Bill > HB2083

This bill modifies property tax exemptions for energy storage systems (ESS) in Kansas, creating new rules that will take effect on January 1, 2025. Specifically, the legislation excludes new energy storage systems from the existing commercial and industrial machinery and equipment tax exemption while simultaneously creating a separate property tax exemption for these systems. An energy storage system is defined as a commercial or utility-scale device that can charge energy from the electrical grid or a generation facility, store that energy, and then discharge it later to provide electricity or grid services. The bill defines a "new energy storage system" as one whose construction begins on or after January 1, 2025, with an important caveat that systems which received county approval before that date are not considered "new" and may retain previous tax treatment. The legislation aims to provide clarity around the tax status of emerging energy storage technologies, potentially incentivizing their development while ensuring they are appropriately classified for tax purposes. The changes will apply to all taxable years starting after December 31, 2024, giving businesses and local governments time to prepare for the new regulations.

Budget and Finance

Taxation (H)

https://kslegislature.gov/li/b2025_26/measures/hb2083/