Lawmakers on Monday sent for the governor’s signature legislation exempting renewable energy installations at businesses from municipal property taxes.
The House’s 119-14 vote came after the Senate approved the measure 21-12 on April 24.
While the measure was seen as a way to improve investment in renewable energy in Connecticut, the bill’s chances were in doubt because it would have further eroded municipal budgets, which also are expected to see reductions in their state aid.
The need for the measure came to light after the first round of the state’s Zero-emissions and Low-emissions Renewable Energy Credit, or ZREC/LREC, last year. Many of the businesses that won awards for solar projects learned afterward that the property taxes on the installation would offset any energy savings.
The legislation applies to all renewable energy installations at businesses, although the majority in Connecticut are either solar or fuel cells.
“Now that this reform is passed, our clients can enjoy the significant financial and environmental benefits of a solar array without worrying about any unforeseen property tax consequences,” George Ford, senior energy consultant with Pennsylvania-based Energy Systems & Installation, whose clients won five ZREC awards, told HartfordBusiness.com Monday. “This just furthers how strongly we feel that the Connecticut ZREC program is one of the strongest programs on the East Coast.”
