Establishes that a renewable energy resource shall pay $5.00 per kilowatt of alternating current nameplate capacity for tangible property and $3.50 per kilowatt of alternating nameplate capacity for real property.
Summary
H5967 amends Rhode Island’s local tax and land-use laws to create a specific property-tax framework for renewable energy resources. The bill sets a standardized tax rate for renewable energy facilities at $5.00 per kilowatt of alternating-current nameplate capacity for tangible property, and $3.50 per kilowatt for real property associated with such resources. It also preserves existing exemptions for certain property categories and clarifies how manufacturing machinery and equipment, including some research and quality-assurance equipment, are treated for local taxation purposes.
The bill further changes the state’s Renewable Ready Program by making renewable energy resources proposed on previously contaminated properties a by-right use under municipal zoning. Such projects are deemed consistent with local comprehensive plans and presumed to have no significant negative environmental impacts, subject to the applicant proving the site qualifies as previously contaminated. The measure also limits structural lot coverage to 75 percent for these projects and leaves the existing eligibility rules for the renewable ready fund unchanged.
Impact
The bill directly affects Rhode Island General Laws chapters 44-5 and 42-140.5 by establishing a statewide, uniform tax treatment for renewable energy resources and by creating a streamlined permitting path for renewable energy projects on contaminated sites. It changes how municipalities assess and tax renewable energy facilities, limits local discretion over valuation and reassessment of property with renewable energy resources, and provides a clearer zoning status for qualifying brownfield-type projects. The bill is likely to affect municipalities, renewable energy developers, property assessors, and owners of contaminated or underused industrial land.
Sentiment
The bill appears to have been broadly supported, as reflected in unanimous recorded votes in both chambers: 69-0 in the House and 35-0 in the Senate. The absence of recorded opposition suggests general agreement with the policy goals of encouraging renewable energy development and simplifying taxation and permitting for such projects. No committee transcript was provided, so there is no additional evidence of debate or dissent in the available record.
Contention
No specific contention is documented in the available materials, but the bill’s main policy choices could have raised issues around municipal taxing authority, the fairness of a uniform per-kilowatt tax rate, and the extent to which renewable projects on contaminated properties should be treated as by-right uses. Potentially affected parties include municipalities, which may view the bill as limiting local assessment flexibility, and developers, who benefit from clearer tax treatment and expedited permitting. Because the votes were unanimous and no committee discussion is available, any disagreement appears to have been minimal or resolved before final passage.
To Amend The Sales And Use Tax Exemptions For Certain Machinery And Equipment Used In Manufacturing; And To Provide A Sales And Use Tax Exemption For Machinery And Equipment Used In Closed-loop Recycling.
Establishes that a renewable energy resource shall pay $5.00 per kilowatt of alternating current nameplate capacity for tangible property and $3.50 per kilowatt of alternating nameplate capacity for real property.