LCO No. 6789 1 of 8
General Assembly Raised Bill No. 7266
January Session, 2025
LCO No. 6789
Referred to Committee on FINANCE, REVENUE AND
BONDING
Introduced by:
(FIN)
AN ACT ESTABLISHING A UNIFORM SOLAR CAPACITY TAX.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. (NEW) (Effective July 1, 2025) (a) As used in this section: 1
(1) "Solar photovoltaic system" means equipment and devices that 2
(A) have the primary purpose of collecting solar energy and generating 3
electricity by photovoltaic effect, (B) have a nameplate capacity greater 4
than two megawatts of electricity, and (C) the nameplate capacity of 5
such equipment and devices exceeds the load for the location where 6
such generation is located; 7
(2) "Municipality" means any town, city, consolidated town and city 8
or consolidated town and borough; and 9
(3) "Uniform solar capacity tax year" means the annual accounting 10
period used to calculate the tax under this section, consisting of a 11
twelve-month period commencing on July first and ending the 12
following June thirtieth. 13
Raised Bill No. 7266
LCO No. 6789 2 of 8
(b) Except as provided in subsection (h) of this section, for uniform 14
solar capacity tax years commencing on and after July 1, 2026, each 15
person that owns a solar photovoltaic system in the state for generation 16
or displacement of energy shall pay an annual tax to the department of 17
finance of each municipality in which the system or any part thereof is 18
located, or, if the municipality does not have a department of finance, to 19
the tax collector for such municipality. For the uniform solar capacity 20
tax year commencing July 1, 2026, the tax shall be the product of the base 21
amount of twelve thousand dollars multiplied by the number of 22
megawatts, and any fractional portion thereof, of nameplate capacity for 23
each such system. Commencing with the uniform solar capacity tax year 24
commencing July 1, 2027, and each uniform solar capacity tax year 25
thereafter, the base amount shall be increased by two per cent. If a solar 26
photovoltaic system has multiple owners, each owner shall be jointly 27
and severally liable for the tax owed pursuant to this section. 28
(c) The Office of Policy and Management shall develop a form to be 29
submitted with the tax due under this section. Not later than July 31, 30
2025, the department of finance in each municipality, or, for any 31
municipality that does not have a department of finance, the tax 32
collector of such municipality, shall furnish such form upon request. 33
The tax imposed under this section shall be due and payable on the due 34
date or due dates of such return, as determined by the department of 35
finance or tax collector, as applicable. The department of finance or tax 36
collector, as applicable, may require a single annual payment of the tax 37
imposed under this section or may require semiannual or quarterly 38
installments of such payment. Such tax shall be due and collectible as 39
other property taxes and subject to the same liens and processes of 40
collection. 41
(d) The revenues produced by the tax imposed under this section 42
shall become part of the general revenue of the municipality in which 43
the tax is paid. 44
(e) If a solar photovoltaic system is located in more than one 45
Raised Bill No. 7266
LCO No. 6789 3 of 8
municipality, the tax shall be allocated between or among the 46
municipalities in proportion to the nameplate capacity of the solar 47
photovoltaic system located in each municipality. 48
(f) Whenever the tax imposed under this section is not paid when due 49
to the department of finance or tax collector, as applicable, in a 50
municipality, interest at the rate of one and one-half per cent per month 51
or fraction thereof shall accrue on such tax from the due date of such tax 52
until the date of payment. 53
(g) Any person claiming to be aggrieved by the action of a 54
department of finance or tax collector under this section may appeal the 55
tax to the Superior Court. Any person appealing the tax that pays a 56
portion of such tax during the pendency of such appeal and indicates 57
that such portion is paid "under protest" shall not be liable for any 58
interest on the tax, provided such person pays not less than seventy-five 59
per cent of the amount of the tax assessed by the municipality during 60
the time limits prescribed by the department of finance or tax collector, 61
as applicable, in such municipality in accordance with this section. 62
(h) (1) Any municipality acting through its board of selectmen, town 63
council, court of common council or other legislative body shall have 64
the power to enter into an agreement to freeze or stabilize the tax 65
imposed under this section for any owner of a solar photovoltaic system 66
located in such municipality, as provided in this subsection. 67
(2) With respect to any photovoltaic system located in more than one 68
municipality, such agreement shall only pertain to the tax that is 69
allocated to the municipality that enters into such agreement, in 70
accordance with the provisions of subsection (e) of this section. 71
