Property Tax Exemption for Renewable Energy Equipment

solar-rebates-and-incentives

Program Property Tax Exemption for Renewable Energy Equipment
Category Financial Incentive
Implementing sector State
Last Update
State Rhode Island
Administrator http://www.tax.ri.gov/
Website
Budget -
Start Date
Technologies Solar - Passive, Solar Water Heat, Solar Photovoltaics, Solar Pool Heating
Sectors Residential

H.B. 8354 enacted on July 2016 included provision that exempted qualifying renewable energy systems and associated equipment used in residential and manufacturing sector to be exempt from property taxes throughout the state. Eligible renewable energy resources include direct solar radiation, wind, ocean, geothermal, small hydro, eligible biomass fuels, and fuel cells using renewable resources. 

Renewable energy equipment used in commercial facilities is not included in the exemption. However, H.B. 8343 amended R.I. Gen Law §44-3-9 adding renewable energy equipment to qualify for tax stabilization, which may apply to commercial facilities. This authorizes local governments in Rhode Island to provide tax stabilization agreements for renewable energy systems. RI Office of Energy Resources is developing a commercial renewable energy system tangible tax rate for municipal ordinances and resolutions that will go into effect for the market on January 1, 2017.

Previously, two separate provisions existed in Rhode Island i) that allowed local government to exempt renewable energy systems in their jurisdiction via local ordinance, and ii) required local governments to assess property tax for residential solar equipment no more than conventional heating systems. Both of these provisions have been superseded by HB 8354. 

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