Calif. Senate, Governor Prolong Property Tax Exclusion for Solar Installations

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Gov. Gavin Newsom

California Gov. Gavin Newsom has signed Senate Bill 1340, which extends the prevailing property tax exclusion for newly constructed, energetic solar energy techniques by two years.

“The COVID-19 pandemic and supply chain delays have contributed to project delivery interruptions, including planned solar energy projects,” Gov. Newsom says in a press release. “That said, this policy has a direct impact on property tax revenues that support essential services at the local level. I believe this two-year, temporary extension strikes an appropriate balance between ensuring that these delayed solar projects are brought online quickly, while recognizing the impacts to local governments.”

“Further, this year’s budget included $300 million to create the Local Government Budget Sustainability Fund, which provides bridge funding to support county governments who are committed to advancing climate resilient projects that will bolster local revenues and contribute to long-term budget sustainability,” Gov. Newsom continues. “In signing this bill, I urge the legislature to consider the impacts to local agencies before bringing forward another extension of this policy.”

“Gov. Newsom’s signature on this two-year tax exclusion will help ensure solar and storage projects continue providing clean, reliable power to California at a time of unprecedented stress on the state’s electric grid,” says Rick Umoff, senior director and counsel for California on the Solar Energy Industries Association (SEIA). “With incentives within the Inflation Reduction Act, California’s solar market is predicted to almost double in measurement over the following 5 years to 61.5 gigawatts of electrical energy technology capability. This progress requires tens of 1000’s of staff and billions of {dollars} of personal funding, and firms now have near-term tax certainty to make sure these investments are made within the California communities that depend on a strong clear energy economic system.

“The solar and storage industry thanks Senator Hertzberg and dozens of clean energy champions in the Legislature for recognizing the importance of this exclusion and getting it extended,” Umoff provides. “SEIA now turns its focus to securing a well-rounded energy policy in California that strengthens every sector of this critical industry.”

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