LANSING – Residents who want to put up small-scale solar, wind, geothermal or water energy devices on their property could see help from the state ensuring the device doesn’t spike their tax bill under legislation before the House Energy and Technology Committee.

The panel heard testimony Tuesday on HB 4103 , which would require the energy conversion devices receive a certificate exempting them from the property tax starting December 31, 2009.

Residents would apply for the certificate through the Next Energy Authority, which would certify the device. The actual tax exemption would come from the State Tax Commission under the bill.

The legislation mirrors a bill passed last session by the House, but did not make it through the Senate.

During testimony, the committee heard from the Bailey family, who put a wind turbine on their residential property in Huron County after having solar panels affixed to their home for years.

Linda Bailey told legislators the experience has led them to be the poster child for not adding renewable energy systems to the home.

Originally, the family was told by a local official the turbine would not affect their property assessment because it was just like having a generator on the property. They have since been told it will affect their tax bill, she said.

The family also has run into various zoning issues, with their property now being reclassified from residential to commercial.

“We just try to do our part. We don’t want speed bumps,” Homer Bailey said.

Bailey said working with Detroit Edison on connecting their turbine to the grid has worked out fine.

Committee chair and bill sponsor Rep. Jeff Mayes (D-Bay City) said the Bailey’s story should also be told to the Wind Energy Resource Zone Board, which is tasked with identifying barriers to residents installing renewable energy devices, including local statues.

But the legislation also targets the Bailey’s issue of property assessment. Mr. Mayes said the bill is intended to lower the investment cost of installing a small renewable energy system at home.

The panel, however, did not vote the bill on because Mayes and the Department of Treasury are still working out some details of the bill, such as streamlining the certification process, perhaps making it more of a local matter since that is where property assessment takes place.

Officials are also deciding how to treat people who already installed an energy device on the property before the bill takes effect at the end of the year.

Committee members suggested all possible energy systems, including advanced batteries used in conjunction with energy devices, be included in the legislation as the market for renewables is constantly evolving.

The Michigan Environmental Council indicated its support for the legislation.

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