Solar & Battery Regulation & Incentive Programs

Qualified Energy Property Tax Exemption for Projects 250 kW or Less

Program Overview


Category:
Financial Incentive
Program Type:
Property Tax Incentive
Implementing Sector:
State
State:
Ohio
Eligible Storage Technologies:
Geothermal Electric, Solar Thermal Electric, Solar Photovoltaics, Wind (All), Biomass, Combined Heat & Power, Fuel Cells using Non-Renewable Fuels, Wind (Small), Hydroelectric (Small), Anaerobic Digestion, Fuel Cells using Renewable Fuels
Website:
http://development.ohio.gov/bs/bs_qepte.htm
Incentive Amount:
100% exemption
Eligible System Size:
250 kW or less
Administrator:
Ohio Development Services Agency
Applicable Sectors:
Commercial, Investor-Owned Utility, Municipal Utilities, Cooperative Utilities
Start Date:
01/01/2010
Last Updated:
07/11/2020

Summary

Note: According to the Ohio Development Services Agency website, the owner or lessee subject to sale leaseback transaction must apply to Development Services Agency on or before December 31, 2015  to qualify for this tax credit.

Ohio's Renewable and Advanced Energy Project Property Tax Exemption, enacted with the passage of Ohio S.B. 232 in the summer of 2010, exempts qualified energy projects in Ohio from public utility tangible personal property taxes and real property taxes. Before passage of S.B. 232, a renewable energy facility in Ohio that sold electricity to a third-party was considered a "public utility" for tax purposes.

Per Ohio Revision Code 5709.53, qualified energy systems of 250 kilowatts (kW) or less will not be subject to the payment in lieu of property tax. For qualified energy projects larger than 250 kW, see the DSIRE entry Qualified Energy Property Tax Exemption for Projects over 250 kW (Payment in Lieu) for additional details.

Energy facilities with nameplate capacity of 250 kilowatts (kW) or less (AC) are permanently exempt from public utility tangible personal property tax and real property taxes. Energy facilities are defined as interconnected solar, wind, or other tangible property used to generate electricity. Under this law, the interconnection equipment, cables, devices, and the land (limited to up to 1/2 acre per wind turbine) are also exempt. Energy facilities built after January 1, 2010 are eligible for this treatment.

Visit the Ohio Development Services Agency's web site for additional information, implementation documents and program documents.


Authorities

NameEnacted DateEffective DateExpired Date
ORC 5709.5306/17/2010