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Last Action

Re-ref Com On Energy and Public Utilities2025-04-30

Vote Breakdown

No floor votes recorded.

Plain Language Summary

This bill gradually reduces the property tax exemption for solar energy systems in North Carolina over four years, starting in 2026. By July 1, 2029, solar systems will no longer receive any property tax exclusion and will be taxed at full appraised value like other property.

Arguments in Favor

• •Supporters argue this bill protects farmland by making large-scale solar installations less financially attractive, since the tax exemption currently makes them more profitable on agricultural land.
• •They contend this preserves North Carolina's farming heritage and prevents the conversion of productive farmland to solar energy production.
• •Proponents also argue that removing the tax break creates a more level playing field where solar projects must compete fairly with other land uses.

Arguments Against

• •Opponents argue this bill discourages renewable energy development and makes solar installations more expensive, which could slow North Carolina's transition to clean energy and increase electricity costs.
• •They contend that solar farms can coexist with farming through practices like agrivoltaics, and that removing tax incentives undermines the state's clean energy goals.
• •Critics also argue the exemption phase-out may harm property owners who already invested in solar systems based on existing tax policy.