Bill > H3179

This bill clarifies property tax exemptions for solar and wind energy systems in Massachusetts by modifying existing law to provide specific guidelines for tax treatment of these renewable energy installations. The bill allows property tax exemptions for solar or wind systems that produce up to 125% of the annual electricity needs of the property, including systems located on contiguous or non-contiguous properties within the same municipality. For systems producing more energy, municipalities can enter into payment-in-lieu-of-taxes (PILOT) agreements, with provisions that the payment notices must be mailed and follow similar collection procedures as standard property taxes. The exemption is initially granted for 20 years from installation, with the possibility of extension through a written agreement, but requires annual documentation from the system owner detailing the system's type, capacity, and energy production. The bill also directs the Department of Revenue, in consultation with the Department of Energy Resources, to develop guidance for valuing and assessing taxes on larger solar and wind facilities, including potential standardized formulas and recommendations for PILOT agreements. Existing PILOT agreements will not be required to be modified, and the new regulations will take effect on July 1, 2023, with guidance to be issued within 9 months of the act's effective date.

Budget and Finance

https://malegislature.gov/Bills/194/H3179