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OH SB232
Bill
AI Summary
SB 232 Summary
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Exempts tangible personal property of qualified energy projects using renewable energy resources from property taxation for tax years 2011-2012, with continuation in subsequent years if placed in service before January 1, 2013; projects using clean coal, advanced nuclear, or cogeneration technology exempt if placed in service before January 1, 2017, subject to county board approval for projects with 5+ megawatt capacity.
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Requires owners of exempt energy facilities to make annual service payments in lieu of taxes ranging from $6,000-$8,000 per megawatt of nameplate capacity (or $7,000 for solar projects) based on Ohio-domiciled employee ratios during construction, paid to county treasuries.
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Expands special improvement districts and municipal revolving loan programs to include energy efficiency improvements and customer-generated energy projects (wind, biomass, gasification facilities up to 250+ kilowatts) in addition to solar and geothermal projects.
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Prohibits using property tax exemptions in calculating alternative energy portfolio standard compliance costs; clarifies sales and use tax treatment of energy conversion equipment; establishes energy companies as public utilities subject to taxation on production equipment at 24% and other property at 85%.
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Mandates Public Utilities Commission study of reactive power conditions in the state with findings reported to legislature within one year of enactment.
Legislative Description
To exempt qualifying energy facilities from property taxation upon county approval, to require payments in lieu of taxes on the basis of each megawatt of production capacity of such facilities, to expand special improvement district energy improvement projects and the municipal solar energy revolving loan program law to include alternative energy, to address the treatment of energy efficiency savings and reductions in demand regarding certain energy projects, to prohibit the use of the exemption to determine the cost of compliance for the state's alternative energy portfolio standard, to clarify the sales and use tax treatment of related energy conversion equipment purchases, to specify that operators of such facilities are subject to the commercial activity tax, to require the Public Utilities Commission to study reactive power in the state, and to declare an emergency.
Renewable energy facilities-property tax exemption/payments in lieu of taxes
Last Action
Effective Date
6/17/2010