Bill > SB710

This bill extends and modifies the property tax exclusion for active solar energy systems in California, providing an indefinite tax benefit for qualifying solar installations. Specifically, the bill changes the existing law to extend the property tax exclusion for active solar energy systems beginning with tax lien dates on or after January 1, 2026, instead of the previous expiration date of January 1, 2027. The bill introduces a new definition of "qualified active solar energy system" that applies to both residential and commercial solar installations, with specific requirements such as being physically attached to or located near a building and distributing solar energy to that building. For residential systems, the solar installation must be on the same or contiguous parcel, while commercial systems must meet additional capacity requirements. The exclusion continues to apply only until there is a subsequent change in ownership, and the bill removes the previous sunset provision. Importantly, the bill does not require the state to reimburse local agencies for lost property tax revenues and allows for potential reimbursement of state-mandated costs if the Commission on State Mandates determines such costs exist. The bill takes effect immediately as a tax levy, providing an ongoing incentive for solar energy system installations by preventing their added value from increasing property tax assessments.

Budget and Finance

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB710