SB763: Local tax; amount of exemption for solar energy equipment.
Be it enacted by the General Assembly of Virginia:
1. That § 58.1-3660 of the Code of Virginia is amended and reenacted as follows:
§ 58.1-3660. Certified pollution control equipment and facilities.
A. Certified pollution control equipment and facilities, as defined herein, are hereby declared to be a separate class of property and shall constitute a classification for local taxation separate from other such classification of real or personal property and such property. Certified pollution control equipment and facilities shall be exempt from state and local taxation pursuant to Article X, Section 6 (d) of the Constitution of Virginia.
B. As used in this section:
"Certified pollution control equipment and
facilities" shall mean means any property, including real or
personal property, equipment, facilities, or devices, used primarily for the
purpose of abating or preventing pollution of the atmosphere or waters of the
Commonwealth and which the state certifying authority having jurisdiction with
respect to such property has certified to the Department of Taxation as having
been constructed, reconstructed, erected, or acquired in conformity with the
state program or requirements for abatement or control of water or atmospheric
pollution or contamination. Such property shall include, but is not limited to,
any equipment used to grind, chip, or mulch trees, tree stumps, underbrush, and
other vegetative cover for reuse as mulch, compost, landfill gas, synthetic or
natural gas recovered from waste or other fuel, and equipment used in
collecting, processing, and distributing, or generating electricity from,
landfill gas or synthetic or natural gas recovered from waste, whether or not
such property has been certified to the Department of Taxation by a state
certifying authority. Such property shall also include solar energy equipment,
facilities, or devices owned or operated by a business that collect, generate,
transfer, or store thermal or electric energy whether or not such property has
been certified to the Department of Taxation by a state certifying authority.
C. For solar photovoltaic (electric energy) systems, this exemption applies only to (i) projects equaling 20 megawatts or less, as measured in alternating current (AC) generation capacity, for which an initial interconnection request form has been filed with an electric utility or a regional transmission organization on or before December 31, 2018; (ii) projects equaling 20 megawatts or less, as measured in alternating current (AC) generation capacity, that serve any of the public institutions of higher education listed in § 23.1-100 or any private college as defined in § 23.1-105; (iii) 80 percent of the assessed value of projects for which an initial interconnection request form has been filed with an electric utility or a regional transmission organization (a) between January 1, 2015, and June 30, 2018, for projects greater than 20 megawatts or (b) on or after July 1, 2018, for projects greater than 20 megawatts and less than 150 megawatts, as measured in alternating current (AC) generation capacity, and that are first in service on or after January 1, 2017; (iv) projects equaling five megawatts or less, as measured in alternating current (AC) generation capacity, for which an initial interconnection request form has been filed with an electric utility or a regional transmission organization on or after January 1, 2019; and (v) 80 percent of the assessed value of all other projects equaling more than five megawatts and less than 150 megawatts, as measured in alternating current (AC) generation capacity for which an initial interconnection request form has been filed with an electric utility or a regional transmission organization on or after January 1, 2019.
D. The exemption for solar photovoltaic (electric
energy) projects greater than 20 five megawatts, as measured in
alternating current (AC) generation capacity, shall not apply to any such
project projects upon which construction begins after January 1, 2024
unless an application has been filed with the locality for the project before
July 1, 2030. For purposes of this section, "application has been
filed with the locality" means an applicant has filed an application for a
zoning confirmation from the locality for a by-right use or an application for
land use approval under the locality's zoning ordinance to include an
application for a conditional use permit, special use permit, special
exception, or other application as set out in the locality's zoning ordinance.
E. For pollution control equipment and facilities certified by the Virginia Department of Health, this exemption applies only to onsite sewage systems that serve 10 or more households, use nitrogen-reducing processes and technology, and are constructed, wholly or partially, with public funds. All such property as described in this definition shall not include the land on which such equipment or facilities are located.
"State certifying authority" shall mean
means the State Water Control Board or the Virginia Department of Health,
for water pollution; the State Air Pollution Control Board, for air pollution;
the Department of Mines, Minerals and Energy, for solar energy projects and for
coal, oil, and gas production, including gas, natural gas, and coalbed methane
gas; and the Virginia Waste Management Board, for waste disposal facilities,
natural gas recovered from waste facilities, and landfill gas production
facilities, and shall include any interstate agency authorized to act in place
of a certifying authority of the Commonwealth.
