West Virginia Senate approves solar farm bill clarifying agricultural status

The West Virginia Senate Agriculture Committee made significant strides in its March 12, 2025, meeting, advancing two key pieces of legislation aimed at clarifying agricultural property classifications and tax exemptions for solar energy facilities and farmland.

The committee unanimously approved Senate Bill 295, which clarifies that solar generation facilities are not classified as agricultural operations. This change means that land hosting solar panels, which commercially sell electricity or use it for non-agricultural purposes, will not qualify for reduced property tax assessments typically available to farming operations. However, farms will retain their agricultural classification if solar panels are installed solely on structures used for farming, such as residences or barns. This bill aims to provide clarity in property appraisals and ensure that solar facilities do not inadvertently benefit from agricultural tax breaks.

Additionally, the committee discussed Senate Bill 618, which addresses farmland tax exemptions and appraisals. This bill proposes a new provision allowing corporate owners of farmland to qualify for reduced property tax assessments even if farming is not their principal business activity, provided they generate at least $20,000 annually from agricultural sales. This change is intended to support smaller farming operations that may struggle to meet the current threshold of 50% of total income from agriculture.

Both bills will now move to the Committee on Finance for further consideration. The discussions highlighted the committee's focus on balancing the interests of traditional farming with the growing presence of renewable energy sources in West Virginia. As these bills progress, stakeholders will be watching closely to see how they impact the agricultural landscape and the integration of solar energy in the state.