Municipalities are allowed to exempt green buildings from property taxes. Properties must have commenced construction after January 1, 2013, have a value more than $10,000, and must meet certification standards for LEED, Green Globes, or an equivalent green building certification program. The exemption amount is
Tennessee offers tax credits and refunds to Certified Green Energy Production Facilities for equipment and machinery that store (and also generate) electricity using clean energy technologies, including thermal storage, geothermal storage, and hydrogen storage. To be eligible for the credit, facilities must make investments of
Wisconsin offers a sales and use tax exemption for up to 100% of the taxpayer’s liability from renewable energy products. Eligible renewable energy products must create electricity or heat from biomass, wind energy, solar energy, and biogas among other renewable energy sources.
Energy generation systems in the District of Columbia that rely solely on solar energy are 100% exempt from property tax, as long as the Chief Financial Officer of the company owning the property transfers $120,000 to the Renewable Energy Development Fund established by the District.
Manufacturers in Kentucky can be refunded for up to 100% of sales or use tax for new or replacement equipment for renewable energy and energy efficiency projects. Projects must result in a decrease in energy usage by at least 15%.
Minnesota law entirely exempts any system utilizing solar energy, including to heat water, buildings, or drive industrial processes, from sales tax. Minnesota Department of Revenue Form ST3 “Certificate of Exemption” can be used to claim the exemption.
Local governments in New Hampshire can offer local property tax exemptions for renewable generation facilities and energy storage systems. The exemption amount is determined by the assessed value of the system.
New York offers a property tax exemption for energy conservation improvements including solar thermal, biomethane, and thermal storage systems. Tax exemptions last for a period of 15 years. To qualify, systems must be constructed before January 1, 2030. Any qualifying system owned or controlled by
Texas provides an exemption from franchise tax for manufacturing companies who primarily produce, sell, or install solar or wind energy devices. Storage and thermal systems are included under this policy. This exemption is not capped.
This sales and use tax exemption applies to solar energy systems and components, as well as equipment used to produce, store, transport, compress, or blend green hydrogen, which can be created using biomass, geothermal, or other renewable energy sources.
