(Tennessee) Green Energy Production Property Credit
The 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.
|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|
|Tenn. Code § 67-5-604