Renewable Energy Systems Property Tax Exemption

The Renewable Energy Systems Property Tax Exemption in Nevada is a financial incentive aimed at encouraging the use of renewable energy sources within the state’s commercial, industrial, and agricultural sectors. Initiated on July 1, 1983, and overseen by the Nevada Department of Taxation, this incentive allows property owners to completely exempt the value of certain renewable energy installations from their property taxes. The eligible technologies for this exemption are comprehensive and include passive solar, solar water heating, solar space heating, photovoltaic systems, wind turbines (both large and small scale), geothermal electric, hydroelectric installations (including smaller-scale projects), geothermal heat pumps, direct-use geothermal, and municipal solid waste energy systems.

The primary condition for eligibility is that the renewable energy system must serve a commercial or industrial building or an agricultural irrigation system, providing heating, cooling, or electricity. The 2011 amendment clarified that renewable energy systems installed on one or more buildings can qualify for the exemption even if they supply energy to adjacent buildings or are used in agricultural operations beyond just the initial installation site.

There’s no cap on the amount of property tax exemption a property owner can claim under this program, making it a highly attractive incentive for larger renewable energy projects. However, it’s important to note that if a property owner claims any other form of state tax abatement or exemption for the building, they cannot simultaneously claim the renewable energy property tax exemption. This provision ensures that benefits are not doubly claimed for the same installation, aligning with the state’s broader goals of promoting renewable energy adoption while maintaining fair tax practices.