en HB 1434 – Property tax exemption for solar energy equipment | NCRE

HB 1434 – Property tax exemption for solar energy equipment

For further details regarding this bill, please visit: https://lis.virginia.gov/cgi-bin/legp604.exe?201+sum+HB1434

Since 2016, commercial solar facilities in Virginia sized between 5MW and 150MW (AC) have been provided an 80% exemption from machinery & tools taxes with certain exclusions based on initial interconnection application dates. The original legislation sought to incentivize certified pollution control facilities in coordination with the Virginia Department of Mines, Minerals, and Energy, which is the authority that grants such status to qualifying applicants.

HB 1434 reduces this 80% exemption in two five-year intervals which begin from the date of commercial operation. The new bill maintains the 80% exemption for the first five years, lowering to a 70% exemption for the next five years, and finally a 60% exemption for all remaining years in service. The bill also extends the sunset date for this exemption from January 1st 2024 to July 1st 2030. Importantly, this reduction does not apply if the locality chooses to assess a revenue sharing option as provided by HB 1131. Note that this bill is identical to SB 763.