Connecticut 2025 Regular Session

Connecticut House Bill HB07266 Compare Versions

Only one version of the bill is available at this time.

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3	3	LCO No. 6789 1 of 8
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5	5	General Assembly Raised Bill No. 7266
6	6	January Session, 2025
7	7	LCO No. 6789
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10	10	Referred to Committee on FINANCE, REVENUE AND
11	11	BONDING
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14	14	Introduced by:
15	15	(FIN)
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20	20	AN ACT ESTABLISHING A UNIFORM SOLAR CAPACITY TAX.
21	21	Be it enacted by the Senate and House of Representatives in General
22	22	Assembly convened:
23	23
24	24	Section 1. (NEW) (Effective July 1, 2025) (a) As used in this section: 1
25	25	(1) "Solar photovoltaic system" means equipment and devices that 2
26	26	(A) have the primary purpose of collecting solar energy and generating 3
27	27	electricity by photovoltaic effect, (B) have a nameplate capacity greater 4
28	28	than two megawatts of electricity, and (C) the nameplate capacity of 5
29	29	such equipment and devices exceeds the load for the location where 6
30	30	such generation is located; 7
31	31	(2) "Municipality" means any town, city, consolidated town and city 8
32	32	or consolidated town and borough; and 9
33	33	(3) "Uniform solar capacity tax year" means the annual accounting 10
34	34	period used to calculate the tax under this section, consisting of a 11
35	35	twelve-month period commencing on July first and ending the 12
36	36	following June thirtieth. 13
37	37	Raised Bill No. 7266
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43	43	(b) Except as provided in subsection (h) of this section, for uniform 14
44	44	solar capacity tax years commencing on and after July 1, 2026, each 15
45	45	person that owns a solar photovoltaic system in the state for generation 16
46	46	or displacement of energy shall pay an annual tax to the department of 17
47	47	finance of each municipality in which the system or any part thereof is 18
48	48	located, or, if the municipality does not have a department of finance, to 19
49	49	the tax collector for such municipality. For the uniform solar capacity 20
50	50	tax year commencing July 1, 2026, the tax shall be the product of the base 21
51	51	amount of twelve thousand dollars multiplied by the number of 22
52	52	megawatts, and any fractional portion thereof, of nameplate capacity for 23
53	53	each such system. Commencing with the uniform solar capacity tax year 24
54	54	commencing July 1, 2027, and each uniform solar capacity tax year 25
55	55	thereafter, the base amount shall be increased by two per cent. If a solar 26
56	56	photovoltaic system has multiple owners, each owner shall be jointly 27
57	57	and severally liable for the tax owed pursuant to this section. 28
58	58	(c) The Office of Policy and Management shall develop a form to be 29
59	59	submitted with the tax due under this section. Not later than July 31, 30
60	60	2025, the department of finance in each municipality, or, for any 31
61	61	municipality that does not have a department of finance, the tax 32
62	62	collector of such municipality, shall furnish such form upon request. 33
63	63	The tax imposed under this section shall be due and payable on the due 34
64	64	date or due dates of such return, as determined by the department of 35
65	65	finance or tax collector, as applicable. The department of finance or tax 36
66	66	collector, as applicable, may require a single annual payment of the tax 37
67	67	imposed under this section or may require semiannual or quarterly 38
68	68	installments of such payment. Such tax shall be due and collectible as 39
69	69	other property taxes and subject to the same liens and processes of 40
70	70	collection. 41
71	71	(d) The revenues produced by the tax imposed under this section 42
72	72	shall become part of the general revenue of the municipality in which 43
73	73	the tax is paid. 44
74	74	(e) If a solar photovoltaic system is located in more than one 45
75	75	Raised Bill No. 7266
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79	79	LCO No. 6789 3 of 8
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81	81	municipality, the tax shall be allocated between or among the 46
82	82	municipalities in proportion to the nameplate capacity of the solar 47
83	83	photovoltaic system located in each municipality. 48
84	84	(f) Whenever the tax imposed under this section is not paid when due 49
85	85	to the department of finance or tax collector, as applicable, in a 50
86	86	municipality, interest at the rate of one and one-half per cent per month 51
87	87	or fraction thereof shall accrue on such tax from the due date of such tax 52
88	88	until the date of payment. 53
89	89	(g) Any person claiming to be aggrieved by the action of a 54
90	90	department of finance or tax collector under this section may appeal the 55
91	91	tax to the Superior Court. Any person appealing the tax that pays a 56
92	92	portion of such tax during the pendency of such appeal and indicates 57
93	93	that such portion is paid "under protest" shall not be liable for any 58
94	94	interest on the tax, provided such person pays not less than seventy-five 59
95	95	per cent of the amount of the tax assessed by the municipality during 60
96	96	the time limits prescribed by the department of finance or tax collector, 61
97	97	as applicable, in such municipality in accordance with this section. 62
98	98	(h) (1) Any municipality acting through its board of selectmen, town 63
99	99	council, court of common council or other legislative body shall have 64
100	100	the power to enter into an agreement to freeze or stabilize the tax 65
101	101	imposed under this section for any owner of a solar photovoltaic system 66
102	102	located in such municipality, as provided in this subsection. 67
103	103	(2) With respect to any photovoltaic system located in more than one 68
104	104	municipality, such agreement shall only pertain to the tax that is 69
