value-Added Agricultural Development Fund”), administered by the Michigan Department of Agriculture, provides funding for projects designed to establish, retain, expand, attract, or develop value-added agricultural processing and related agricultural production operations in the state.
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