SB 47: Alternative energy property tax exemption

House Bill 4465 would reinstate the property tax exemption for alternative energy systems (AES) that was in effect from 2002 until to 2012. This bill would ensure that AES’s would be exempt from personal property tax as long as they offset all or a portion of the energy use on the property they are installed, and if the combined true cash value of all exempt property is below $80,000. House Bill 4069 would exclude residential solar panels from being considered as true cash value under real property tax during an assessment. These proposals would simplify the current local government patchwork system around taxation of distributed energy systems and will mitigate confusion. This is especially critical for residential customers, many of whom without this legislation, would have a significant disincentive to invest in renewable energy systems.