CT HB07266

Creates a new annual tax of $11,000 per megawatt on solar photovoltaic systems exceeding 2 megawatts of nameplate capacity, paid to municipalities for 20 years, with a 2% annual increase starting July 1, 2027

Applies to solar systems approved on or after July 1, 2026, by the Connecticut Siting Council or local zoning authorities where generation capacity exceeds the on-site electrical load

Tax revenues become part of the municipality's general fund, with systems spanning multiple municipalities allocating tax payments proportionally based on nameplate capacity in each location

Municipalities may negotiate agreements to freeze or stabilize the tax rate for solar system owners

Modifies existing property tax exemptions for renewable energy sources, clarifying that exemptions apply only to electricity-generating equipment and not to the underlying real property (effective October 1, 2025)