Implementing Sector: | State |
Category: | Financial Incentive |
State: | Idaho |
Incentive Type: | Property Tax Incentive |
Administrator: | Idaho State Tax Commission |
Start Date: | 01/01/2008 |
Eligible Renewable/Other Technologies: | Geothermal Electric, Solar Thermal Electric, Solar Photovoltaics, Wind (All) |
Incentive Amount: | 100% of property taxes, replaced with 3% tax on production for wind and geothermal or 3.5% for solar energy |
Name: | Idaho Code § 63-3502B |
Effective Date: | 1/1/2008 |
Name: | Idaho Code § 63-602JJ |
In 2007, Idaho enacted a bill that restructured the method of taxation for producers of wind energy from a property tax to a tax on production. The aim of this restructuring was to ease the burden on commercial wind farms in the early years of operation. In 2008, Idaho enacted further legislation to include geothermal energy producers under this method of taxation, and solar energy producers were included under legislation (H.B. 534) enacted in 2016.
Under these policies, commercial wind, solar, and geothermal energy producers, excluding those regulated by the Idaho Public Utilities Commission, are exempt from paying taxes on real estate, fixtures or property related to their renewable energy systems. In lieu of property taxes, however, wind and geothermal energy producers must instead pay a tax of three percent (3%) of gross energy earnings. Solar energy producers must pay a tax of three and a half percent (3.5%) of gross energy earnings.
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