Rosebud County hears 50% tax-abatement request for proposed NextEra solar-and-storage project

Rosebud County commissioners held a public hearing on Tuesday, Dec. 2, to review a request for a 50% tax abatement on a proposed NextEra Energy solar farm with battery storage. County presenter Bob outlined projected values, tax calculations and how Senate Bill 117 would affect the county’s share of newly taxable property.

Bob said the applicant is seeking "a 50% tax abatement," describing an abatement schedule that would be 50% for the first five years, then increase (60% in year six, 70% in year seven) and, as presented, reach 100% by year 10. He said the project would be sited in northeastern Rosebud County near existing Clearwater transmission and would include a new substation; construction was projected to begin in mid-2027 with phases coming online through 2029.

On project value and taxes, Bob reported figures the presentation listed as a solar portion of about $1,127,000,000 (taxed at 6%) and a storage portion of about $695,000,000 (taxed at 3%), and said the packet’s computed overall taxable value for the project is about $88,470,000 (figures quoted as presented to the board). He also presented modeling showing how Senate Bill 117, which splits newly taxable value, affects county receipts: under current statute the county receives 50% of new taxable value, with the remainder allocated to a state reserve fund and other returns; Bob said a local tax abatement would remove that split for the county in later years and, in his model, produce larger county collections over the project life than if the abatement were denied.

A NextEra representative told commissioners the abatement "provides a more stable and predictable tax environment," and that without the abatement "it's more uncertain" whether the company would proceed. The presenter for NextEra said the abatement helps the company's executive leadership make multi-jurisdiction investment decisions.

Several commissioners and the mayor questioned trade-offs. A commissioner asked what share of the county’s taxable value NextEra would represent; Bob said the project assumptions gave NextEra about 67% of the county’s total taxable value under that scenario while noting additional future projects could dilute that share. The mayor said his main concern was maintaining quality of services even if mills (tax rates) drop.

Meeting participants also discussed employment and timing: presenters estimated roughly a dozen new full-time local jobs in addition to employees already working at nearby Clearwater sites, and said initial commercial operation was expected in phased steps through 2029.

Procedural next steps: county staff said they will present four resolutions (one per project page) and the board plans another hearing that evening at 6:00 p.m., a backup meeting next Tuesday at 10:00 a.m. if weather requires, and to place the resolution(s) on the Dec. 16 agenda for a vote.

The hearing record and staff spreadsheets were offered to commissioners for review; no final action on the abatement was taken at the Dec. 2 session. The board approved the consent agenda earlier in the meeting.