Existing property tax law excludes the construction or addition of any active solar energy system from the definition of “newly constructed” for the purposes of appraising the value of the real property. This exclusion was set to expire after the 2023-2024 fiscal year.
Senate Bill 1340 (SB 1340) extends the property tax exemption for the construction or addition of any active solar energy system. SB 1340 extends the exclusion of construction or addition of any active solar energy system from the definition of “newly constructed” for the purposes of appraising the value of real property through the end of the 2025-2026 fiscal year. This exclusion remains in effect only until there is a subsequent change in ownership, but an active solar energy system that qualifies for the exclusion before January 1, 2027, will continue to receive the exclusion until there is a subsequent change in ownership.
(SB 1340 amends Section 73 of the Revenue and Taxation Code.)