SB 763

Abstract

Local tax exemption; solar energy equipment. Changes the local property tax exemption for solar energy projects from an 80 percent exemption for the life of the project to a step down scale of an 80 percent exemption in the first five years, 70 percent in the second five years, and 60 percent for all remaining years in service. The change applies to solar energy projects that are either (i) projects greater than 20 megawatts and less than 150 megawatts for which an initial interconnection request form has been filed with an electric utility or a regional transmission organization after January 1, 2015, and first in service on or after January 1, 2017, and (ii) projects equaling more than five megawatts and less than 150 megawatts for which an initial interconnection request form has been filed on or after January 1, 2019. The bill provides that if a locality assesses a revenue share on a project, the step down scale shall not apply. The bill extends the sunset date after which new projects may not qualify for the exemption from January 1, 2024, to July 1, 2030, and is identical to HB 1434.

Real estate tax exemption for certified pollution control equipment and facilities. Provides that the tax exemption for certain solar photovoltaic (electric energy) projects shall not be available to projects for which an application has been filed after January 1, 2030. Under current law, the exemption is not available to projects that begin construction after January 1, 2024.  The bill provides that for projects greater than five megawatts, the value of the exemption shall be reduced by multiplying it by 80 percent for the first five years, 70 percent for the next five years, and 60 percent from 10 years until the project ceases to operate.

Real estate tax exemption for certified pollutioncontrol equipment and facilities. Provides that the tax exemptionfor certain solar photovoltaic (electric energy) projects shall notbe available to projects that begin construction after January 1,2030. Under current law, the exemption is not available to projectsthat begin construction after January 1, 2024. The bill broadensthe applicability of this sunset date by applying it to all projectsgreater than five megawatts. Under current law, the sunset applies only to projects greater than 20 megawatts. Thebill provides that for projects greater than five megawatts, thevalue of the exemption shall be reduced by multiplying it by 80 percentfor the first five years, 70 percent for the next five years, and60 percent from 10 years until the project ceases to operate. Thebill contains technical amendments.