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Qualified Energy Property Tax Exemption for Projects 250 kW or Less

Eligibility 
Commercial
Investor-Owned Utility
Municipal Utilities
Cooperative Utilities
Savings Category 
Geothermal Electric
Solar Thermal Electric
Solar Photovoltaics
Wind (All)
Biomass
Combined Heat & Power
Fuel Cells using Non-Renewable Fuels
Wind (Small)
Hydroelectric (Small)
Anaerobic Digestion
Fuel Cells using Renewable Fuels
Program Info
Sector Name 
State
Administrator 
Ohio Development Services Agency
Website 
http://development.ohio.gov/bs/bs_qepte.htm
State 
Ohio
Program Type 
Property Tax Incentive
Rebate Amount 

100% exemption

Note: According to the Ohio Development Services Agency website, the owner or lessee subject to sale leaseback transaction must apply to Development Services Agency on or before December 31, 2015  to qualify for this tax credit.

Ohio's Renewable and Advanced Energy Project Property Tax Exemption, enacted with the passage of Ohio S.B. 232 in the summer of 2010, exempts qualified energy projects in Ohio from public utility tangible personal property taxes and real property taxes. Before passage of S.B. 232, a renewable energy facility in Ohio that sold electricity to a third-party was considered a "public utility" for tax purposes.

Per Ohio Revision Code 5709.53, qualified energy systems of 250 kilowatts (kW) or less will not be subject to the payment in lieu of property tax. For qualified energy projects larger than 250 kW, see the DSIRE entry Qualified Energy Property Tax Exemption for Projects over 250 kW (Payment in Lieu) for additional details.

Energy facilities with nameplate capacity of 250 kilowatts (kW) or less (AC) are permanently exempt from public utility tangible personal property tax and real property taxes. Energy facilities are defined as interconnected solar, wind, or other tangible property used to generate electricity. Under this law, the interconnection equipment, cables, devices, and the land (limited to up to 1/2 acre per wind turbine) are also exempt. Energy facilities built after January 1, 2010 are eligible for this treatment.

Visit the Ohio Development Services Agency's web site for additional information, implementation documents and program documents.