HB 3823
Exempts from property taxes personal property used by a business to generate or store energy for consumption by the business on its premises.
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0%
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100%
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill exempts certain personal property used by businesses and residences to generate or store their own energy from property taxes. Specifically, it covers alternative energy systems, net metering facilities, and personal property used onsite for energy generation or storage. The exemption does not apply to utility businesses or property assessed under specific tax codes. The law takes effect on July 1, 2026.
Key provisions
- Exempts personal property used by businesses to generate or store energy for onsite consumption.
- Exempts personal property installed on residences to generate or store energy for onsite consumption.
- Defines ‘alternative energy system’ as solar, geothermal, wind, water, fuel cell, or methane gas systems.
- Excludes utility businesses from the exemption.
- Provides a calculation for property tax relief based on the difference in value with and without the energy system.
- Specifies that community solar projects are eligible for the exemption upon electrical inspection approval.
- Limits exemption to a single property tax year for community solar projects.
- Addresses exemptions for residences equipped with exempt property.
Who is affected
- Businesses
- Homeowners
- Local governments (assessing property taxes)
- Energy companies (specifically excluded)
- Property owners
Notable changes
Sponsors
Official sponsors from legislative records.
Primary sponsor
Cosponsor
Arguments in favor
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Submit yoursArguments opposed
Reasons to oppose this legislation.
Opponents of HB 3823 express concerns that the proposed exemption for energy technologies would create a significant funding gap for local governments, potentially harming their ability to fund essential services. They argue that excluding power generation and storage equipment costs from taxable real property values could also lead to an uneven playing field, unfairly benefiting large businesses and data centers that already possess the necessary equipment, thereby undermining the tax base and creating economic disparities.
Source: Testimony Summaries