Property taxation: active solar energy systems: extension.

Senator Blakespear's property tax legislation extends and refines California's tax treatment of active solar energy systems, establishing new qualification criteria while maintaining existing exclusions from property tax reassessment. The measure amends current law to continue indefinitely the exclusion of qualifying solar installations from being classified as "newly constructed" for property tax purposes, a provision previously set to expire in 2027.

The bill introduces specific parameters for systems to qualify for the tax exclusion. Eligible installations must be thermally isolated from living spaces and meet detailed technical requirements regarding capacity and connection. For residential properties, systems must be physically attached to or located on the same parcel as dwellings where at least two-thirds of the square footage serves residential uses. Commercial installations face additional restrictions, including capacity limits of one megawatt for standard systems or up to five megawatts under certain utility agreements.

Local tax assessors retain responsibility for evaluating exclusion claims and determining the value of qualifying solar installations, though the state will not reimburse agencies for associated revenue reductions. Property owners must file claims within three years of purchase or system completion to receive the exclusion, which remains in effect until ownership changes. The legislation takes effect immediately upon enactment as a tax levy, with provisions applying to property tax lien dates beginning January 1, 2026.