Nevada bill would clarify property-tax status for farms adding solar panels

CARSON CITY — Assemblymember Howard Watts on Tuesday told the Assembly Committee on Revenue that Assembly Bill 479 would clarify Nevada law so agricultural parcels that colocate solar photovoltaic panels and continue agricultural production can retain their deferred property-tax status.

"What AB 479 is seeking to do, is clarify that if you added solar panels onto agricultural land and maintain that agricultural use or production, that the deferred property tax status on that land would continue to exist," Assemblymember Howard Watts said in opening the bill.

The bill defines "agrivoltaic purposes" and adds that term to the statute governing current employment of real property for agricultural-use deferred-tax treatment. Watts said a conceptual amendment on file tightens the definition so panels must be sited, spaced and designed to enable integrated agricultural activities rather than simply placing a typical utility solar layout on farmland.

Supporters told the committee agrivoltaics can reduce pressure to site utility-scale solar on undeveloped land, provide alternative revenue for farmers and help conserve scarce water. Olivia Tanager, testifying in support, said agrivoltaics "helps farmers, the backbone of our ag industry in the state," and could reduce water use and pressure on public lands. Carrie Rohrmeyer of The Nature Conservancy said agrivoltaics can preserve communities as irrigated agriculture changes and cited a feasibility study in Diamond Valley where some lands could incorporate agrivoltaics with little to no irrigation.

Eureka County's natural-resources manager, Jake Tibbets, said his county has thousands of leased private farm acres and supports the bill as a tool to preserve agricultural activity while accommodating renewable development.

Watts told the committee the conceptual amendment would also require that land qualifying for the benefit be agricultural land receiving the deferred status as of July 1 of the year the law takes effect, to prevent nonagricultural parcels from being converted to evade taxes. He added a proposed second section would require assessors to include the value of solar production when determining assessed value so the state could see revenue increases even if the deferred status remains in place.

Committee members pressed Watts about edge cases such as fallow fields and crop rotation. "Would that still qualify if they've been farming it, say, within the last 3 to 5 years?" asked Assemblymember Haven, who said some farmers leave fields fallow for a season. Watts replied that the sponsor's intent is to preserve existing agricultural land that already enjoys deferred status; if a parcel currently has the agricultural deferred tax treatment despite being temporarily fallow, it would qualify under the amendment.

Watts said the bill mirrors an existing restriction in Nevada law that prevents stacking the state renewable-energy tax abatement (NRS 701A) with other deferred tax statuses. He also noted Colorado and other Western states have pilot projects and policy frameworks on agrivoltaics; Colorado in particular has provided appropriations and tax incentives tied to demonstration projects.

No formal action or vote was recorded during the hearing. Supporters asked the committee to adopt the conceptual amendment on file to guard against gaming the benefit and to ensure integrated agricultural design and assessment of added solar value. The committee gave members an opportunity for questions and then moved to the next agenda item.

The bill drew majority support from agricultural and conservation groups in testimony; local-government staff and county officials said the amendment improves safeguards for the tax base.