OLR Bill Analysis
AN ACT CONCERNING PROPERTY TAX EXEMPTIONS FOR SOLAR AND OTHER RENEWABLE ENERGY SOURCE INSTALLATIONS.
The bill exempts from the property tax class I renewable energy sources (e. g. , wind machines) or hydropower facilities installed on or after October 1, 2012 to generate electricity for business or industrial use on business or industrial property. Current law exempts these energy sources from the property tax when installed on or after October 1, 2007 to generate electricity for farm and residential use on farms and private residences. It also exempts passive or active solar water or space heating systems and geothermal energy sources on property used for any purpose.
EFFECTIVE DATE: October 1, 2012, and applicable to assessment years beginning on or after this date.
Class I Renewable Energy Source
By law, “class I renewable energy source” means:
1. energy derived from solar power; wind power; a fuel cell; methane gas from landfills; ocean thermal power; wave or tidal power; low emission advanced renewable energy conversion technologies; a run-of-the-river hydropower facility, provided such facility has a generating capacity of not more than five megawatts, does not cause an appreciable change in the river flow, and began operation after July 1, 2003; or a sustainable biomass facility with an average emission rate of, or less than, . 075 pounds of nitrogen oxides per million BTU of heat input for the previous calendar quarter, except that energy derived from a sustainable biomass facility with a capacity of less than 500 kilowatts that began construction before July 1, 2003, may be considered a class I renewable energy source, or
2. any electrical generation, including distributed generation, generated from a Class I renewable energy source (CGS § 16-19(a)(26)).
Planning and Development Committee