(i) For purposes of calculating the nameplate capacity of a solar 72
photovoltaic system, the following shall be deemed to be part of the 73
same solar photovoltaic system: (1) All equipment and devices that have 74
the primary purpose of collecting solar energy and generating electricity 75
by photovoltaic effect that are located on the same parcel; (2) all 76
Raised Bill No. 7266
LCO No. 6789 4 of 8
equipment and devices that have the primary purpose of collecting solar 77
energy and generating electricity by photovoltaic effect that are located 78
on land that the current owner of any part of such land subdivided into 79
multiple parcels but was part of the same parcel prior to such 80
subdivision; and (3) all equipment and devices that have the primary 81
purpose of collecting solar energy and generating electricity by 82
photovoltaic effect that are located on adjoining parcels. Nothing in this 83
subsection shall be construed to limit tax liability or the definitions in 84
subsection (a) of this section. 85
Sec. 2. Subdivision (57) of section 12-81 of the general statutes is 86
repealed and the following is substituted in lieu thereof (Effective October 87
1, 2025): 88
(57) (A) (i) Any Class I renewable energy source, as defined in section 89
16-1, or hydropower facility described in subdivision (21) of subsection 90
(a) of section 16-1, installed for the generation of electricity where such 91
electricity is intended for private residential use or on a farm, as defined 92
in subsection (q) of section 1-1, provided (I) such installation occurs on 93
or after October 1, 2007, (II) the estimated annual production of such 94
source or facility does not exceed the estimated annual load for the 95
location where such source or facility is located, where such load and 96
production are estimated as of the date of installation of the source or 97
facility as indicated in the written application filed pursuant to 98
subparagraph [(E)] (G) of this subdivision, and (III) such installation is 99
for a single family dwelling, a multifamily dwelling consisting of two to 100
four units or a farm; (ii) any passive or active solar water or space 101
heating system; or (iii) any geothermal energy resource. In the case of 102
clause (i) of this subparagraph, the utilization of or participation in any 103
net metering or tariff policy or program implemented by the state or 104
ownership of such source or facility by a party other than the owner of 105
the real property upon which such source or facility is installed shall not 106
disqualify such source or facility from exemption pursuant to this 107
section. In the case of clause (ii) or (iii) of this subparagraph, such 108
exemption shall apply only to the amount by which the assessed 109
Raised Bill No. 7266
LCO No. 6789 5 of 8
valuation of the real property equipped with such system or resource 110
exceeds the assessed valuation of such real property equipped with the 111
conventional portion of the system or resource; 112
(B) For assessment years commencing on and after October 1, 2013, 113
any Class I renewable energy source, as defined in section 16-1, 114
hydropower facility described in subdivision (21) of subsection (a) of 115
section 16-1, or solar thermal or geothermal renewable energy source, 116
installed for generation or displacement of energy, provided (i) such 117
installation occurs on or after January 1, 2010, (ii) such installation is for 118
commercial or industrial purposes, (iii) the nameplate capacity of such 119
source or facility does not exceed the load for the location where such 120
generation or displacement is located, and (iv) such source or facility is 121
located in a distressed municipality, as defined in section 32-9p, with a 122
population between one hundred twenty-five thousand and one 123
hundred thirty-five thousand; 124
(C) For assessment years commencing on and after October 1, 2013, 125
any municipality may, upon approval by its legislative body or in any 126
town in which the legislative body is a town meeting, by the board of 127
selectmen, abate up to one hundred per cent of property tax for any 128
Class I renewable energy source, as defined in section 16-1, hydropower 129
facility described in subdivision (21) of subsection (a) of section 16-1, or 130
solar thermal or geothermal renewable energy source, installed for 131
generation or displacement of energy, provided (i) such installation 132
occurs between January 1, 2010, and December 31, 2013, (ii) such 133
installation is for commercial or industrial purposes, (iii) the nameplate 134
capacity of such source or facility does not exceed the load for the 135
location where such generation or displacement is located, and (iv) such 136
source or facility is not located in a municipality described in 137
subparagraph (B) of this subdivision; 138
(D) [For] Subject to the provisions of subparagraph (E) of this 139
subdivision, for assessment years commencing on and after October 1, 140
2014, any (i) Class I renewable energy source, as defined in section 16-1, 141
Raised Bill No. 7266
LCO No. 6789 6 of 8
other than a nuclear power generating facility, (ii) hydropower facility 142
