HB 7206 Summary

• Expands property tax exemptions for Class I renewable energy sources and hydropower facilities installed on residential properties (single family, multifamily with 2-4 units, or farms) where estimated annual production does not exceed estimated annual load, effective October 1, 2019.

• Allows net metering participation and third-party ownership of residential renewable energy systems without disqualifying properties from tax exemptions.

• Exempts passive/active solar water and space heating systems and geothermal energy resources from property taxes, with exemptions applying only to the value exceeding conventional system costs.

• Permits municipalities to abate up to 100% of property taxes for non-residential renewable energy installations (installed after January 1, 2014) where nameplate capacity does not exceed location load, including virtual net metering arrangements.

• Requires written applications filed by November 1 annually with local assessors using a form prepared by the Secretary of the Office of Policy and Management, with failure to file constituting waiver of exemption for that year.