Property Tax Exemption for Wind and Solar-Electric Systems

Minnesota excludes the value added by solar-electric (PV) systems from real property taxation, and all real and personal property of wind-energy systems is exempt from the state’s property tax. However, the land on which a PV or wind system is located remains taxable. In lieu of a property tax on large wind-energy systems, a production tax was implemented in 2002. Wind systems greater than 12 MW are taxed at a rate of 0.12 cents/kWh; systems between 2 MW and 12 MW are taxed at a rate of 0.036 cents/kWh; and systems between 250 kW and 2 MW are taxed at a rate of 0.012 cents/kWh. Wind systems under 250 kW are exempt from the production tax, as are systems with a capacity of 2 MW or less that are owned by political subdivisions. Contact: Energy Information Center, Minnesota Department of Commerce Energy Division, 85 7th Place East, Suite 500, St. Paul, MN 55101-2198; 651-296-5175; Fax: 651-297-7891; http://www.state.mn.us/portal/mn/jsp/content.do?id=-536881350&subchannel=-536881511&sc2=null&sc3=null&contentid=536885915&contenttype=EDITORIAL&programid=536885394&agency=Commerce