described in subdivision (21) of subsection (a) of section 16-1, or (iii) 143
solar thermal or geothermal renewable energy source, installed for 144
generation or displacement of energy, provided (I) such installation 145
occurs on or after January 1, 2014, (II) is for commercial or industrial 146
purposes, (III) the nameplate capacity of such source or facility does not 147
exceed the load for the location where such generation or displacement 148
is located or the aggregated load of the beneficial accounts for any Class 149
I renewable energy source participating in virtual net metering 150
pursuant to section 16-244u, and (IV) in the case of clause (iii) of this 151
subparagraph, such exemption shall apply only to the amount by which 152
the assessed valuation of the real property equipped with such source 153
exceeds the assessed valuation of such real property equipped with the 154
conventional portion of the source; 155
(E) For assessment years commencing on and after October 1, 2025, 156
the exemption provided for under clause (i) of subparagraph (D) of this 157
subdivision shall apply only to equipment and devices that have the 158
primary purpose of generating electricity and shall not apply to any real 159
property on which such equipment and devices are located or installed; 160
(F) For assessment years commencing on and after October 1, 2025, 161
any Class I renewable energy source consisting of equipment and 162
devices that have the primary purpose of collecting solar energy and 163
generating electricity by photovoltaic effect. The exemption under this 164
subparagraph shall apply only to equipment and devices that have the 165
primary purpose of generating electricity and shall not apply to any real 166
property on which such equipment and devices are located or installed; 167
[(E)] (G) Any person claiming [the] an exemption provided in this 168
subdivision for any assessment year shall, on or before the first day of 169
November in such assessment year, file with the assessor or board of 170
assessors in the town in which such hydropower facility, Class I 171
renewable energy source, solar thermal or geothermal renewable 172
energy source or passive or active solar water, [or] space heating system 173
Raised Bill No. 7266
LCO No. 6789 7 of 8
or geothermal energy resource or solar photovoltaic system is located, a 174
written application claiming such exemption. Such application shall be 175
made on a form prepared for such purpose by the Secretary of the Office 176
of Policy and Management, in consultation with the Connecticut 177
Association of Assessing Officers and the Connecticut Green Bank 178
established pursuant to section 16-245n, and shall include, but not be 179
limited to, a statement of the estimated annual load and production of a 180
source or facility described in clause (i) of subparagraph (A) of this 181
subdivision as of the date of the installation of such source or facility. 182
Said secretary shall make such application available to the public on the 183
Internet web site of the Office of Policy and Management. Failure to file 184
such application in the manner and form as provided by the secretary 185
within the time limit prescribed shall constitute a waiver of the right to 186
such exemption for such assessment year. Such application shall not be 187
required for any assessment year following that for which the initial 188
application is filed, provided if such hydropower facility, Class I 189
renewable energy source, solar thermal or geothermal renewable 190
energy source or passive or active solar water, [or] space heating system 191
or geothermal energy resource or solar photovoltaic system is altered in 192
a manner [which] that would require a building permit, such alteration 193
shall be deemed a waiver of the right to such exemption until a new 194
application, applicable with respect to such altered source, is filed and 195
the right to such exemption is established as required initially. [In the 196
event that] If a person owns more than one such source, [or] facility or 197
system in a municipality, such person may file a single application 198
identifying each source, [or] facility or system; 199
[(F)] (H) For assessment years commencing on and after October 1, 200
2015, any municipality may, by vote of its legislative body or, in a 201
municipality where the legislative body is a town meeting, by vote of 202
the board of selectmen, abate up to one hundred per cent of the property 203
taxes due for any tax year, for not longer than the term of the power 204
purchase agreement, with respect to any Class I renewable energy 205
source, as defined in section 16-1, that is the subject of such power 206
Raised Bill No. 7266
LCO No. 6789 8 of 8
purchase agreement approved by the Public Utilities Regulatory 207
Authority pursuant to section 16a-3f; 208
This act shall take effect as follows and shall amend the following
sections:
Section 1 July 1, 2025 New section
Sec. 2 October 1, 2025 12-81(57)
Statement of Purpose:
To establish a uniform solar capacity tax on solar photovoltaic systems.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
underlined.]