Energy Equipment And Facility Property Tax Valuation

Sections 1 and 2 of the bill ensure that clean energy resources and energy storage systems used to store electricity are assessed for valuation for the purpose of property taxation in a similar manner to renewable energy facility property used to generate and deliver electricity.

Currently, the property tax administrator (administrator) is required to determine the actual value of a small or low impact hydroelectric energy facility, a geothermal energy facility, a biomass energy facility, a wind energy facility, or a solar energy facility using the income approach to valuation only. This valuation currently involves a "tax factor" based on a 20-year period. Section 2 extends this period by 10 years for a renewable energy facility that begins generating energy on or after January 1, 2021. It also specifies that after the 20- or 30-year period, as applicable, a tax factor is not applied and the taxable value shall not exceed the depreciated value floor calculated using the cost basis method. Under section 3 , the administrator is required to utilize the income approach for solar energy facilities that generate 2 megawatts or less, so that similar facilities will be valued in the same manner.
(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)