This bill proposes to amend the current statute regarding the valuation of renewable energy and storage equipment for property tax purposes. Under the current law, the full cash value (FCV) of such equipment is set at 20 percent of the depreciated cost, which is defined as the taxable original cost less depreciation. The bill introduces new provisions that establish different valuation criteria based on ownership and the initiation date of construction. Specifically, it sets the FCV at 100 percent of the depreciated cost for equipment not owned by or under an exclusive power purchase agreement with a public service corporation, and for equipment owned by such entities if construction began after December 31, 2029.

Additionally, the bill narrows the application of the current valuation method to only those renewable energy and storage equipment owned by or under an exclusive power purchase agreement with a public service corporation, provided that construction was initiated before January 1, 2030. The bill also clarifies that depreciation for determining the FCV shall not exceed 90 percent of the adjusted original cost, maintaining some aspects of the current law while updating the valuation methodology to reflect the new criteria.

Statutes affected:
Introduced Version: 42-14155
House Engrossed Version: 42-14155