Plain English Breakdown
The official digest lists two conflicting size limits (2 megawatts and 10 kilowatts) without indicating which is correct; both are noted in the summary to reflect this uncertainty.
Extending Property Tax Exclusion for Customer-Sited Active Solar Energy Systems
AB-2389 extends the property tax exclusion for adding customer-sited active solar energy systems through January 1, 2031.
What This Bill Does
- Extends the property tax exclusion for lien dates between January 1, 2027, and before January 1, 2031.
- Applies to customer-sited active solar energy systems with a size of less than or equal to 10 kilowatts (note: source text also lists 2 megawatts).
- Includes an exclusion for customer-sited active solar energy systems located on property owned by public entities.
- Requires that tax savings from solar systems on public entity property be used to maintain the affordability of, or reduce the cost of, future lease agreements.
- Limits the owner-builder exclusion to new buildings where the initial construction permit was issued before January 1, 2027.
Who It Names or Affects
- Owners adding customer-sited active solar energy systems
- Public entities such as schools or cities that install solar systems on their property
- Owner-builders constructing new buildings with integrated solar systems before January 1, 2027
Terms To Know
- Active solar energy system
- A device defined by existing law that uses sunlight to generate electricity or heat water.
- Customer-sited
- Solar systems installed on the property of the customer who will use them, including public entities.
- Lien date
- The specific day when a tax bill is officially created for that year's taxes.
Limits and Unknowns
- The state will not reimburse local agencies for property tax revenue lost due to this exclusion.
- Reimbursement for other costs mandated by the bill depends on a determination by the Commission on State Mandates.
- The official text contains conflicting size limits (2 megawatts vs. 10 kilowatts) that are unclear.