Wind Energy Systems Exemption

Tennessee House Bill 809, enacted into law in Public Chapter 377, Acts of 2003 and codified under Title 67, Chapter 5, states that wind energy systems operated by public utilities, businesses or industrial facilities shall not be taxed at more than one-third of their total installed cost. This law applies to the initial appraisal and subsequent appraisals of wind energy systems, based on a reduced generation capacity of 2/3 due to intermittent production. Assessors and the comptroller takes the 1/3 capacity factor findings into account when assigning value when the property is appraised or reappraised.