F. Notwithstanding any provision to the contrary, for any solar photovoltaic project described in clauses (iii) and (v) of subsection C for which an initial interconnection request form has been filed with an electric utility or a regional transmission organization on or after January 1, 2019, the amount of the exemption shall be as follows: 80 percent of the assessed value in the first five years in service after commencement of commercial operation, 70 percent of the assessed value in the second five years in service, and 60 percent of the assessed value for all remaining years in service.
2. The provisions of subsection F of § 58.1-3660 of the Code of Virginia, as amended by this act, shall not apply to any solar photovoltaic project on which a locality assesses a revenue share, if such revenue share is authorized by the General Assembly and imposed by a locality by ordinance.
Be it enacted by the General Assembly of Virginia:
1. That § 58.1-3660 of the Code of Virginia is amended and reenacted as follows:
§ 58.1-3660. Certified pollution control equipment and facilities.
A. Certified pollution control equipment and facilities, as defined herein, are hereby declared to be a separate class of property and shall constitute a classification for local taxation separate from other such classification of real or personal property and such property. Certified pollution control equipment and facilities shall be exempt from state and local taxation pursuant to Article X, Section 6 (d) of the Constitution of Virginia.
B. As used in this section:
"Certified pollution control equipment and
facilities" shall mean means any property, including real or
personal property, equipment, facilities, or devices, used primarily for the
purpose of abating or preventing pollution of the atmosphere or waters of the
Commonwealth and which the state certifying authority having jurisdiction with
respect to such property has certified to the Department of Taxation as having
been constructed, reconstructed, erected, or acquired in conformity with the
state program or requirements for abatement or control of water or atmospheric
pollution or contamination. Such property shall include, but is not limited to,
any equipment used to grind, chip, or mulch trees, tree stumps, underbrush, and
other vegetative cover for reuse as mulch, compost, landfill gas, synthetic or
natural gas recovered from waste or other fuel, and equipment used in
collecting, processing, and distributing, or generating electricity from,
landfill gas or synthetic or natural gas recovered from waste, whether or not
such property has been certified to the Department of Taxation by a state
certifying authority. Such property shall also include solar energy equipment,
facilities, or devices owned or operated by a business that collect, generate,
transfer, or store thermal or electric energy whether or not such property has
been certified to the Department of Taxation by a state certifying authority.
For solar photovoltaic (electric energy) systems, this exemption applies only
to (i) projects equaling 20 megawatts or less, as measured in alternating current
(AC) generation capacity, for which an initial interconnection request form has
been filed with an electric utility or a regional transmission organization on
or before December 31, 2018; (ii) projects equaling 20 megawatts or less, as
measured in alternating current (AC) generation capacity, that serve any of the
public institutions of higher education listed in § 23.1-100 or any private
college as defined in § 23.1-105; (iii) 80 percent of the assessed value of
projects for which an initial interconnection request form has been filed with
an electric utility or a regional transmission organization (a) between January
1, 2015, and June 30, 2018, for projects greater than 20 megawatts or (b) on or
after July 1, 2018, for projects greater than 20 megawatts and less than 150
megawatts, as measured in alternating current (AC) generation capacity, and
that are first in service on or after January 1, 2017; (iv) projects equaling
five megawatts or less, as measured in alternating current (AC) generation capacity,
for which an initial interconnection request form has been filed with an
electric utility or a regional transmission organization on or after January 1,
2019; and (v) 80 percent of the assessed value of all other projects equaling
more than five megawatts and less than 150 megawatts, as measured in
alternating current (AC) generation capacity for which an initial
interconnection request form has been filed with an electric utility or a
regional transmission organization on or after January 1, 2019. The exemption
for solar photovoltaic (electric energy) projects greater than 20 megawatts, as
measured in alternating current (AC) generation capacity, shall not apply to
any such project projects upon which construction begins after January
1, 2024 unless an application has been filed with the locality for the
project before July 1, 2030. For purposes of this section,
"application has been filed with the locality" means an applicant has
filed an application for a zoning confirmation from the locality for a by-right
use or an application for land use approval under the locality's zoning
ordinance, including an application for a conditional use permit, special use
permit, special exception, or other application as set out in the locality's
zoning ordinance. For pollution control equipment and facilities certified
by the Virginia Department of Health, this exemption applies only to onsite
sewage systems that serve 10 or more households, use nitrogen-reducing
processes and technology, and are constructed, wholly or partially, with public
funds. All such property as described in this definition shall not include the
land on which such equipment or facilities are located.
