Bill > H2465

This bill clarifies property tax exemptions for solar and wind-powered energy systems by amending existing law. It specifies that a solar or wind system is exempt from property taxes if it produces no more than 125% of the annual energy needs of the property it serves, including any related contiguous or non-contiguous properties owned or leased by the owner. For systems that produce more energy, an exemption can still be granted if the owner makes a "payment in lieu of taxes" (a payment made to the city or town instead of property taxes) to the municipality where the system is located, with agreements for these payments to be handled similarly to regular tax billing and collection. The exemption will last for 20 years from installation, provided the system is capable of producing energy as required. Additionally, the bill clarifies that for the purposes of certain tax provisions, a "generation facility" will not include facilities powered by the sun or wind to generate electricity. Finally, it includes a provision that the new exemption rules will not apply to systems that already have a signed agreement for a payment in lieu of taxes in place before the bill becomes effective, and these changes will apply to taxes assessed for fiscal years beginning on or after July 1, 2015.