ABX1 15 solar incentive extension is expected to help address the fiscal emergency declared by Gov. Brown in January.
California Governor Jerry Brown signed ABX1 15, authored by Assemblymember Jerry Hill (D-San Mateo), which makes revisions to existing law and broadens the tax incentives available for solar projects.
Assemblymember Hill stated that he authored the bill
to ensure that thousands of existing and future solar installation projects throughout the state can continue to utilize tax exclusions and financing mechanisms authorized by Revenue and Taxation Code Section 73.
According to the official summary, ABX1 15
Revises the definition of “active solar energy systems” and declares the legislative intent to extend the current exclusion from property tax reassessment for purchases of new “active solar energy systems” to active solar energy systems that are sold in sale-leaseback arrangements.
That said, there are a few things to note.
The exclusion only appears to apply to the first tax payer:
As long as the active solar energy system is newly constructed or added and another taxpayer has not received an exclusion for the same active solar system, it is the Legislature’s intent that the purchaser of the active solar energy system in such a transaction receive an exclusion.
The exclusion only remains in effect until there is a change in ownership.
In the case of free-standing or parking lot canopies:
Newly constructed active solar energy systems that are constructed as freestanding or parking lot canopies, or that are constructed as installations on existing buildings qualify for the exclusion from classification as newly constructed.
For more information on ABX1 15, check out the AB1 15 bill analysis.