02/20/2007

Renewable energy tax break proposed

By BRIAN McVICAR

Capital News Service

LANSING — Some lawmakers want residents to go green — energywise, that is.

They've proposed giving residents who buy renewable energy an annual $100 tax break.

Many power companies offer customers the option to buy renewable energy instead of regular electricity. It can be generated from wind turbines, solar power, biodigesters and hydroelectric dams. According to the Michigan 21st Century Energy Plan, 3 percent of the state's energy is now generated from renewable resources.

One sponsor said that the measures would help offset the high cost of renewable energy that deters some consumers from purchasing a green-energy plan.

"Tax incentives provide an incentive for Michigan families to use green energy,” said Rep. John Moolenaar R-Midland, the lead sponsor. "It could help expand the options for people hoping to purchase green energy.”

Other sponsors, all Republicans, include Reps. David Palsrok, of Manistee, John Stahl of North Branch and Bill Huizenga of Zeeland.

Mark Nixon, communications director for the Lansing Board of Water and Light, said he supports the idea.

"We hope it would drive down the cost,” he said.

Nixon said that less than 2 percent of his company's electricity comes from renewable energy, and 500 of its 97,000 customers buy that energy.

"It's obviously a very small amount,” Nixon said.

Some environmentalists say the tax break wouldn't do much to boost renewable energy use.

Martin Kushler, director of the utilities program at the American Council for an Energy Efficient Economy, said the approach is "nibbling around at the edges” of the renewable energy debate and would affect only a small percentage of the population.

More effective, he said, would be to require that a specific amount of an energy company's electricity be generated from renewable resources, adding that states that follow that approach have been successful in expanding renewable energy. Twenty-four states take such an approach.

"That accounts for a much bigger impact,” Kushler said.

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