Oregon Administrative Rules
Chapter 150 - DEPARTMENT OF REVENUE
Division 307 - PROPERTY SUBJECT TO TAXATION
Section 150-307-0210 - Property Tax Status of Alternative Energy Systems
Universal Citation: OR Admin Rules 150-307-0210
Current through Register Vol. 63, No. 9, September 1, 2024
(1) Definitions:
(a) "Alternative energy system" means a
solar, geothermal, wind, water, fuel cell or methane gas energy system used for
the purpose of heating, cooling or generating electricity.
(A) Solar alternative energy systems use the
sun and may include but are not limited to:
(i) Solar electric or photovoltaic (PV)
systems that consist of solar electric panels (photovoltaic cells) that convert
sunlight directly into electricity and may include connective wiring, solar
electric modules, inverter, mounting system, disconnection equipment,
net-metering system, and storage batteries,
(ii) Solar heating or cooling systems that
consist of active, passive, and thermal systems used for water, or space
heating or cooling and may include south facing windows, trombe walls, extra
thick concrete/stone floors designed for the absorption of heat, thermal
chimneys, solar panels or collectors which directly heat coils of water on the
roof or outside walls, extra hot water storage tanks, connecting piping,
sensors, valves, pumps, heat exchangers, and controls.
(B) Geothermal alternative energy systems use
heat extracted from the earth and may include but are not limited to geothermal
heat pumps (GHPs), which can be used for both heating and cooling of buildings
and hot water needs.
(i) Ground source
geothermal heat pumps consist of buried loops or coils of tubing used to
exchange heat.
(ii) Water source
geothermal heat pumps consist of loops submerged in a lake, pond or well.
(C) Wind alternative
energy systems produce mechanical or electrical power or energy. Wind turbines
typically consist of a propeller driven generator attached to a building or
tower used to drive a direct current generator which is generally tied to a
battery storage system and used to power household or business needs. The
system may be connected to a net-metering system or be completely off-grid.
These systems may include:
(i) Small
stand-alone wind turbines.
(ii)
Groups of wind turbines.
(D) Water alternative energy systems or
hydropower systems are used to generate electricity. These systems may include
but are not limited to micro hydro systems which are small-scale facilities
providing electricity to power homes, small farms, and businesses. Micro hydro
systems typically consist of a small water drive wheel or turbine which is
connected to an electric generator and the output is connected to the user by
power wiring. These systems may include a storage battery system and
net-metering system.
(E) Fuel cell
alternative energy systems produce electricity electrochemically and
non-reversibly, using hydrogen-rich fuel and oxygen, producing an electric
current, water, and thermal energy. These systems may include but are not
limited to fuel cell systems using reformed fossil fuels which also produce
carbon dioxide.
(F) Methane gas
alternative energy systems are typically gas collection systems used to fuel an
electric generator and may also include methane digester systems. These systems
may include but are not limited to:
(i)
Methane collection systems installed at closed or partially closed land fills
and used to fuel electric generator systems.
(ii) Methane digester systems owned by and
installed at dairy farms and used to generate power.
(b) "Onsite" means a single,
operationally integrated complex of property or properties composed of a single
parcel of land and improvements thereon or a group of adjacent parcels and
improvements thereon.
(2) Alternative energy systems qualify for exemption only if the system is a net metering facility, as defined in ORS 757.300, or is primarily designed to offset onsite electricity use.
Example
1 : A company installs solar panels to generate electricity. The
solar energy system is installed as a net metering facility. Therefore, the
solar energy system qualifies for the property tax exemption.
Example 2 : A utility owns a large wind
generating farm. The system is not a net metering facility nor is it designed
to offset onsite electricity use. Therefore, the wind energy system does not
qualify for the property tax exemption.
Example
3
: A methane collection system installed at a closed
portion of an otherwise active landfill is used to fuel an electric generating
facility to produce electricity used to offset power use at the active portion
of the landfill. The system qualifies for the property tax exemption.
Example 4 : A methane digester
system installed at a dairy farm is used to fuel an electric generator system
to generate power for the dairy farm's operations. This qualifies for
exemption.
Example 5 : An
industrial facility installs a methane collection system where methane gas is
compressed and used as a fuel source to generate electricity for the facility's
operations. This qualifies for exemption.
(3) Alternative energy systems that provide heating, cooling or that generate electrical energy for personal consumption qualify for the property tax exemption only to the extent that they are primarily designed to offset onsite electricity use or are net metering facilities.
(4) Alternative energy system devices and components are exempt to the extent that they add real market value (RMV) to the property. Additional value accruing to property to which a qualified alternative energy system is installed due to the existence of such a system is exempt.
(5) Examples of property that typically do not qualify for the exemption include but are not limited to porches, sunrooms, solariums, and greenhouses.
Stat. Auth.: ORS 305.100
Stats. Implemented: ORS 307.175
Disclaimer: These regulations may not be the most recent version. Oregon may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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