Property Tax Exemption for Renewable Energy Systems (Connecticut)

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Summary

Last modified on February 12, 2015.

Financial Incentive Program

Place Connecticut

Name Property Tax Exemption for Renewable Energy Systems
Incentive Type Property Tax Incentive
Applicable Sector Commercial, Industrial, Residential, Multi-Family Residential, Agricultural, (Note: exemption for Class I resources applies only to residential dwelling with four or fewer units and farms)
Eligible Technologies Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Photovoltaics, Landfill Gas, Wind, Biomass, Hydroelectric, Fuel Cells, Geothermal Heat Pumps, CHP/Cogeneration, Tidal Energy, Wave Energy, Ocean Thermal, Fuel Cells using Renewable Fuels
Active Incentive Yes

Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs
Amount 100% exemption for renewable energy property


























Program Administrator Connecticut Department of Revenue Services

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



References DSIRE[1]


Summary

Connecticut provides a property tax exemption for "Class I" renewable energy systems* and hydropower facilities** that generate electricity for private residential use. The exemption is available for systems installed on or after October 1, 2007, that serve farms, single-family homes or multi-family dwellings limited to four units. In addition, "any passive or active solar water or space heating system or geothermal energy resource" is exempt from property taxes, regardless of the type of facility the system serves.


Beginning in October 2014, commercial and industrial systems (meeting the same technology requirements as above) are also eligible for the property tax exemption. The exemption is available for properties installed on or after January 1, 2014, and the nameplate capacity cannot exceed the load for the location where the system is installed. Before October 2014, municipalities can choose to offer such an exemption (See a Local Option Property Tax Exemption). Commercial and industrial systems installed after Janury 1, 2010 and located in a "distressed municipality" with a population between 125,000 and 135,000 are eligible for the property tax exemption beginning in October 2013.



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]

References

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