Property Tax Exemption for Wind, Solar, and Geothermal Energy Producers

Program Property Tax Exemption for Wind, Solar, and Geothermal Energy Producers
Category Financial Incentive
Implementing sector State
Last Update
State Idaho
Administrator Idaho State Tax Commission
Start Date
Technologies Solar Thermal Electric, Solar Photovoltaics

In 2007, Idaho enacted a bill that restructured the method of taxation for producers of wind energy from a property tax to a tax on production. The aim of this restructuring was to ease the burden on commercial wind farms in the early years of operation. In 2008, Idaho enacted further legislation to include geothermal energy producers under this method of taxation, and solar energy producers were included under legislation (H.B. 534) enacted in 2016. 

Under these policies, commercial wind, solar, and geothermal energy producers, excluding those regulated by the Idaho Public Utilities Commission, are exempt from paying taxes on real estate, fixtures or property related to their renewable energy systems. In lieu of property taxes, however, wind and geothermal energy producers must instead pay a tax of three percent (3%) of gross energy earnings. Solar energy producers must pay a tax of three and a half percent (3.5%) of gross energy earnings.

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