Solar Payment In Lieu of Taxes

HBs 4317 and 4318 will allow local governments to create special tax districts for utility scale solar energy projects. Siting of utility-scale renewable energy is one of the greatest challenges of the clean energy transition. Building local support and buy-in through the financial structures offered in Solar PILT legislation and the IRA will, over time, increase support for these large-scale projects.

These bills will level the playing field for local governments choosing to participate, and would provide a stable, predictable revenue source.  With the district taxes on the solar facility based on its energy capacity and charged in lieu of personal property tax over the 20 year duration of the contract. The amount of solar energy tax would be $7,000 per megawatt, but can be reduced to $2,000/megawatt on state property, opportunity zones, and brownfields.