Planning and Development Committee
JOINT FAVORABLE REPORT
Bill No.: HB-6106
AN ACT CONCERNING THE PROPERTY TAX EXEMPTION FOR CERTAIN
RENEWABLE ENERGY SOURCES AND NONRESIDENTIAL HYDROPOWER
Title: FACILITIES.
Vote Date: 3/2/2021
Vote Action: Joint Favorable
PH Date: 2/3/2021
File No.: 69
Disclaimer: The following JOINT FAVORABLE Report is prepared for the benefit of the
members of the General Assembly, solely for purposes of information, summarization and
explanation and does not represent the intent of the General Assembly or either chamber
thereof for any purpose.
SPONSORS OF BILL:
Rep. Joseph P. Gresko, 121st Dist.
Rep. David Michel, 146th Dist.
REASONS FOR BILL:
Current C.G.S. 12-81(57)(A) allegedly had the original intention to exempt solar systems
from property taxes even when they fed electricity back to the provider. However, some
municipalities have taxed residential solar systems, so the bill aims to clarify existing
language to more clearly enforce the property tax exemption.
RESPONSE FROM ADMINISTRATION/AGENCY:
N/A
NATURE AND SOURCES OF SUPPORT:
David Giordano, Government Relations & Business Development- Doosan Fuel Cell
America, Inc: Voiced support for the bill. Doosan fuel cells have been critical in reducing
greenhouse gas emissions, and have proven reliable when there are electrical outages.
However, it is claimed, "our project developers believe that clearer language is called for to
eliminate any ambiguity in the current statute as it relates to non-residential applications. For
example, we have experienced problems with projects at hospitals and universities due to the
way the statute is being interpreted locally."
Arthur Helmus, Executive Committee- Sierra Club Connecticut Chapter: Only in favor of
the intent to increase sustainability. Testimony recommends that the bill should allow property
owners to exceed their previous annual power load by an extra 20%, as the power needs of
the property will become more electrified in the future. Currently, the bill would not allow
newly electrified properties to exceed their previous load. "HB 6106 should be
designed to account for the electricity use of the future, not be bound by the electricity use of
the past."
Meghan Nutting, Executive Vice President of Policy and Communications at Sunnova
Energy Corp: Voiced support. The tax exemptions in Connecticut General Statutes 12-
81(57) make Power Purchase Agreements (PPAs), and thus Sunnova's products
economically attractive and feasible. However, some local tax assessors have allegedly
disregarded the tax exemptions provided by C.G.S. 12-81(57)(A) for PV systems (solar
panels) associated with Sunnova. The assessors claim the PV systems should be taxed
because excess energy gives the property owners tax credits, and the PV systems are
'business property" owned by Sunnova. Testimony claims current law did not aim to offset
net-metering credits with denying property tax exemptions. Sunnova believes HB 6106
clarifies current law exempting Sunnova products from certain taxes.
Kyle Wallace, Senior Manager of Public Policy at Sunrun, Inc: Voiced support. " H.B.
6106 adds clarifying language to the existing exemptions in C.G.S. 12-81(57)(A) and (D)
that should resolve any perceived ambiguity regarding the legislatures intent to exempt
residential solar systems from being subject to property tax." The testimony explains how
arguments to tax the solar systems are not valid, because any electricity ultimately goes to
the public. Testimony states 75% of residential solar systems utilize third-party ownership,
making the sustainable energy affordable. A 2019 letter from then-Senate Majority Leader
Bob Duff is attached, explaining that C.G.S. 12-81(57)(A) intended for behind-the-meter
solar power to be exempt from property tax.
Laura Hoydick, Mayor of Town of Stratford: Voiced support that the bill would further
clarify property tax exemptions in existing statute.
NATURE AND SOURCES OF OPPOSITION:
Betsy Gara, Executive Director of Connecticut Council of Small Towns: Voiced
opposition. COST is concerned that new property tax exemptions will damage town's abilities
to provide services, especially with the impact of Covid-19. COST acknowledges ambiguities
in existing statute, however, those denied a property tax exemption should not be reimbursed
for paid property taxes on solar systems.
Reported by: Colin Savino Date: 3/15/2021
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