Qualified Energy Property Tax Exemption for Projects over 250 kW (Payment in Lieu)

Incentive type: 
Renewable Energy
Technologies: 

Solar Thermal, Photovoltaics, Landfill Gas, Wind, Biomass, Hydroelectric, Geothermal, Fuel Cells, Municipal Solid Waste, CHP/Cogeneration, Anaerobic Digestion

Date: 

In order to be certified as a "qualified energy project" the facility must begin construction between January 1, 2009 and January 1, 2012.  Applications are due to ODOD by December 31, 2011, and the facilities must be placed in service by January 1, 2013. 

Sectors: 
Commercial
Amount: 

Renewable energy facilities certified are granted the property tax exemption for the life of the facility as long as they comply with the following provisions of the property tax exemption. In lieu of taxes, the following payments must be made to the county where the renewable energy facility is located:

  • Solar energy facilities: $7,000 per megawatt (MW)
  • All other qualified facilities employing at least 75% Ohio-based employees during construction: $6,000/MW
  • All other qualified facilities employing at least 60% Ohio-based employees during construction: $7,000/MW
  • All other qualified facilities employing at least 50% Ohio-based employees during construction: $8,000/MW
Contact Information: 
Ohio Department of Development
Ohio Energy Resources Division
77 South High Street, 26th Floor
PO Box 1001
Columbus, OH 43216-1001

Phone: (614) 466-6797
Fax: (614) 466-1864
E-Mail: energy@development.ohio.gov
Web Site: http://development.ohio.gov/Energy

 

The Qualified Energy Project Tax Exemption provides owners (or lessees) of renewable, clean coal, advanced nuclear, and cogeneration energy projects with an exemption from the public utility tangible personal property tax. In order to qualify, the owner or lessee subject to sale leaseback transaction must apply to the Department of Development on or before December 31, 2011 for renewable energy projects and before December 31, 2013 for clean coal, advanced nuclear, and cogeneration projects. If the project meets the requirements of the exemption, then the Director of Development will certify the project as a “Qualify Energy Project.” Qualified Energy Projects will remain exempt from taxation so long as the project is completed within the statutory deadlines, meets the “Ohio Jobs Requirement,” and continues to meet several ongoing obligations including providing the Ohio Department of Development with project information on an annual basis.


Facilities with a nameplate capacity of 250 kW or less generating electricity for sale to third parties are 100% exempt from public utility tangible personal property tax.  Facilities with capacities exceeding 250 kW, utility based property taxes can be replaced by payments in lieu based on facility size, type and other factors.  

For additional information, please visit the program webpage.