An Act to Allow Municipalities to Tax Personal Solar Energy Equipment Under 5 Megawatts
Maine Legislature, Session 131, LD 1153
Committee Amendment CA_A_H855 (House)
Amends: 36 MRSA §655, 36 MRSA §656

COMMITTEE AMENDMENT " f\ " to H.P. 725, L,D. 1153, "An Act to Allow
Municipalities to Tax Personal Solar Energy Equipment Under 5 Megawatts"
Amend the bill by striking out the title and substituting the following:
'An Act Regarding Municipal Taxation of Certain Solar Energy Equipment'
Amend the bill by striking out everything after the enacting clause and inserting the
following:
'See. 1. 36 MRSA §655, sub-§l, ^T, as amended by PL 2019, c. 440, §2, is further
amended to read;
T, Trail-grooming equipment registered under Title 12, section 13113; asd
Sec. 2. 36 MRSA §655, sub-§l, ^U, as amended by PL 2021, c. 181, Pt. C, §2, is
further amended to read:
U. Solar and wind energy equipment that generates heat or electricity if all of the
energy is:
(1) Used on the site where the property is located; or
(2) Transmitted through the facilities of a transmission and distribution utility? and
a utility customer or customers receive a utility bill credit for the energy generated
by the equipment pursuant to Title 3 5-A.
On or before April 1st of the first property tax year for which a taxpayer claims an
exemption under this paragraph, the taxpayer claiming the exemption shall file a report
with the assessor. The report must identify the property for which the exemption is
claimed and must be made on a form prescribed by the State Tax Assessor or a
substitute form approved by the State Tax Assessor, The State Tax Assessor shall
furnish copies of the form to each municipality in the State and make the forms
2 available to taxpayers .
This paragraph applies to solar energy equipment for property tax years beeinning
before April 1. 2025: and
COMMITTEE AMENDMENT
^QS COMMITTEE AMENDMENT " (\ " to H,P. 725. L.D. 1153
Sec. 3. 36 MRSA §655, sub-§l, ^V is enacted to read;
V. For orooertv tax years beginning on or after April 1. 2025. solar energy equipment
that generates heat or electricity if:
(I) All of the energy is used on the site where the^property isjocated;
f2) The equipment is collocated with a net energy billmg customer that is or net
energy billine customers that are subscribed to at least 50% ofjhefacilitv'^output;
or
(D All of the energy is transmitted through the facilities of a transmission and
distribution utility and a utility customer or customers receive a utility bill credit
for the energy generated by the equipment pursuant to Title 3 5-A. section 3209-A
or 3209-B and the eenerator of electricity entered into afully executed
interconnection agreement with a transmission and distributionutiUtY priorto June
1.2024.
On or before April 1st of the first property tax year for which ajaxpayer cLaims_an
exemption under this paragraph, the taxpayer claiming the exemption shall file a report
with the assessor. The report must identify the prouerty for which the exemption is
claimed and must be made on a form prescribed by the jitate Tax Assessor or a.
substitite form aooroved by the State Tax Assessor. __The State Tax Assessor shall
furnish copies of the form to each municinality in the State and make the forms
available to taxpayers.
Sec. 4. 36 MR8A §656, sub-§l, ^K, as amended by PL 2021, c. 181, Pt, C, §3, is
further amended to read;
K. Solar and wind energy equipment that generates heat or electricity if all of the
energy is;
(1) Used on the site where the property is located; or
(2) Transmitted through the facilities of a transmission and distribution utility;- and
a utility customer or customers receive a utility bill credit for the energy generated
by the equipment pursuant to Title 3 5-A,
On or before April 1st of the first property tax year for which a taxpayer claims an
0 exemption under this paragraph, the taxpayer claiming the exemption shall file a report
with the assessor. The report must identify the property for which the exemption is
claimed and must be made on a form prescribed by the State Tax Assessor or a
substitute form approved by the State Tax Assessor. The State Tax Assessor shall
furnish copies of the form to each municipality in the State and make the forms
5 available to taxpayers .
