Property Tax Assessment for Commercial Wind Farms (Pennsylvania)

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Summary

Last modified on February 12, 2015.

Financial Incentive Program

Place Pennsylvania

Name Property Tax Assessment for Commercial Wind Farms
Incentive Type Property Tax Incentive
Applicable Sector Commercial, Industrial, Agricultural
Eligible Technologies Wind
Active Incentive Yes

Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs
Amount 100% of system value exempted, but provides alternative valuation method















Maximum Incentive None










Program Administrator Administered at county level

Date added to DSIRE 2006-12-19
Last DSIRE Review 2014-11-25



References DSIREDatabase of State Incentives for Renewables and Efficiency[1]


Summary

Pennsylvania enacted legislation in November 2006 providing that wind turbines and related equipment (including towers and foundations) may not be counted by tax assessors when setting property values.* However, the law states that the valuation of real property used for the purpose of wind-energy generation "shall be developed by the county assessor utilizing the income capitalization approach to value." This valuation is determined by the capitalized value of the land-lease agreements, supplemented by a sales comparison data approach as deemed necessary by county assessors. Lessees or lessors must provide relevant, non-proprietary lease and lease-income information to county assessors by September 1 of each year.


In 2010, S.B. 918 consolidated and amended property tax assessment laws in Pennsylvania. The provisions governing the assessment of wind energy facilities were relocated at this time, but not changed in a substantive way. Click here for local tax information from the Pennsylvania Department of Community and Economic Development.


*Although the language of the statute is somewhat unclear on this point, the law is apparently not intended to address property tax assessments of residential scale wind energy systems. With a lack of clear guidance from the state on this issue, assessment methodologies for residential wind systems may vary from county to county.


Incentive Contact

Contact Name Public Information - PA DOR
Department Pennsylvania Department of Revenue
Division Taxpayer Service & Information Center
Address P.O. Box 280610

Place Harrisburg, Pennsylvania
Zip/Postal Code 17128-0610
Phone (717) 787-1064
Phone 2 (717) 787-8201


Website http://www.revenue.state.pa.us
     
     

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

Authority 1: 53 Pa.C.S. § 8811 & 8842
Date Effective 2007-01-28
Date Enacted 2006-11-29



















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

References

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