Partial Sales and Use Tax Exemption for Agricultural Solar Power Facilities

Tax Exemption for Agricultural Solar Power - California

Partial Sales and Use Tax Exemption for Solar PV

California provides a partial exemption of the state's sales and use tax for farm equipment and machinery. In order to qualify for the partial exemption, the equipment must be used 50% or more of the time to produce or harvest agricultural products. In the case of Solar PV, 50% or more of the electricity produced by the system must be used to provide power to farm equipment and machinery. The system can be connected to the local electrical grid and used to offset the farm's electrical use through a net metering arrangement with the local utility. Applicants need to demonstrate that the farm equipment annually consumes at least half of the amount of electricity annually produced by the Solar PV system. Leased equipment also qualifies for the partial exemption.

Tax Relief for Farmers in California

California farmers can count on saving the sales tax expense for solar PV systems that are purchased and whose solar electricity is used more than 50% for farming.

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State Energy Incentive Details

State:  California

Locality:  

Utility:

Incentive Type:  Sales Tax Incentive

Renewable Type:  Solar PV

Efficiency Type:  

Eligible Sectors:  Agricultural

Recent Changes:  

Goal :  

Hardware Requirements:  At least half of the electricity produced by the system must be used to power agricultural equipment.

Installation Requirements:  

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Maximum Incentive:  

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Amount:  100% of the taxes levied by the State. Local and district sales taxes will still apply.

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Last Review Date:  2012-12-13