HB 2006

Abstract

Tax exemptions for energy storage systems. Declares that energy storage systems are included in the definition of certified pollution control equipment and facilities, making energy storage systems exempt from state and local taxation. The bill defines "energy storage system" as equipment, facilities, or devices that are capable of absorbing energy, storing it for a period of time, and redelivering that energy after it has been stored. The tax exemption applies only to certain projects with alternating current (AC) storage capacity of more than five megawatts and less than 150 megawatts. The bill also allows localities to assess a revenue share of up to $1400 per megawatt on energy storage systems. The bill provides that on July 1, 2026, and every five years thereafter, the maximum amount of the revenue share that a locality may impose on energy storage systems as well as certain solar energy projects shall be increased by 10 percent. No increase may be made to any revenue share imposed by a locality on a solar energy project or energy storage systems for which an application has been filed with the locality and such application has been approved prior to January 1, 2021. The bill defines energy storage systems as electric suppliers whose property shall be assessed by the State Corporation Commission.

Tax exemptions for energy storage systems.Declares that energy storage systems are a separate class of propertyand are exempt from state and local taxation. The bill defines "energystorage system" as equipment, facilities, or devices that are capableof absorbing energy, storing it for a period of time, and redeliveringthat energy after it has been stored. The tax exemption applies onlyto certain projects with alternating current (AC) storage capacityof more than five megawatts and less than 150 megawatts. The billalso provides that a locality may assess a revenue share of up to$1,400 per megawatt of alternating current (AC) storage capacity onenergy storage systems. The bill also creates a sales tax exemptionfor energy storage systems and components purchased for use in suchsystems.