6 This oaraeraoh applies to solar energy equipment for wowrtv tax years beguming
before Aorill, 2025.
Sec. 5. 36 MRSA §656, sub-§l, ^L is enacted to read:
L, For property tax years beginning on or after April 1,2025, solar energy equipment
that generates heat or electricityjf;.
CD All of the energy isusedonthesitewhere the property is located;
COMMITTEE AMENDMENT
^QS COiMMITTEE AMENDMENT " ^" to H,P. 725, L.D. 1 153
(2') The equipment is collocated with a net energy billing customer that is or net
energy billing customers that are subscribed to at least 50% of the facility's output;
or
C3') All of the energy is transmitted through the facilities of a transmission and
distoibution utility and ajitili&c pr customers receive a utility bill credit
for the energy generated by the equipment pursuant to Title 3 5-A. section 3209-A
or 3209-B and the generator of electricity entered into a fully executed
interconnection agreement with a transmission and distribution utility prior to June
1.2024.
On or before April 1st of the first orooertv tax year for which a taxpayer claims an
exemption under this paragraph, the taxpayer claiming the exemption shall file a reaort
with the assessor. The report must identify the prooerty foovhich the exemBtion is
claimed and must be made on a form prescribed by the State Tax Assessor or a
substitute form approved by the State Tax Assessor, The State Tax Assessor shall
furnish copies of the form to each municipalitv m the State and make the forms
available to taxpayers ,
Sec. 6. State Tax Assessor duties. By January 1, 2025, the State Tax Assessor
shall update the Department of Administrative and Financial Services, Bureau of Revenue
Services' solar energy equipment exemption information bulletin to reflect any changes
made to relevant laws after December 31, 2023 , The assessor shall also establish a general
method of valuation for commercial solar arrays similar to the general method of valuation
for residential solar arrays and include infonnation about the method of valuation in the
bulletin. To update the bulletin, the assessor shall consult with municipal assessors,
members of the solar industry and representatives of State Government.'
Amend the bill by relettering or renumbering any nonconsecutive Part letter or section
number to read consecutively,
SUMMARY
This amendment changes the requu'ements for personal and real estate property tax
exemptions for certain solar energy'equipment for property tax years beginning on or after
April 1, 2025, After that date, solar energy equipment is exempt from property taxation if:
1, The energy it produces is used on site;
2. The equipment is collocated with a net energy billing customer or customers
subscribed to at least 50% of the energy produced on site; or
3. The energy the equipment produces is transmitted through an electric utility and
accounted for using a bill credit mechanism and the generator of electricity had a fully
6 executed interconnection agreement prior to June 1,2024,
The amendment also requires the State Tax Assessor to update the solar energy
equipment exemption information bulletin of the Department of Administrative and
Financial Services, Bureau of Revenue Services to reflect changes made to relevant laws
COMMITTEE AMENDMENT
COMMITTEE AMENDMENT " (^ " to H.P. 725, L.D. 1153
after December 31, 2023 and to establish a general method of valuation for commercial
solar arrays.
FISCAL NOTE REQmRED
(See attached)
COMMITTEE AMENDMENT
Revised; 03/18/24 ^?<=-
LD 1153 LR 1513(02)
An Act to Allow Municipalities to Tax Personal Solar Energy Equipment Under 5 Megawatts
Fiscal Note for Bill as Amended by Committee Amendment 'pj-'
Committee: Taxation
Fiscal Note Required: Yes
Fiscal Note
Projections Projections
FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Net Cost (Savings)
General Fund
Appropriations/AHocations
General Fund
$0
$0
$0
$0
$0 ($200,000)
$0 ($200,000)
Fiscal Detail and Notes
This bill changes eligiblity requirements for the property tax exemption for renewable energy equipment for property
tax years beginning on or after April 1, 2025. These changes are expected to reduce eligibility for the exemption.
Beginning in fiscal year 2026-27, there will be a reduction in the General Fund appropriations required for state
reimbursement to municipalities for revenue loss from the property tax exemption.
LR1513(02) - Fiscal Note - Page 1 of 1