Property Tax Exemption for Renewable Energy Equipment

March 23, 2023

Summary

H.B. 8354, enacted on July 2016, included a provision exempting qualifying renewable energy systems and associated equipment used in residential and manufacturing sector from property taxes throughout the state. Eligible renewable energy resources include direct solar radiation, wind, ocean, geothermal, small hydro, eligible biomass fuels, and fuel cells using renewable resources.

Renewable energy equipment used in commercial facilities is not included in the exemption. However, legislation amended R.I. Gen Law §44-3-9 adding renewable energy equipment to qualify for tax stabilization, which may apply to commercial facilities. This authorizes local governments in Rhode Island to provide tax stabilization agreements for renewable energy systems.

Previously, two separate provisions existed in Rhode Island that 1) allowed local government to exempt renewable energy systems in their jurisdiction via local ordinance and 2) required local governments property tax for residential solar equipment no more than conventional heating systems. Both of these provisions have been superseded by H.B. 8354.

Program Overview

Implementing Sector:	State
Category:	Financial Incentive
State:	Rhode Island
Incentive Type:	Property Tax Incentive
Web Site:	http://www.energy.ri.gov/policies-programs/programs-incentives/
Administrator:	http://www.tax.ri.gov/
Start Date:
Eligible Renewable/Other Technologies:	Solar - Passive Solar Water Heat Geothermal Electric Solar Photovoltaics Wind (All) Biomass Geothermal Heat Pumps Tidal Wave Ocean Thermal Solar Pool Heating Hydroelectric (Small) Anaerobic Digestion Fuel Cells using Renewable Fuels
Incentive Amount:	100% exemption from property taxes
Eligible System Size:	Not specified
Equipment Requirements:	Must use qualifying renewable energy resources

Authorities

Name:	R.I. Statutes §44-3-3 (a) (48-49)
Effective Date:	06/27/2016

Name:	H.B. 8354
Date Enacted:	06/27/2016
Effective Date:	06/27/2016

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.