Property Tax Exclusion for Construction Of Active Solar Energy Systems Clarified

California enacted legislation (A.B. 15) clarifying that the construction of an active solar energy system on new property is not considered “newly constructed” property, and, therefore, is not subject to ad valorem taxation.

“Newly constructed” real property is subject to ad valorem tax; however, active solar energy systems are excluded from the tax because they are not classified as “newly constructed” property. The new construction exclusion was enacted to encourage taxpayers to develop solar energy systems.

The bill defines an active solar energy system as a system using solar devices that are thermally isolated from living space to ...