"State certifying authority" shall mean
means the State Water Control Board or the Virginia Department of Health,
for water pollution; the State Air Pollution Control Board, for air pollution;
the Department of Mines, Minerals and Energy, for solar energy projects and for
coal, oil, and gas production, including gas, natural gas, and coalbed methane
gas; and the Virginia Waste Management Board, for waste disposal facilities,
natural gas recovered from waste facilities, and landfill gas production
facilities, and shall include any interstate agency authorized to act in place
of a certifying authority of the Commonwealth.
C. Notwithstanding any provision to the contrary, for any solar photovoltaic project described in clauses (iii) and (v) of subsection B for which an initial interconnection request form has been filed with an electric utility or a regional transmission organization on or after January 1, 2019, the amount of the exemption shall be as follows: 80 percent of the assessed value in the first five years in service after commencement of commercial operation, 70 percent of the assessed value in the second five years in service, and 60 percent of the assessed value for all remaining years in service.
Be it enacted by the General Assembly of Virginia:
1. That § 58.1-3660 of the Code of Virginia is amended and reenacted as follows:
§ 58.1-3660. Certified pollution control equipment and facilities.
A. Certified pollution control equipment and facilities, as defined herein, are hereby declared to be a separate class of property and shall constitute a classification for local taxation separate from other such classification of real or personal property and such property. Certified pollution control equipment and facilities shall be exempt from state and local taxation pursuant to Article X, Section 6 (d) of the Constitution of Virginia.
B. As used in this section:
"Certified pollution control equipment and
facilities" shall mean means any property, including real or
personal property, equipment, facilities, or devices, used primarily for the
purpose of abating or preventing pollution of the atmosphere or waters of the
Commonwealth and which the state certifying authority having jurisdiction with
respect to such property has certified to the Department of Taxation as having
been constructed, reconstructed, erected, or acquired in conformity with the
state program or requirements for abatement or control of water or atmospheric
pollution or contamination. Such property shall include, but is not limited to,
any equipment used to grind, chip, or mulch trees, tree stumps, underbrush, and
other vegetative cover for reuse as mulch, compost, landfill gas, synthetic or
natural gas recovered from waste or other fuel, and equipment used in
collecting, processing, and distributing, or generating electricity from,
landfill gas or synthetic or natural gas recovered from waste, whether or not
such property has been certified to the Department of Taxation by a state
certifying authority. Such property shall also include solar energy equipment,
facilities, or devices owned or operated by a business that collect, generate,
transfer, or store thermal or electric energy whether or not such property has
been certified to the Department of Taxation by a state certifying authority.
For solar photovoltaic (electric energy) systems, this exemption applies only
to (i) projects equaling 20 megawatts or less, as measured in alternating
current (AC) generation capacity, for which an initial interconnection request
form has been filed with an electric utility or a regional transmission
organization on or before December 31, 2018; (ii) projects equaling 20
megawatts or less, as measured in alternating current (AC) generation capacity,
that serve any of the public institutions of higher education listed in §
23.1-100 or any private college as defined in § 23.1-105; (iii) 80 percent of
the assessed value in the first five years in service, 70 percent of the
assessed value in the second five years in service, and 60 percent of the
assessed value for all remaining years in service of projects for which an
initial interconnection request form has been filed with an electric utility or
a regional transmission organization (a) between January 1, 2015, and June 30,
2018, for projects greater than 20 megawatts or (b) on or after July 1, 2018,
for projects greater than 20 megawatts and less than 150 megawatts, as measured
in alternating current (AC) generation capacity, and that are first in service
on or after January 1, 2017; (iv) projects equaling five megawatts or less, as
measured in alternating current (AC) generation capacity, for which an initial
interconnection request form has been filed with an electric utility or a
regional transmission organization on or after January 1, 2019; and (v) 80
percent of the assessed value in the first five years in service, 70 percent
of the assessed value in the second five years in service, and 60 percent of
the assessed value for all remaining years in service of all other projects
equaling more than five megawatts and less than 150 megawatts, as measured in
alternating current (AC) generation capacity for which an initial
interconnection request form has been filed with an electric utility or a
regional transmission organization on or after January 1, 2019. The exemption
for solar photovoltaic (electric energy) projects greater than 20 megawatts, as
measured in alternating current (AC) generation capacity, shall not
apply only to projects upon which construction begins after January
1, 2024 for which an application has been filed with the locality before
July 1, 2030. For purposes of this section, "application has been
filed with the locality" means an applicant has filed an application for a
zoning confirmation from the locality for a by-right use or an application for
land use approval under the locality's zoning ordinance, including an
application for a conditional use permit, special use permit, special
exception, or other application as set out the locality's zoning ordinance.
