New Hampshire Senate Bill SB277

New Hampshire 2025 Regular Session

• Introduced: 1/23/25
• Refer: 1/23/25
• Report Pass: 2/12/25
• Report Pass: 3/18/25

Caption

Relative to the application of utility property taxes and statewide education property taxes to electric generating facilities.

Impact

The fiscal impact of SB277 may lead to a significant reduction in revenue for the Education Trust Fund starting in fiscal year 2028. The Department of Revenue Administration estimates that properties used for electricity generation will result in a revenue decrease of approximately $5.36 million in FY 2028 and $12.72 million in subsequent years. While the total amount of SWEPT remains statutorily set at $363 million, the bill may cause fluctuations in the tax base as certain utilities may shift from UPT liabilities to SWEPT obligations.

Summary

Senate Bill 277 (SB277) is designed to adjust the taxation framework for electric generating facilities in New Hampshire. The bill stipulates that facilities exempt from the Utility Property Tax (UPT) and paying a Payment in Lieu of Taxes (PILOT) to local municipalities will not be liable for the Statewide Education Property Tax (SWEPT) until their PILOT agreements expire or until July 1, 2032, whichever comes first. This change aims to provide financial relief and encourage the operation of renewable energy facilities without the burden of additional taxes at the state level.

Contention

Debate surrounding SB277 primarily focuses on its implications for local versus state taxation authority and the consequent effects on state education funding. Proponents argue that by exempting certain facilities from higher taxes, the bill promotes renewable energy development and can potentially attract more investment in clean energy projects. Conversely, opponents raise concerns that the bill could deplete essential funding for education, making it difficult for local governments to sustain financial support for public schools, thereby impacting education services across the state.