Local Option - Property Tax Exemption for Renewable Energy Systems (Connecticut)

Summary

Last modified on February 12, 2015.

Financial Incentive Program

Place	Connecticut
Name	Local Option - Property Tax Exemption for Renewable Energy Systems
Incentive Type	Property Tax Incentive
Applicable Sector	Commercial, Industrial, Residential, Multi-Family Residential, Agricultural
Eligible Technologies	Solar Water Heat, Solar Thermal Electric, Photovoltaics, Landfill Gas, Wind, Biomass, Hydroelectric, Geothermal Electric, Fuel Cells, Geothermal Heat Pumps, CHP/Cogeneration, Anaerobic Digestion, Wave Energy, Ocean Thermal, Fuel Cells using Renewable Fuels, Energy Storage
Active Incentive	Yes
Implementing Sector	State/Territory
Energy Category	Renewable Energy Incentive Programs
Amount	Local Option
Program Administrator	Connecticut Department of Revenue Services
References	DSIRE

Summary

Connecticut municipalities are authorized, but not required, to offer a property tax exemption lasting up to 15 years for qualifying cogeneration systems installed on or after July 1, 2007 (see Conn. Gen. Stat. § 12-81 (63)). Municipalities that adopt an ordinance to provide such an exemption may require a payment in lieu of taxes from the property owner.

Beginning in October 2013, a municipality may also adopt an ordinance to exempt commercial or industrial Class I renewable resources*, certain hydropower facilities**, or solar thermal or geothermal renewable energy resources. Only facilities installed between January 1, 2010 and December 31, 2013 are eligible for the exemption, and a facility capacity may not exceed the electricity load for the location. Systems installed after 2013 will be eligible for a statewide exemption.

An exemption claim must be filed with the assessor or board of assessors in the town in which the property is placed on or before the first day of November in the applicable assessment year. Applications are not required each year as long as no major alterations are made to the renewable energy system. Contact your local tax assessor's office for more information.

* A "Class I renewable energy source" is defined as “(A) 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 equal to 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 five hundred kilowatts that began construction before July 1, 2003, may be considered a Class I renewable energy source, or (B) any electrical generation, including distributed generation, generated from a Class I renewable energy source.

**Eligible hydropower facilities include "run-of-the-river hydropower facilities provided such a facility has a generating capacity of not more than 5 MW, does not cause an appreciable change in the riverflow, and began operation prior to July 1, 2003."

Incentive Contact

Contact Name	Public Information
Department	Connecticut Office of Policy and Management
Division	Policy Development and Planning Division
Address	450 Capitol Avenue
Place	Hartford, Connecticut
Zip/Postal Code	06106-1379
Phone	(860) 418-6200
Phone 2	(800) 286-2214
Email	OPMwebmaster@po.state.ct.us
Website	http://www.opm.state.ct.us

Authorities (Please contact the if there are any file problems.)

Authority 1:	Conn. Gen. Stat. § 12-81 (57) et seq.
Date Enacted	1977 (subsequently amended)

Authority 2:	S.B. 203
Date Enacted	2013-06-03

• Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.