Bill > HB07266

This bill establishes a uniform solar capacity tax for solar photovoltaic systems in Connecticut, targeting systems with a nameplate capacity greater than two megawatts that are approved after July 1, 2026. Owners of such solar systems will be required to pay an annual tax for 20 years to the municipal finance department or tax collector, with the tax calculated as $11,000 multiplied by the number of megawatts of nameplate capacity, increasing by 2% each year. The tax applies to systems that generate more electricity than the load at their location, and if a system has multiple owners, they are jointly responsible for the tax. Municipalities will receive the tax revenue as part of their general revenue, and if a system spans multiple municipalities, the tax will be proportionally allocated. The bill also provides mechanisms for tax appeals, allows municipalities to potentially freeze or stabilize the tax through agreements, and defines how multiple solar installations can be considered part of the same system for tax purposes. Additionally, the bill modifies existing property tax exemption rules for renewable energy sources, specifically limiting exemptions for solar photovoltaic equipment to only the equipment itself and not the underlying real property, effective October 1, 2025.

Budget and Finance

Finance, Revenue and Bonding Committee (J)

https://www.cga.ct.gov/asp/cgabillstatus/cgabillstatus.asp?selBillType=Bill&bill_num=HB07266&which_year=2025