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The U.S. Department of Energy and the North Carolina Clean Energy Technology Center are excited to announce that a new, modernized DSIRE is under construction. The new version of DSIRE will offer significant improvements over the current version, including expanded data accessibility and an array of new tools for site users. The new DSIRE site will be available in December 2014. Staff are currently working hard on the new version of DSIRE but are also maintaining the content of the current version of DSIRE. Thank you for your continued support and patience during this transition. We hope you are as excited for December as we are!

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California

California

Incentives/Policies for Renewables & Efficiency

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Property Tax Exclusion for Solar Energy Systems   

Last DSIRE Review: 12/20/2012
Program Overview:
State: California
Incentive Type: Property Tax Incentive
Eligible Renewable/Other Technologies: Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Solar Thermal Process Heat, Photovoltaics, Solar Mechanical Energy
Applicable Sectors: Commercial, Industrial, Residential
Amount:100% of system value; 75% of system value exemption for dual-use equipment
Maximum Incentive:Not specified.
Expiration Date:12/31/16
Web Site: http://www.boe.ca.gov/proptaxes/gase.htm
Authority 1:
Expiration Date:
Cal Rev & Tax Code ยง 73
12/31/16
Authority 2:
Date Enacted:
Guidelines for Active Solar Energy Systems New Construction Exclusion
11/15/2012
Summary:

Note: The California State Board of Equalization (BOE) approved new guidelines for the Active Solar Energy Systems New Construction Exclusion. The guidelines clarify that the exclusion applies to qualified locally assessed commercial, industrial, and utility-scale systems.

Section 73 of the California Revenue and Taxation Code allows a property tax exclusion for certain types of solar energy systems installed between January 1, 1999, and December 31, 2016. This section was amended by AB 1451 in September 2008 to include the construction of an active solar energy system incorporated by an owner-builder in the initial construction of a new building that the owner-builder does not intend to occupy or use. This only applies if the owner-builder did not already receive an exclusion for the same active solar energy system and only if the initial purchaser purchased the new building prior to that building becoming subject to reassessment to the owner-builder. ABX1-15 of 2011 clarified that systems installed through sale-leaseback arrangements or partnership flip structures can benefit from this exclusion. Click here and here for Letters to Assessors from the State Board of Equalization that further explain the impact of ABX1-15.   

Qualifying active solar energy systems are defined as those that "are thermally isolated from living space or any other area where the energy is used, to provide for the collection, storage, or distribution of solar energy." These include solar space conditioning systems, solar water heating systems, active solar energy systems, solar process heating systems, photovoltaic (PV) systems, and solar thermal electric systems, and solar mechanical energy. Solar pool heating systems and solar hot-tub-heating systems are not eligible.

Components included under the exclusion include storage devices, power conditioning equipment, transfer equipment, and parts. Pipes and ducts that are used to carry both solar energy and energy derived from other sources qualify for the exemption only to the extent of 75% of their full cash value. Likewise, dual-use equipment for solar-electric systems qualifies for the exclusion only to the extent of 75% of its value.

System owners should contact the applicable county assessor's office for further information. Click here for a listing of County Assessor offices in California, and here for a December 2008 letter to the assessor that further clarifies the terms of the exclusion.


 
Contact:
  Tax Specialist / BOE
California State Board of Equalization
P.O. Box 942879
Sacramento, CA 94279-0090
Phone: (800) 400-7115
Web Site: http://www.boe.ca.gov
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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2013 - 2014 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.