This bill proposes a temporary exemption from the state education tax for certain electric generating facilities that are currently under a payment in lieu of taxes (PILOT) agreement. Specifically, if the PILOT agreement was in effect as of January 1, 2027, these facilities will not be liable for the state education tax until the agreement expires or until January 1, 2031, whichever comes first. The bill also allows for the state education tax to be included in a new PILOT agreement or paid separately, with the amount determined based on the imputed value of the facility as calculated by the Department of Revenue Administration. Additionally, the bill amends existing laws to define property used for electricity generation as exempt from the utility property tax.

The bill includes several key insertions and deletions to current law. It adds a new section (RSA 72:74-b) that outlines the conditions for the exemption from the state education tax, and it introduces a new subparagraph (RSA 83-F:1, V(g)) that defines the property used for electricity generation as exempt from the utility property tax. Furthermore, it requires owners of exempted properties to file an annual form detailing their utility and non-utility property. The bill is expected to have a fiscal impact, potentially decreasing revenue for the Education Trust Fund by an indeterminable amount starting in FY 2028, as it exempts certain properties from the utility property tax, which could lead to a significant reduction in tax revenue.

Statutes affected:
Introduced: 83-F:1, 83-F:5, 83-F:9