Local Option - Property Tax Exemption for Renewable Energy Systems (Connecticut)

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Last modified on February 12, 2015.

Financial Incentive Program

Place Connecticut

Name Local Option - Property Tax Exemption for Renewable Energy Systems
Incentive Type Property Tax Incentive
Applicable Sector Commercial, Industrial, Residential, Multi-Family Residential, Agricultural
Eligible Technologies Solar Water Heat, Solar Thermal Electric, Photovoltaics, Landfill Gas, Wind, Biomass, Hydroelectric, Geothermal Electric, Fuel Cells, Geothermal Heat Pumps, CHP/Cogeneration, Anaerobic Digestion, Wave Energy, Ocean Thermal, Fuel Cells using Renewable Fuels, Energy Storage
Active Incentive Yes

Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs
Amount Local Option

Program Administrator Connecticut Department of Revenue Services

Date added to DSIRE 2000-01-01
Last DSIRE Review 2014-12-12

References DSIRE[1]


Connecticut municipalities are authorized, but not required, to offer a property tax exemption lasting up to 15 years for qualifying cogeneration systems installed on or after July 1, 2007 (see Conn. Gen. Stat. § 12-81 (63)). Municipalities that adopt an ordinance to provide such an exemption may require a payment in lieu of taxes from the property owner.

Beginning in October 2013, a municipality may also adopt an ordinance to exempt commercial or industrial Class I renewable resources*, certain hydropower facilities**, or solar thermal or geothermal renewable energy resources. Only facilities installed between January 1, 2010 and December 31, 2013 are eligible for the exemption, and a facility capacity may not exceed the electricity load for the location. Systems installed after 2013 will be eligible for a statewide exemption.

An exemption claim must be filed with the assessor or board of assessors in the town in which the property is placed on or before the first day of November in the applicable assessment year. Applications are not required each year as long as no major alterations are made to the renewable energy system. Contact your local tax assessor's office for more information.

* A "Class I renewable energy source" is defined as “(A) energy derived from solar power, wind power, a fuel cell, methane gas from landfills, ocean thermal power, wave or tidal power, low emission advanced renewable energy conversion technologies, a run-of-the-river hydropower facility provided such facility has a generating capacity of not more than five megawatts, does not cause an appreciable change in the river flow, and began operation after July 1, 2003, or a sustainable biomass facility with an average emission rate of equal to or less than .075 pounds of nitrogen oxides per million BTU of heat input for the previous calendar quarter, except that energy derived from a sustainable biomass facility with a capacity of less than five hundred kilowatts that began construction before July 1, 2003, may be considered a Class I renewable energy source, or (B) any electrical generation, including distributed generation, generated from a Class I renewable energy source.

**Eligible hydropower facilities include "run-of-the-river hydropower facilities provided such a facility has a generating capacity of not more than 5 MW, does not cause an appreciable change in the riverflow, and began operation prior to July 1, 2003."

Incentive Contact

Contact Name Public Information
Department Connecticut Office of Policy and Management
Division Policy Development and Planning Division
Address 450 Capitol Avenue

Place Hartford, Connecticut
Zip/Postal Code 06106-1379
Phone (860) 418-6200
Phone 2 (800) 286-2214

Email OPMwebmaster@po.state.ct.us
Website http://www.opm.state.ct.us

Authorities (Please contact the if there are any file problems.)

Authority 1: Conn. Gen. Stat. § 12-81 (57) et seq.

Date Enacted 1977 (subsequently amended)

Authority 2: S.B. 203

Date Enacted 2013-06-03

  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]


  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency"