This bill introduces 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, it amends RSA 72 by adding a new section (RSA 72:74-b) that states if an electric generating facility is exempt from the utility property tax and has a PILOT agreement in effect as of January 1, 2027, it will not be liable for the state education tax until the PILOT agreement expires or until January 1, 2031, whichever comes first. Additionally, the bill includes provisions for how the state education tax may be incorporated into future PILOT agreements or paid separately, with the tax amount determined based on the imputed value of the facility.

Furthermore, the bill amends RSA 83-F to define property used for electricity generation as exempt from the utility property tax and requires owners of such properties to file an annual form detailing their utility and non-utility assets. It also clarifies that while these properties are exempt from the state education tax, they are still subject to local taxation as specified in RSA 72:74-b. The bill is set to take effect on July 1, 2027, and is expected to have an indeterminable fiscal impact on the Education Trust Fund, with potential revenue decreases starting in FY 2028.