Renewable Energy

Intended audience: Operators of renewable energy generation and storage facilities.

Starting Jan. 1, 2025, there is a new personal property tax exemption for the state portion of property tax on all qualified personal property owned by a qualifying renewable energy facility.

Renewable energy facilities that are granted the personal property tax exemption must also pay new excise taxes based on the generation or storage capacity of the facilities.

Intended audience: People who buy, sell, or install solar systems.

If you buy or sell qualified solar energy systems capable of generating 500 kilowatts, or less, the exemptions and refund program you can use ended Sept. 30, 2017.

The exemptions and refund program also expired on your payments for labor and installation of qualified machinery and equipment.

Buyer information

To qualify for the exemption, you must have:

Intended audience: sellers and installers of solar energy systems, consumers.

A sales and use tax exemption for purchases and installation of solar energy systems that produce at least one kilowatt (kW), but no more than 100 kW AC of electricity is available July 1, 2019, through Dec. 31, 2029.

Sellers/installers of renewable energy systems

A new bill (E2SSB 5116) provides a 100% sales and use tax exemption on purchases of machinery and equipment used directly in a solar energy system if:

Intended audience: producers and sellers of renewable natural gas

Effective July 28, 2019, the production and sale of renewable natural gas is no longer taxable under the public utility tax. The production and sale of all renewable natural gas, regardless of use, is subject to business and occupation (B&O) tax.

How do taxes apply?

Sales of renewable natural gas to consumers are subject to retailing B&O tax and retail sales tax.