For pollution control equipment and facilities certified by the Virginia
Department of Health, this exemption applies only to onsite sewage systems that
serve 10 or more households, use nitrogen-reducing processes and technology,
and are constructed, wholly or partially, with public funds. All such property
as described in this definition shall not include the land on which such
equipment or facilities are located.
"State certifying authority" shall mean
means the State Water Control Board or the Virginia Department of Health,
for water pollution; the State Air Pollution Control Board, for air pollution;
the Department of Mines, Minerals and Energy, for solar energy projects and for
coal, oil, and gas production, including gas, natural gas, and coalbed methane
gas; and the Virginia Waste Management Board, for waste disposal facilities,
natural gas recovered from waste facilities, and landfill gas production
facilities, and shall include any interstate agency authorized to act in place
of a certifying authority of the Commonwealth.
SENATE BILL NO. 763
Be it enacted by the General Assembly of Virginia:
1. That § 58.1-3660 of the Code of Virginia is amended and reenacted as follows:
§ 58.1-3660. Certified pollution control equipment and facilities.
A. As used in this section:
"Applied for interconnection" means, with respect to a solar photovoltaic (electric energy) system, the filing of an initial interconnection request form with an electric utility or a regional transmission organization.
"Megawatts" means megawatts as measured in alternating current (AC) generation capacity.
"State certifying authority" means the State Water Control Board or the Virginia Department of Health, for water pollution; the State Air Pollution Control Board, for air pollution; the Department of Mines, Minerals and Energy, for solar energy projects and for coal, oil, and gas production, including gas, natural gas, and coalbed methane gas; and the Virginia Waste Management Board, for waste disposal facilities, natural gas recovered from waste facilities, and landfill gas production facilities, and includes any interstate agency authorized to act in place of a certifying authority of the Commonwealth.
B. Certified
pollution control equipment and facilities, as defined herein,
in subsections C, D, and E, are hereby declared to be a separate
class of property and,
shall constitute a classification for local taxation separate from other such
classification of real or personal property and such property.
Certified pollution control equipment and facilities,
and, subject to the provisions of subsections C, D, and E, shall
be exempt from state and local taxation pursuant to Article X, Section 6 (d) of
the Constitution of Virginia.
B. As used in this
section:
C. 1. As
used in this subsection,"Certified
"certified pollution control equipment and facilities" shall mean means
any property, including real or personal property, equipment, facilities, or
devices, used primarily for the purpose of abating or preventing pollution of
the atmosphere or waters of the Commonwealth
and which the state certifying authority having jurisdiction with respect to
such property has certified to the Department of Taxation as having been
constructed, reconstructed, erected, or acquired in conformity with the state
program or requirements for abatement or control of water or atmospheric
pollution or contamination. Such
property shall include, but is not limited
to,
2. Certified pollution control equipment and facilities shall be eligible for the exemption provided pursuant to this section only if the state certifying authority having jurisdiction with respect to such equipment has certified to the Department of Taxation that such equipment has been constructed, reconstructed, erected, or acquired in conformity with the state program or requirements for abatement or control of water or atmospheric pollution or contamination or other applicable requirements; however, the certification requirement imposed by this subdivision shall not apply to equipment described in subsections D and E.