105	105	allocated to the municipality that enters into such agreement, in 70
106	106	accordance with the provisions of subsection (e) of this section. 71
107	107	(i) For purposes of calculating the nameplate capacity of a solar 72
108	108	photovoltaic system, the following shall be deemed to be part of the 73
109	109	same solar photovoltaic system: (1) All equipment and devices that have 74
110	110	the primary purpose of collecting solar energy and generating electricity 75
111	111	by photovoltaic effect that are located on the same parcel; (2) all 76
112	112	Raised Bill No. 7266
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118	118	equipment and devices that have the primary purpose of collecting solar 77
119	119	energy and generating electricity by photovoltaic effect that are located 78
120	120	on land that the current owner of any part of such land subdivided into 79
121	121	multiple parcels but was part of the same parcel prior to such 80
122	122	subdivision; and (3) all equipment and devices that have the primary 81
123	123	purpose of collecting solar energy and generating electricity by 82
124	124	photovoltaic effect that are located on adjoining parcels. Nothing in this 83
125	125	subsection shall be construed to limit tax liability or the definitions in 84
126	126	subsection (a) of this section. 85
127	127	Sec. 2. Subdivision (57) of section 12-81 of the general statutes is 86
128	128	repealed and the following is substituted in lieu thereof (Effective October 87
129	129	1, 2025): 88
130	130	(57) (A) (i) Any Class I renewable energy source, as defined in section 89
131	131	16-1, or hydropower facility described in subdivision (21) of subsection 90
132	132	(a) of section 16-1, installed for the generation of electricity where such 91
133	133	electricity is intended for private residential use or on a farm, as defined 92
134	134	in subsection (q) of section 1-1, provided (I) such installation occurs on 93
135	135	or after October 1, 2007, (II) the estimated annual production of such 94
136	136	source or facility does not exceed the estimated annual load for the 95
137	137	location where such source or facility is located, where such load and 96
138	138	production are estimated as of the date of installation of the source or 97
139	139	facility as indicated in the written application filed pursuant to 98
140	140	subparagraph [(E)] (G) of this subdivision, and (III) such installation is 99
141	141	for a single family dwelling, a multifamily dwelling consisting of two to 100
142	142	four units or a farm; (ii) any passive or active solar water or space 101
143	143	heating system; or (iii) any geothermal energy resource. In the case of 102
144	144	clause (i) of this subparagraph, the utilization of or participation in any 103
145	145	net metering or tariff policy or program implemented by the state or 104
146	146	ownership of such source or facility by a party other than the owner of 105
147	147	the real property upon which such source or facility is installed shall not 106
148	148	disqualify such source or facility from exemption pursuant to this 107
149	149	section. In the case of clause (ii) or (iii) of this subparagraph, such 108
150	150	exemption shall apply only to the amount by which the assessed 109
151	151	Raised Bill No. 7266
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155	155	LCO No. 6789 5 of 8
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157	157	valuation of the real property equipped with such system or resource 110
158	158	exceeds the assessed valuation of such real property equipped with the 111
159	159	conventional portion of the system or resource; 112
160	160	(B) For assessment years commencing on and after October 1, 2013, 113
161	161	any Class I renewable energy source, as defined in section 16-1, 114
162	162	hydropower facility described in subdivision (21) of subsection (a) of 115
163	163	section 16-1, or solar thermal or geothermal renewable energy source, 116
164	164	installed for generation or displacement of energy, provided (i) such 117
165	165	installation occurs on or after January 1, 2010, (ii) such installation is for 118
166	166	commercial or industrial purposes, (iii) the nameplate capacity of such 119
167	167	source or facility does not exceed the load for the location where such 120
168	168	generation or displacement is located, and (iv) such source or facility is 121
169	169	located in a distressed municipality, as defined in section 32-9p, with a 122
170	170	population between one hundred twenty-five thousand and one 123
171	171	hundred thirty-five thousand; 124
172	172	(C) For assessment years commencing on and after October 1, 2013, 125
173	173	any municipality may, upon approval by its legislative body or in any 126
174	174	town in which the legislative body is a town meeting, by the board of 127
175	175	selectmen, abate up to one hundred per cent of property tax for any 128
176	176	Class I renewable energy source, as defined in section 16-1, hydropower 129
177	177	facility described in subdivision (21) of subsection (a) of section 16-1, or 130
178	178	solar thermal or geothermal renewable energy source, installed for 131
179	179	generation or displacement of energy, provided (i) such installation 132
180	180	occurs between January 1, 2010, and December 31, 2013, (ii) such 133
181	181	installation is for commercial or industrial purposes, (iii) the nameplate 134
182	182	capacity of such source or facility does not exceed the load for the 135
183	183	location where such generation or displacement is located, and (iv) such 136
184	184	source or facility is not located in a municipality described in 137
185	185	subparagraph (B) of this subdivision; 138
186	186	(D) [For] Subject to the provisions of subparagraph (E) of this 139
187	187	subdivision, for assessment years commencing on and after October 1, 140
188	188	2014, any (i) Class I renewable energy source, as defined in section 16-1, 141
189	189	Raised Bill No. 7266
