Pirate's Cove

And you know what happens without massive tax breaks? Solar projects stop

North Carolina House committee advances bill ending tax break for new solar projects

A North Carolina House committee on Tuesday approved legislation that would eliminate a long-standing property tax break for new utility-scale solar projects, advancing a proposal supporters say will return millions of dollars to local governments. Some are concerned the move could slow new energy development at a time when demand is skyrocketing.

The proposed committee substitute for House Bill 1213 would repeal the state’s 80% property tax exclusion for solar energy systems placed into service on or after July 1, 2027. Existing solar facilities would continue receiving the exemption.

The House Finance Committee approved the measure on a 12-8 recorded vote, sending it to the House Rules Committee.

Rep. Jimmy Dixon, R-Duplin, said the tax incentive, created in 2008 to help establish North Carolina’s solar industry, has outlived its original purpose.

“The solar industry in North Carolina has matured greatly over the last 16 years,” Dixon told lawmakers. “It’s becoming an adult, and it should act on its own as an adult.”

I’ll be honest, even though the GOP full controls the GA, I’m not sure this will pass, and the governor will veto it if it does pass. Which is kinda funny, because Democrats usually love ending tax breaks for companies. Maybe they could dial the breaks down to 20-30%? Couldn’t hurt, right?

Supporters said repealing the exemption would strengthen local tax bases, particularly in rural counties where large solar projects are concentrated.

Joy Hicks, director of advocacy and policy for the North Carolina Association of County Commissioners, said counties statewide forgo about $40 million in property tax revenue each year because of the exemption. She said Edgecombe County alone loses roughly $2.5 million annually.

Of course, without those massive tax breaks they won’t be getting new projects. That’s just the way it works.