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HB05442

Property Tax Rules for Certain Renewable Energy Systems

Last scannedAug 25, 2026, 6:19 AM

In one sentence

This law updates rules about property tax breaks for specific renewable energy systems used in homes, farms, and businesses.

What it does

  • Keeps a full property tax break for Class I renewable energy sources installed on single-family homes, small multi-unit buildings (2-4 units), or farms if the system produces no more electricity than is needed at that location.
  • Allows towns to vote to give up to 100% of property taxes as a break for large commercial or industrial renewable systems based on power purchase agreements approved by state regulators.
  • Changes the rule so that starting in October 2025, tax breaks for certain solar photovoltaic projects apply only to the equipment itself and not the land it sits on.
  • Requires people who want these tax breaks to file a written application with their town assessor by November 1 of each assessment year.
  • States that changing a system in a way that needs a building permit cancels the current tax break until a new application is filed.

Who it affects

  • Home owners and farm operators who install renewable energy systems for their own use
  • Businesses with large solar or wind projects eligible for specific exemptions or agreements
  • Town assessors and legislative bodies that handle property tax records

Limits and unknowns

  • The official text provided is truncated and cuts off before listing all details about how long power purchase agreement tax breaks last or specific approval steps.
  • Some exemptions listed apply only to systems installed after certain dates (such as January 1, 2014) or in specific types of municipalities.

Plain language

Terms to know

Class I renewable energy source
Energy systems like wind, solar, or water power defined by state law.
Property tax exemption
A rule that stops the government from charging property taxes on specific items or land.
Power purchase agreement
A contract where one party agrees to buy electricity generated by another party for a set time, which can be used as the basis for tax breaks in some towns.

Official record

Sources

Validated
Official bill pageIntroduced textOfficial digestCurrent bill textStored full record

Official summary

To specify the applicability of (1) a property tax exemption for certain Class I renewable energy sources and authorize municipalities to amend their 2025 grand list accordingly, and (2) certain tax agreements related to solar photovoltaic systems.

Official activity

Bill history

  1. Signed by the Governor
  2. Transmitted to the Secretary of State
  3. Transmitted by Secretary of the State to Governor
  4. Public Act 26-134LCO
  5. Senate Adopted House Amendment Schedule A
  6. Senate Passed as Amended by House Amendment Schedule A
  7. In Concurrence
  8. Favorable Report, Tabled for the Calendar, Senate
  9. Senate Calendar Number 515
  10. File Number 757LCO
  11. House Adopted House Amendment Schedule A 4954
  12. House Passed as Amended by House Amendment Schedule A
  13. Immediate Transmittal to the Senate
  14. Reported Out of Legislative Commissioners' OfficeLCO
  15. Favorable Report, Tabled for the Calendar, House
  16. House Calendar Number 441
  17. File Number 666LCO
  18. Referred to Office of Legislative Research and Office of Fiscal Analysis 04/15/26 5:00 PMLCO
  19. Filed with Legislative Commissioners' OfficeLCO
  20. Joint FavorableFIN