This code clarifies the exclusion of an active solar energy system from being considered new construction which triggers property reassessment.
Updated 8/1/14
California Revenue & Taxation Code §73
Added by A.B. 15
Effective: June 28, 2011
The construction or addition of an active solar energy system on a property does not qualify that property as “newly constructed,” and thus does not trigger reassessment of the appraised value of the property for ad valorem taxes.
The definition of an active solar energy system has been further clarified as a system that — upon construction as part of a new property or as an addition to an existing property — uses solar devices to collect, store or distribute solar energy.
The exclusion of an active solar energy system from new construction is effective until the property undergoes a change in ownership. It applies to property tax lien dates for the 1999-2000 fiscal year through the 2015-2016 fiscal year.
The exclusion is effective until January 1, 2017. Any active solar energy system that is excluded from being considered new construction before January 1, 2017 will continue to be excluded after January 1, 2017 until the property undergoes a change in ownership.
This legislation has been partially superseded. The solar energy exclusion now extends to 2025. [See: Tax exclusion for solar energy construction extended]
