Bill > S1329

This bill aims to adjust how solar and wind-powered energy systems are taxed, particularly for governmental entities and by introducing a payment in lieu of taxes, or PILOT, system for certain systems. It clarifies that governmental entities can be included in provisions related to property taxation, and it specifies that renewable generation facilities, defined as eligible under a specific section of chapter 25A and where at least 50% of the energy output benefits the local municipality or the owning governmental entity, are subject to certain tax rules. For solar or wind systems that produce no more than 125% of a property's annual energy needs and are "behind the meter" (meaning they directly serve the property's energy needs), they will remain exempt from property taxes. However, all other solar and wind systems will be subject to a PILOT payment equal to 6% of their gross electricity sales, including net metering credits, with initial payments based on estimated sales determined by the department of revenue. This exemption and PILOT structure will be in effect for 20 years from the system's operation date, with specific provisions for existing PILOT agreements and projects developed under certain sections of chapter 164. The bill also clarifies that solar and wind generation facilities are not considered "generation facilities" for the purposes of a specific tax section. Importantly, the bill states it will be repealed on December 31, 2017, indicating it is a proposed change to existing law that may have a limited effective period or is part of a larger legislative process.