(Tennessee) Green Energy Production Property Credit

Renewable_Energy_Credits_RECs1The state of Tennessee offers a special ad valorem property tax assessment for certified green energy production facilities. The Department of Environment and Conservation 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.

These certified green energy production facilities are permitted  to utilize salvage value for property tax purposes.  Meaning, the estimated fair market value, if any, that could be realized upon the voluntary sale or other disposition of such property when it can no longer be used for the purpose for which it was designed. For purposes of this special assessment, salvage value shall never exceed one-half percent (0.5%) of the acquisition value of such facilities. Facilities may qualify by obtaining a certificate from the TennesseeDepartment of Environment and Conservation, or by such county boards of health as it may designate.

The effective date of the property valuation provided is January 1, of the following year after the date of application.

Program Overview:
State: Tennessee
Incentive Type: Property Tax Incentive
Eligible Renewable/Other Technologies: Photovoltaics, Wind, Geothermal Electric, Hydrogen, Small Hydroelectric
Applicable Sectors: Not addressed
Amount: Varies; salvage value shall never exceed one-half percent (0.5%) of the acquisition value
Equipment Requirements: Must be certified green energy production facility
Start Date: 06/30/10
Authority 1:
Date Enacted:
S.B. 3901
Authority 2:
Date Effective:
Tenn. Code § 67-5-604

Taxpayer Assistance
Tennessee Comptroller of the Treasury
Tennessee Comptroller of the Treasury
1400 James K. Polk State Office Building
505 Deaderick Street
Nashville, TN 37243
Phone: (615) 401-7737
E-Mail: Comptroller.Web@state.tn.us
Web Site: http://www.comptroller1.state.tn.us/ 

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