3. For certified pollution control equipment and facilities certified by the Virginia Department of Health, the exemption provided pursuant to this section applies only to onsite sewage systems that serve 10 or more households, use nitrogen-reducing processes and technology, and are constructed, wholly or partially, with public funds.
D. As
used in this subsection, "certified
pollution control equipment and facilities" means any
equipment used to grind, chip, or mulch trees, tree stumps, underbrush, and
other vegetative cover for reuse as mulch, compost, landfill gas, synthetic or
natural gas recovered from waste or other fuel, and equipment used in
collecting, processing, and distributing, or generating electricity from,
landfill gas or synthetic or natural gas recovered from waste, whether or not such property has been certified
to the Department of Taxation by a state certifying authority. Such property shall
also include
E.
1. As used in this subsection,
"certified pollution
control equipment and facilities" means
solar energy equipment, facilities, or devices owned or operated by a business
that collect, generate, transfer, or store thermal or electric energy whether or not such property has been certified to
the Department of Taxation by a state certifying authority.
2.
For solar photovoltaic (electric energy) systems, this the exemption provided pursuant to this section
applies only to (i) projects:
a. Projects
equaling 20 megawatts or less, as measured in
alternating current (AC) generation capacity, for which an
initial interconnection request form has been filed with an electric utility or
a regional transmission organization
that applied for interconnection on or before December 31,
2018; (ii) projects
b. Projects
equaling 20 megawatts or less, as measured in
alternating current (AC) generation capacity, that serve
any of the public institutions of higher education listed in § 23.1-100 or any
private college as defined in § 23.1-105;
(iii) 80
c.
Eighty percent of the assessed value of projects for which an initial interconnection request form
has been filed with an electric utility or a regional transmission organization (a) that applied for
interconnection (i) between January 1, 2015,
and June 30, 2018, for projects greater than 20 megawatts or (b)
(ii) on or after July 1, 2018, for projects greater than 20
megawatts and less than 150 megawatts, as measured in
alternating current (AC) generation capacity, and that are
first in service on or after January 1, 2017;
(iv) projects
d.
Projects equaling five megawatts or less, as measured in alternating current (AC)
generation capacity, for which an
initial interconnection request form has been filed with an electric utility or
a regional transmission organization
that applied for interconnection on or after January 1,
2019; and (v) 80
e. Eighty percent of the assessed value of all other projects
equaling more than
greater than five megawatts and less than 150 megawatts, as measured in alternating current (AC)
generation capacity for which an
initial interconnection request form has been filed with an electric utility or
a regional transmission organization
that applied for interconnection on or after January 1,
2019.
3. The exemption provided pursuant to this section for solar photovoltaic (electric energy) projects greater than five megawatts shall be reduced by multiplying the value of the exemption provided in subdivision 2 by an applicable percentage, as follows:
a. From the date commercial operation commences through the date five years after commercial operation commences, 80 percent;
b. From the day after the date five years after commercial operation commences through the date 10 years after commercial operation commences, 70 percent; and
c. From the day after the date 10 years after commercial operation commences through the date commercial operation ceases, 60 percent.
4.
The exemption provided pursuant to this section
for solar photovoltaic (electric energy) projects greater than 20
five megawatts, as measured in
alternating current (AC) generation capacity, shall not
apply to projects upon which construction begins after January 1, 2024
2030.
For pollution
control equipment and facilities certified by the Virginia Department of
Health, this exemption applies only to onsite sewage systems that serve 10 or
more households, use nitrogen-reducing processes and technology, and are
constructed, wholly or partially, with public funds. All
such property as described in this definition
F.
The exemption provided pursuant to this section shall not include apply to the land on which such
the certified pollution control equipment or
and facilities, as described in
subsections B, C, and E, are located.
"State
certifying authority" shall mean the State Water Control Board or the
Virginia Department of Health, for water pollution; the State Air Pollution
Control Board, for air pollution; the Department of Mines, Minerals and Energy,
for solar energy projects and for coal, oil, and gas production, including gas,
natural gas, and coalbed methane gas; and the Virginia Waste Management Board,
for waste disposal facilities, natural gas recovered from waste facilities, and
landfill gas production facilities, and shall include any interstate agency
authorized to act in place of a certifying authority of the Commonwealth.