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Tax committee advances 10‑year property tax exemption for new energy storage systems after date amendment
Summary
House Bill 2083 would subject new energy storage systems to a 10‑year property tax exemption and remove them from the CIME exemption; the committee approved an amendment moving enactment to Jan. 1, 2025 and reported the bill favorably as amended.
House Bill 2083 would make new energy storage systems eligible for a 10‑year property tax exemption and explicitly exclude such systems from lifetime treatment under the state commercial and industrial machinery and equipment (CIME) exemption.
Reviser summary and amendment: The reviser told the committee the bill would provide a 10‑year exemption for new energy storage systems and remove them from the CIME lifetime exemption. Representative Poe Heisel offered an amendment to change the bill’s effective date forward to Jan. 1, 2025 so the statutory cap would apply to projects built after that date; the amendment was adopted.
Committee debate: Members questioned the public policy tradeoffs. Representative Turner argued energy‑storage projects are market investments that largely serve to buy low and sell high in wholesale markets and suggested tabling the bill until federal and regional regulators (FERC and SPP) clarify classification and rating rules; Turner later withdrew a motion to table and the committee voted down the tabling motion. Other members said the exemption provides certainty for investors and could promote construction where desired.
Fiscal and implementation notes: The reviser’s summary and testimony during the hearing described the change in tax treatment and the cutoff dates for construction and county approvals; the amendment adjusted those dates to 2025. The committee did not receive a detailed fiscal estimate in the hearing record included in the transcript, but members discussed potential effects on local revenue and questioned job and manufacturing impacts for storage projects.
Committee action: After debate the committee approved the Poe Heisel amendment and voted to pass House Bill 2083 favorably as amended; Representative Poe Heisel moved the final motion and Representative Hsu seconded. The chair announced the ayes had it and the motion carried.
Ending: Committee members asked staff to monitor classification work at FERC and SPP and discussed the idea of revisiting policy next year if federal/regional rulings change treatment of energy storage.
