HB 7266 establishes a new statewide framework for taxing large solar photovoltaic systems in Connecticut. Beginning July 1, 2026, owners of qualifying solar systems over 2 megawatts that are approved on or after July 1, 2026, would owe an annual municipal tax for 20 years, calculated initially at $11,000 per megawatt of nameplate capacity and then increased by 2% each year for systems approved in later tax years. The bill defines how capacity is measured, how systems spanning multiple parcels or municipalities are treated, how the tax is collected, and how appeals and late-payment interest would work. It also allows municipalities to enter into agreements to freeze or stabilize the tax for particular system owners.
Impact
The bill would add a new section to the general statutes creating a municipal tax on large solar photovoltaic systems and directing the revenue to the local general fund. It would also amend the property tax exemption statute for renewable energy equipment, narrowing the exemption for certain Class I renewable energy sources and adding a specific exemption for solar photovoltaic equipment and devices beginning with assessment years on and after October 1, 2025, while making clear that the exemption applies only to the equipment itself and not the underlying real property. The measure would affect solar developers, system owners, municipalities, assessors, tax collectors, and property owners with large solar installations, especially projects that exceed on-site load or are located across multiple parcels or towns.
Sentiment
The available voting history shows strong support in committee, with the Finance, Revenue and Bonding Committee reporting the bill favorably on a 52-0 vote. No committee transcript excerpts were provided, so there is no recorded debate to indicate opposition or support beyond the unanimous committee action. Overall, the bill appears to have been advanced as a consensus fiscal and tax policy measure rather than a controversial proposal at the committee stage.
Contention
The main policy tension in the bill is between municipal revenue generation and the economics of large-scale solar development. Supporters are likely focused on creating a uniform tax structure and ensuring municipalities receive revenue from utility-scale solar projects, while potential critics would be concerned that the tax could raise project costs, discourage future solar investment, or create uneven treatment for renewable energy infrastructure. Another point of possible contention is the bill’s interaction with existing property tax exemptions for renewable energy equipment, since it narrows some exemptions while creating a separate framework for taxing larger solar facilities.