DSIRE: Incentives by State: Incentives in CT

DSIRE: Incentives by State: Incentives in CT: "Local Option for Property Tax

Last DSIRE Review: 09/16/2004

Incentive Type: Property Tax Exemption
Eligible Technologies: Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Photovoltaics, Wind, Hydroelectric, Fuel Cells, Cogeneration
Applicable Sectors: Commercial, Industrial, Residential
Amount: Varies
Max. Limit: Varies
Terms: Applies to the first 15 assessment years following construction for some technologies
Authority 1: C.G.S. Ch. 203, Sec.12-81 @ 56, 57, 62, 63
Expiration Date: 10/1/06

Summary:
The state of Connecticut allows municipalities the option of offering property tax exemptions for certain renewable energy systems. Such systems include solar space and water heating, photovoltaics, wind systems, fuel cells, micro-hydro and co-generation systems. Adoption of this exemption varies from one municipality to another. In some cases, the exemption applies to the total value of the qualifying renewable energy system and can be applied to residential, commercial, and industrial property.

In the case of Class I renewable energy sources, defined as 'energy derived from solar power, wind power, a fuel cell, methane gas from landfills, or a biomass facility, provided such facility begins operating on or after July 1, 1998, and such biomass is cultivated and harvested in a sustainable manner,' and for hydropower systems, the exemption is for residential applications and may apply to the total value of the equipment. Solar electric systems are an exception, as the exemption may apply to any building type. For other technologies, the exemption may only apply to the increased value of the system as compared to conventional systems.

Exemptions may be allowed for passive solar energy heating or cooling systems, hybrid systems, and co-generation systems in any building type.

Contact your local tax assessor's office for more information."