Az Solar Panel Tax

AzSunAzSun Registered Users Posts: 8
http://www.azcentral.com/business/consumer/articles/20140226industry-fights-bill-would-tax-solar-panels.html?nclick_check=1

What is next, my attic insulation, double pane windows, how about the shade tree. Actions like this confirm solar has arrived. This is why it is more important to vote in the primaries than the general election.

Comments

  • BB.BB. Super Moderators, Administrators Posts: 32,204 admin
    Re: Az Solar Panel Tax

    That link would not work for me unless I went through Google:
    The solar industry is fighting a bill introduced by Rep. John Allen, R-Scottsdale, that would tax solar panels that are leased by homeowners. Current Arizona property tax law states that rooftop solar panels used to generate electricity on site for a home or business are not assessed property tax. But the Department of Revenue last year issued a determination that leased solar panels, the fastest growing segment of the industry by far, should be assessed property tax.
    The Department of Revenue found the actual owners of those systems are the companies such as SolarCity that offer the leases, or their investors, and they are not using the power “on-site” the same as a customer who buys solar panels for a home or business. The state has not begun billing those solar-panel owners for the taxes owed on panels, but could without a clarification. Two bills were introduced at the Legislature this session to clarify the law.

    Allen’s proposal, House Bill 2595, aligns with the Department of Revenue and clarifies that the owners of the solar panels would be assessed taxes, regardless if the electricity is being used on site.
    Solar industry officials said that Arizona Public Service Co., which tried to increase the bills of solar customers last year, proposed the bill, which the utility denies.
    So it is not APS at this time--It is the Solar Leasing Companies looking to keep a tax break.

    In many states, solar power is subject to property tax (which would make some systems uneconomic). Other states, like California specifically exempt (for now) Solar Power systems.

    -Bill
    Near San Francisco California: 3.5kWatt Grid Tied Solar power system+small backup genset
  • solarixsolarix Solar Expert Posts: 713 ✭✭
    Re: Az Solar Panel Tax

    Anybody know what sort of property taxes the utilities pay on their generation facilities?
  • SolarPoweredSolarPowered Solar Expert Posts: 626 ✭✭✭
    Re: Az Solar Panel Tax
    BB. wrote: »
    That link would not work for me unless I went through Google:


    So it is not APS at this time--It is the Solar Leasing Companies looking to keep a tax break.

    In many states, solar power is subject to property tax (which would make some systems uneconomic). Other states, like California specifically exempt (for now) Solar Power systems.

    -Bill

    It should remain exempt, renewable energy systems depreciate faster than a kitchen bathroom remodel.

    Funny this convo was brought up though. I'm dealing with a group of realators and bankers that are looking into financing systems in escrow, no need for PPA, or lease term agreement, and the solar gets financed at 3~5% rather than the ridiculous 20 year 55% term financing through PPA, or leasing. The client that closes on that escrow would still collect the tax credit, and the home has a higher assesment value, while being tax exempt. Huge win, win.
  • solar_davesolar_dave Solar Expert Posts: 2,384 ✭✭✭✭
    Re: Az Solar Panel Tax
    BB. wrote: »
    That link would not work for me unless I went through Google:
    The solar industry is fighting a bill introduced by Rep. John Allen, R-Scottsdale, that would tax solar panels that are leased by homeowners. Current Arizona property tax law states that rooftop solar panels used to generate electricity on site for a home or business are not assessed property tax. But the Department of Revenue last year issued a determination that leased solar panels, the fastest growing segment of the industry by far, should be assessed property tax.
    The Department of Revenue found the actual owners of those systems are the companies such as SolarCity that offer the leases, or their investors, and they are not using the power “on-site” the same as a customer who buys solar panels for a home or business. The state has not begun billing those solar-panel owners for the taxes owed on panels, but could without a clarification. Two bills were introduced at the Legislature this session to clarify the law.

    Allen’s proposal, House Bill 2595, aligns with the Department of Revenue and clarifies that the owners of the solar panels would be assessed taxes, regardless if the electricity is being used on site.
    Solar industry officials said that Arizona Public Service Co., which tried to increase the bills of solar customers last year, proposed the bill, which the utility denies.
    BB. wrote: »
    So it is not APS at this time--It is the Solar Leasing Companies looking to keep a tax break.

    In many states, solar power is subject to property tax (which would make some systems uneconomic). Other states, like California specifically exempt (for now) Solar Power systems.

    -Bill

    Don't believe everything APS says, they lied before about financing anti solar adds before the ACC meeting. It would not shock me that some under the table dealing is going on. I think they are getting pretty ruthless on how to prevent more solar.

    Hopefully TUSK and others can hold the line on them until the next ACC election. I am pretty sure the current ACC board is going to be in trouble next time around.
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