Connecticut Senate Bill SB00420

Connecticut 2018 Regular Session

• Introduced: 3/6/18
• Refer: 3/6/18

Caption

An Act Repealing The Commercial Solar Tax Exemption.

Impact

One significant impact of SB00420 is that it could lead to increased taxation for commercial entities utilizing solar energy. By eliminating tax exemptions that incentivized the use of solar technology, businesses may reconsider their investment in renewable energy initiatives. This shift could negatively affect the state's goal of enhancing renewable energy use, thereby slowing down environmental progress and potential job creation in the solar sector.

Summary

SB00420 seeks to repeal the existing commercial solar tax exemption. The bill is aimed at modifying Section 12-81 of the General Statutes concerning tax exemptions for renewable energy sources, specifically targeting the Class I renewable energy sources and hydropower facilities installed for commercial or industrial purposes. The repeal of this exemption is anticipated to bring about changes in tax liabilities for businesses involved in solar energy generation, potentially increasing their operational costs.

Contention

The bill has sparked debate among stakeholders in the renewable energy community and the business sector. Proponents of the repeal argue that removing exemptions will level the playing field among energy producers, while opponents contend that the repeal undermines efforts to promote sustainable energy practices and could discourage future investments in renewable energy technologies. The discussion also highlights potential economic consequences, as businesses could face increased financial burdens.