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North Carolina House Bill H729

North Carolina 2025-2026 Regular Session

North Carolina House Bill H729 Compare Versions

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11 GENERAL ASSEMBLY OF NORTH CAROLINA
22 SESSION 2025
3-H 2
3+H 1
44 HOUSE BILL 729
5-Committee Substitute Favorable 4/15/25
5+
66
77 Short Title: Farmland Protection Act. (Public)
8-Sponsors:
9-Referred to:
8+Sponsors: Representatives Dixon, Howard, and Riddell (Primary Sponsors).
9+For a complete list of sponsors, refer to the North Carolina General Assembly web site.
10+Referred to: Agriculture and Environment, if favorable, Finance, if favorable, Rules, Calendar,
11+and Operations of the House
1012 April 3, 2025
11-*H729 -v-2*
13+*H729 -v-1*
1214 A BILL TO BE ENTITLED 1
13-AN ACT TO REPEAL THE PROPERTY TAX EXCLUS ION FOR SOLAR ENERGY 2
14-ELECTRIC SYSTEMS. 3
15-The General Assembly of North Carolina enacts: 4
16-SECTION 1. G.S. 105-275(45) is repealed. 5
17-SECTION 2. This act becomes effective July 1, 2025, and applies to taxes imposed 6
18-for taxable years beginning on or after that date. 7
15+AN ACT TO CHANGE THE PROPERTY TAX EXCLUS ION FOR SOLAR ENERGY 2
16+ELECTRIC SYSTEMS, TO PROHIBIT THE CONSTR UCTION OF NEW 3
17+UTILITY-SCALE SOLAR FACILITIES THAT ARE NOT QUALIFYING FACILITIES 4
18+UNDER PURPA, AND TO REQUIRE FINANCIAL AS SURANCE FOR EXISTING 5
19+SOLAR ENERGY FACILITIES. 6
20+The General Assembly of North Carolina enacts: 7
21+SECTION 1.(a) G.S. 105-275(45) reads as rewritten: 8
22+"§ 105-275. Property classified and excluded from the tax base. 9
23+The following classes of property are designated special classes under Article V, Sec. 2(2), 10
24+of the North Carolina Constitution and are excluded from tax: 11
25+… 12
26+(45) Eighty percent (80%) Forty percent (40%) of the appraised value of a solar 13
27+energy electric system. For purposes of this subdivision, the term "solar 14
28+energy electric system" means all equipment used directly and exclusively for 15
29+the conversion of solar energy to electricity." 16
30+SECTION 1.(b) This section becomes effective July 1, 2025, and applies to taxes 17
31+imposed for taxable years beginning on or after that date. 18
32+SECTION 2.(a) G.S. 62-110.1 is amended by adding a new subsection to read: 19
33+"(a1) The Commission shall not issue a certificate of public convenience and necessity for 20
34+a utility-scale solar project, as defined in G.S. 130A-309.240(a)(6), that is not a qualifying small 21
35+power production facility under the federal Public Utility Regulatory Policy Act, as defined in 22
36+18 C.F.R. § 292.203(a), unless the utility-scale solar project is to be sited on property meeting 23
37+any of the following criteria: 24
38+(1) The property is a brownfields property as defined in G.S. 130A-310.31, and 25
39+the developer of the project enters into a brownfields agreement with the 26
40+Department of Environmental Quality pursuant to G.S. 130A-310.32. 27
41+(2) The property is not currently being used for agricultural or horticultural 28
42+production. 29
43+(3) The property is timberland that has been clear-cut harvested and is not in 30
44+production at the time of application." 31
45+SECTION 2.(b) This section is effective when it becomes law and applies to 32
46+applications for a certificate of public convenience and necessity for a utility-scale solar project 33
47+received on or after that date. 34 General Assembly Of North Carolina Session 2025
48+Page 2 House Bill 729-First Edition
49+SECTION 3. Section 4 of S.L. 2023-58 reads as rewritten: 1
50+"SECTION 4. This act becomes effective as follows: 2
51+(1) Section 2(a) of this act is effective when it becomes law, except as follows: 3
52+a. The requirements for decommissioning and registration established 4
53+under G.S. 130A-309.240(b) and (e), respectively, as enacted by 5
54+Section 2(a) of this act, become effective November 1, 2025, and apply 6
55+to utility-scale solar projects constructed prior to or after that date. The 7
56+owner of a utility-scale solar project shall register with the Department 8
57+as follows: (i) by November 1, 2025, or at least 90 days prior to the 9
58+commencement of construction of the project if the project is 10
59+constructed after November 1, 2025; and (ii) at least 90 days prior to 11
60+commencement of rebuild or expansion of a utility-scale solar project. 12
61+b. The requirements for submittal of a decommissioning plan and 13
62+financial assurance established under G.S. 130A-309.240(c) and (d), 14
63+respectively, as enacted by Section 2(a) of this act, become effective 15
64+November 1, 2025, December 1, 2026, and shall only apply to (i) 16
65+utility-scale solar projects for which applications for certificates of 17
66+public convenience and necessity are pending or submitted on or after 18
67+the effective date of this act and (ii) utility-scale solar projects that are 19
68+generating solar energy or are interconnected to a transmission facility 20
69+on the date this act becomes effective, only if the project is rebuilt or 21
70+expanded, as those terms are defined by G.S. 130A-309.240(a)(2) and 22
71+(a)(4), after the effective date of this act, in which case the project shall 23
72+be subject to the requirements of G.S. 130A-309.240(c) and (d). 24
73+utility-scale solar projects constructed prior to or after that date. The 25
74+owner of a utility-scale solar project shall submit a decommissioning 26
75+plan and establish financial assurance (i) by November 1, 2025, or 27
76+prior to commencement of construction of the project if the project is 28
77+constructed after November 1, 2025, and (ii) prior to commencement 29
78+of rebuild or expansion of a utility-scale solar project.by December 1, 30
79+2026. 31
80+(2) The remainder of this act is effective when it becomes law." 32
81+SECTION 4. Except as otherwise provided, this act is effective when it becomes 33
82+law. 34