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195	195	other than a nuclear power generating facility, (ii) hydropower facility 142
196	196	described in subdivision (21) of subsection (a) of section 16-1, or (iii) 143
197	197	solar thermal or geothermal renewable energy source, installed for 144
198	198	generation or displacement of energy, provided (I) such installation 145
199	199	occurs on or after January 1, 2014, (II) is for commercial or industrial 146
200	200	purposes, (III) the nameplate capacity of such source or facility does not 147
201	201	exceed the load for the location where such generation or displacement 148
202	202	is located or the aggregated load of the beneficial accounts for any Class 149
203	203	I renewable energy source participating in virtual net metering 150
204	204	pursuant to section 16-244u, and (IV) in the case of clause (iii) of this 151
205	205	subparagraph, such exemption shall apply only to the amount by which 152
206	206	the assessed valuation of the real property equipped with such source 153
207	207	exceeds the assessed valuation of such real property equipped with the 154
208	208	conventional portion of the source; 155
209	209	(E) For assessment years commencing on and after October 1, 2025, 156
210	210	the exemption provided for under clause (i) of subparagraph (D) of this 157
211	211	subdivision shall apply only to equipment and devices that have the 158
212	212	primary purpose of generating electricity and shall not apply to any real 159
213	213	property on which such equipment and devices are located or installed; 160
214	214	(F) For assessment years commencing on and after October 1, 2025, 161
215	215	any Class I renewable energy source consisting of equipment and 162
216	216	devices that have the primary purpose of collecting solar energy and 163
217	217	generating electricity by photovoltaic effect. The exemption under this 164
218	218	subparagraph shall apply only to equipment and devices that have the 165
219	219	primary purpose of generating electricity and shall not apply to any real 166
220	220	property on which such equipment and devices are located or installed; 167
221	221	[(E)] (G) Any person claiming [the] an exemption provided in this 168
222	222	subdivision for any assessment year shall, on or before the first day of 169
223	223	November in such assessment year, file with the assessor or board of 170
224	224	assessors in the town in which such hydropower facility, Class I 171
225	225	renewable energy source, solar thermal or geothermal renewable 172
226	226	energy source or passive or active solar water, [or] space heating system 173
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233	233	or geothermal energy resource or solar photovoltaic system is located, a 174
234	234	written application claiming such exemption. Such application shall be 175
235	235	made on a form prepared for such purpose by the Secretary of the Office 176
236	236	of Policy and Management, in consultation with the Connecticut 177
237	237	Association of Assessing Officers and the Connecticut Green Bank 178
238	238	established pursuant to section 16-245n, and shall include, but not be 179
239	239	limited to, a statement of the estimated annual load and production of a 180
240	240	source or facility described in clause (i) of subparagraph (A) of this 181
241	241	subdivision as of the date of the installation of such source or facility. 182
242	242	Said secretary shall make such application available to the public on the 183
243	243	Internet web site of the Office of Policy and Management. Failure to file 184
244	244	such application in the manner and form as provided by the secretary 185
245	245	within the time limit prescribed shall constitute a waiver of the right to 186
246	246	such exemption for such assessment year. Such application shall not be 187
247	247	required for any assessment year following that for which the initial 188
248	248	application is filed, provided if such hydropower facility, Class I 189
249	249	renewable energy source, solar thermal or geothermal renewable 190
250	250	energy source or passive or active solar water, [or] space heating system 191
251	251	or geothermal energy resource or solar photovoltaic system is altered in 192
252	252	a manner [which] that would require a building permit, such alteration 193
253	253	shall be deemed a waiver of the right to such exemption until a new 194
254	254	application, applicable with respect to such altered source, is filed and 195
255	255	the right to such exemption is established as required initially. [In the 196
256	256	event that] If a person owns more than one such source, [or] facility or 197
257	257	system in a municipality, such person may file a single application 198
258	258	identifying each source, [or] facility or system; 199
259	259	[(F)] (H) For assessment years commencing on and after October 1, 200
260	260	2015, any municipality may, by vote of its legislative body or, in a 201
261	261	municipality where the legislative body is a town meeting, by vote of 202
262	262	the board of selectmen, abate up to one hundred per cent of the property 203
263	263	taxes due for any tax year, for not longer than the term of the power 204
264	264	purchase agreement, with respect to any Class I renewable energy 205
265	265	source, as defined in section 16-1, that is the subject of such power 206
266	266	Raised Bill No. 7266
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272	272	purchase agreement approved by the Public Utilities Regulatory 207
273	273	Authority pursuant to section 16a-3f; 208
274	274	This act shall take effect as follows and shall amend the following
275	275	sections:
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277	277	Section 1 July 1, 2025 New section
278	278	Sec. 2 October 1, 2025 12-81(57)
279	279
280	280	Statement of Purpose:
281	281	To establish a uniform solar capacity tax on solar photovoltaic systems.
282	282
283	283	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
284	284	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
285	285	underlined.]
286	286