EXECUTIVE SUMMARY: Standardizing Renewable Energy Property Tax Approaches in NYS
March 23, 2021
KEY FINDINGS OF THE STUDY
• The current lack of a standardized property taxation methodology in New York introduces uncertainty into renewable energy development, leading to project delays and attrition that impede New York’s ability to successfully fulfill its clean energy goals, namely, 70% renewable electricity by 2030 (70 by 30) and 6 GW distributed solar by 2025.
• Standardization of property taxation assessment methodology holds promise for mitigating this barrier—increasing certainty, reducing project attrition, reducing development timelines, and increasing project development—without reducing expected property tax or payment in lieu of tax (PILOT) rates to taxing jurisdictions.
• Standardizing tax assessments could lead to approximately 3,500–6,100 MW (megawatts) more capacity of renewable energy projects on the grid by 2030, with approximately 1,150 MW of that total increase from distributed solar resources. This additional renewable energy will not only generate a healthier environment for all New Yorkers, but also will generate significantly increased economic benefits across all regions of New York State, as highlighted throughout this report.
If renewable energy tax assessment standardization is adopted...
• Local jurisdictions across New York State could receive $116 million to $348 million more in the net present value of PILOTs over project lifetimes.
• The State could generate 12,300 to 20,600 additional jobs from increased and accelerated renewables deployment, resulting in an additional $2 billion in labor income at the mid-range.
• New York Gross State Product could increase by $3.9 billion to $6.5 billion.
• Business sales across the State could increase by $6.9 billion to $11.6 billion.
(All values represented in 2021$, for projects coming online 2022–2030)