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Solar Tax Exemption Law Signed into Law
HB5442 – An Act Concerning The Property Tax Exemption For And Tax Agreements Related To Certain Class I Renewable Energy Sources – was signed into law by Gov. Lamont on June, 4, 2026.
This new law specifies the applicability of (1) a property tax exemption for certain Class I renewable energy sources and authorize municipalities to amend their 2025 grand list accordingly, and (2) certain tax agreements related to solar photovoltaic systems.
Specifically, the new law expands the scope of solar PV systems subject to the uniform solar capacity tax to include those that are permitted to operate on or after July 1, 2025 but before July 1, 2026. –The previous date was July 1, 2027, which would have made these systems responsible for one less year of the tax than those permitted on or after the July 1, 2026 date.
The bill also limits the solar-related property tax exemption in existing state law to facilities permitted to operate on or after 7.1.25. Finally, the bill restricts a property tax exemption for Class I solar PV systems to those systems receiving permission to operate from an electric utility or municipality on or after July 1, 2025.
