Property Tax Exemption for Renewable Energy Equipment

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 Both of these provisions have been superseded by H.B. 8354.