New Hampshire Republicans try to put off a 50-year-old property tax exemption for households and companies with photo voltaic, contending that the coverage forces residents with out the clear power methods to unwittingly subsidize those that have them. Supporters of the exemption, nevertheless, say this argument is deceptive, insulting, and at odds with New Hampshire’s custom of letting communities form their very own native governments.
The main target of the controversy is a invoice proposed within the New Hampshire Home this month by Republican Consultant Len Turcotte and several other co-sponsors in his social gathering. The measure would repeal a legislation, established in 1975, that authorizes cities and cities to exempt house owners of solar-equipped buildings from paying taxes on no matter worth their photo voltaic methods add to their property. As of 2024, 153 of the state’s municipalities — roughly two-thirds — had adopted the exemption, one of many solely incentives provided in assist of residential solar energy within the state.
The exemption implies that householders with out photo voltaic should pay extra property tax to make up for the cash not being collected from the “excessive minority” who’ve photo voltaic panels, Turcotte mentioned whereas presenting his laws at a listening to of the Home Science, Know-how, and Vitality Committee final week. This “redistribution” of the tax burden is unfair, he mentioned.
The photo voltaic property tax exemption is a pretty frequent coverage: Nationally, 36 states supply some model of it. Whereas legislators in lots of states have focused pro-solar insurance policies like web metering, property tax exemptions have to date averted related assaults. New Hampshire, due to this fact, might find yourself as a proving floor for whether or not this strategy can discover traction.
New Hampshire doesn’t have a gross sales tax or an earnings tax and leans closely on native property taxes for income; its charges are among the many highest within the nation. That makes modifications to property tax coverage a significantly delicate topic. The photo voltaic exemption invoice has Republicans, who’re usually tax averse, strolling a high-quality line between championing what they are saying is equity for all and pushing a coverage that may inevitably elevate taxes for some.
The state authorizes 15 different property tax exemptions — together with for aged residents, veterans, and people with disabilities — however Turcotte’s invoice targets solely the one for photo voltaic.
The exemption is a “native possibility” coverage, that means cities and cities should decide in by a vote in every municipality. Turcotte, nevertheless, doubts the typical resident realized that they had been signing as much as pay extra on their very own taxes.
“They see a feel-good measure,” he mentioned. “Do they really perceive? I don’t consider they do.”
After Turcotte offered his invoice, the remaining audio system — a few dozen clear power advocates, lawmakers, enterprise leaders, and native photo voltaic house owners — uniformly opposed his proposal.
Eradicating the exemption could be an unfair rule change after householders invested in photo voltaic methods with the understanding they’d be getting a tax break, many argued. Companies utilizing photo voltaic might face a “important tax improve,” mentioned Natch Greyes, vice chairman of public coverage at New Hampshire’s Enterprise and Trade Affiliation. The change might price householders with photo voltaic a whole lot of {dollars} per yr whereas barely decreasing the property tax charge for everybody else, others mentioned.
Within the city of Hudson, for instance, $2.2 million in property worth isn’t taxed due to the exemption, out of a tax base of $5.1 billion, its chief assessor, James Michaud, testified. Eradicating the exemption would have nearly no impact on the tax charge, he mentioned.
“It’s nearly incalculable how small it’s,” he mentioned.
No matter tiny tax shift the exemption creates is price it, others argued, saying that it supplies an incentive for the general public good: Extra photo voltaic means decrease greenhouse fuel emissions and fewer burden on the grid. Turcotte countered that these broader advantages of photo voltaic — a lot of which have been effectively documented — are “subjective.”
The query of native management additionally loomed massive within the testimony. In New Hampshire, whose motto is “Dwell Free or Die,” the best of particular person cities to resolve on their very own guidelines and rules has lengthy been a level of pleasure. Repealing the exemption would imply overriding choices made by voters. Turcotte’s declare that residents didn’t perceive what they had been stepping into just isn’t solely condescending but in addition simply plain mistaken, a number of witnesses mentioned.
“You’re primarily, with this invoice, substituting your judgment about what’s correct on the degree of native taxation for that of city conferences and metropolis councils all through the state,” mentioned Consultant Ned Raynolds, a Democrat, whereas questioning Turcotte.
The invoice now awaits a vote in committee earlier than it might face a ground vote from the total Home. It might then advance to the Senate. Republicans management each chambers of the state Legislature and the governor’s workplace.
However the invoice’s opponents hope that lawmakers will heed their arguments and provides weight to the mass of voters who’ve accredited the exemption throughout the state.
“That is the rationale two-thirds of the cities have adopted it: They will see it’s a good factor,” testified David Trumble, a photo voltaic proprietor from the city of Weare. “Photo voltaic is a good factor.”
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