House Bill No. 5442 amends the property tax exemption provisions for Class I renewable energy sources, specifically targeting solar photovoltaic systems. The bill repeals and replaces subdivision (57) of section 12-81, introducing new criteria for property tax exemptions. Key insertions include stipulations that installations for private residential use or on farms must occur after October 1, 2007, and that their estimated annual production should not exceed the estimated annual load for the location. Additionally, municipalities are granted the authority to abate up to 100% of property tax for certain commercial or industrial renewable energy installations, contingent upon meeting specific criteria, including installation dates and capacity limits.

Furthermore, the bill modifies exemption requirements for assessment years post-October 1, 2014, and introduces new provisions for Class I renewable energy sources installed after January 1, 2025. It clarifies that exemptions apply solely to equipment for generating electricity, excluding the real property on which they are installed. The bill also establishes a new tax structure for solar photovoltaic systems effective from July 1, 2026, requiring owners to pay an annual tax based on system capacity. It includes provisions for tax exemptions on specific land types and allows municipalities to stabilize or freeze taxes for solar system owners. The language changes involve the deletion of certain provisions and the insertion of new definitions and requirements, reflecting a comprehensive update to the taxation and assessment of renewable energy systems in the state.