General Assembly Raised Bill No. 7266 proposes the establishment of a uniform solar capacity tax, effective July 1, 2025, targeting owners of solar photovoltaic systems with a capacity exceeding two megawatts. The tax will be calculated at a base rate of $12,000 multiplied by the system's megawatt capacity, with a 2% annual increase in the base amount for subsequent years. The bill also allows municipalities to enter agreements to stabilize or freeze the tax for certain owners, ensuring a predictable tax environment. Additionally, the bill repeals and replaces subdivision (57) of section 12-81 of the general statutes, clarifying the conditions under which Class I renewable energy sources and hydropower facilities can be exempt from taxation, focusing on installation dates and energy production limits.

Furthermore, the bill amends property tax exemptions for renewable energy sources, particularly for Class I renewable energy sources, hydropower facilities, and solar thermal or geothermal systems. It introduces provisions allowing municipalities to abate up to 100% of property taxes for these energy sources when installed for commercial or industrial purposes, contingent on specific conditions. The bill also modifies existing legal language by deleting certain provisions and inserting new ones to clarify exemption requirements, including a new application process due by November 1 of the assessment year and stipulations regarding power purchase agreements. Overall, the legislation aims to enhance the use of renewable energy by providing clearer tax incentives and requirements for municipalities and property owners.