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Green Energy Property Tax Assessment (Tennessee)

Eligibility 
Agricultural
Commercial
Industrial
Investor-Owned Utility
Utility
Municipal Utility
Residential
Rural Electric Cooperative
Savings Category 
Photovoltaics
Program Info
Start Date 

06/30/2010

State 
Tennessee
Program Type 
Property Tax Incentive
Rebate Amount 

Wind property assessed value may not exceed 1/3 of total installed costs
Solar property assessed value may not exceed 12.5% of total installed costs
Other technologies vary

Provider 
Tennessee Comptroller of the Treasury

Tennessee offers a special ad valorem property tax assessment for certified green energy production facilities. Property that generates electricity from a certified facility shall be assessed as follows:

  • Wind property shall be assessed at a value of no more than one-third of total installed costs;
  • Solar property shall be assessed at a value of no more than 12.5% of total installed costs;
  • All other qualifying green energy property shall be assessed at a value determined by the State Board of Equalization and Department of Environment and Conservation (TDEC)

These assessment rates are effective January 1, 2013. TDEC defines and certifies facilities based upon production of electricity for use and consumption off the premises using clean energy technology, which is defined as technology used to generate energy from geothermal, hydrogen, solar, and wind sources. The effective date of the property valuation provided is January 1, of the year for which the valuation is claimed. A copy of the facility certification must be provied by the property owner to the comptroller's office by March 1 of the same year. The comptroller must advise the assessor of the locations of any certified green energy property and must advise the assessor as to whether the property should be assessed locally or centrally.

Other Information 

Must be certified green energy production facility