Qualified Energy Property Tax Exemption for Projects 250 kW or Less
Administered by Ohio Development Services Agency
If your residential renewable energy system (solar, wind, geothermal, fuel cells, or other qualified technology) is 250 kW or smaller and was installed after January 1, 2010, it is permanently exempt from Ohio property taxes on both the equipment and a limited amount of land. Contact the Ohio Development Services Agency to confirm eligibility and understand any documentation requirements for your specific installation.
Systems 250 kW or smaller qualify customers for permanent property tax exemption on equipment and associated infrastructure, making this a valuable incentive to highlight during sales. Ensure projects meet the January 1, 2010 or later construction date and confirm system capacity does not exceed 250 kW nameplate capacity (AC); refer customers to the Ohio Development Services Agency for official program documentation and any approval processes.
This permanent property tax exemption applies to qualified renewable energy and advanced energy systems of 250 kW or less (AC nameplate capacity) installed after January 1, 2010, exempting both tangible personal property and real property taxes. Exemptions cover generation equipment, interconnection infrastructure, cables, and up to 0.5 acres of land per wind turbine; sale-leaseback transactions must apply by December 31, 2028. Target residential, commercial, municipal, and cooperative utility sectors; refer larger projects (over 250 kW) to the companion payment-in-lieu program.
Program details
- Program ID
- 4217
- Effective
- 1/1/2010
- Expires
- 12/31/2028
- Last updated
- 9/30/2025
Eligibility
- Sectors
- commercial investor-owned utility municipal utilities residential cooperative utilities
- Technologies
- geothermal electric solar thermal electric solar photovoltaics wind (all) biomass combined heat & power fuel cells using non-renewable fuels wind (small) hydroelectric (small) anaerobic digestion fuel cells using renewable fuels
Program summary
Note: According to the Ohio Development Services Agency website, the owner or lessee subject to the sale-leaseback transaction must apply to Development Services Agency on or before December 31, 2028, to qualify for this tax credit.
Ohio's Renewable and Advanced Energy Project Property Tax Exemption, enacted with the passage of Ohio S.B. 232 in the summer of 2010, exempts qualified energy projects in Ohio from public utility tangible personal property taxes and real property taxes.
Per Ohio Revision Code 5709.53, qualified energy systems of 250 kilowatts (kW) or less will not be subject to payment in lieu of property tax. For qualified energy projects larger than 250 kW, see the DSIRE entry Qualified Energy Property Tax Exemption for Projects over 250 kW (Payment in Lieu) for additional details.
Energy facilities with a nameplate capacity of 250 kilowatts (kW) or less (AC) are permanently exempt from public utility tangible personal property tax and real property taxes. Energy facilities are defined as interconnected solar, wind, or other tangible property used to generate electricity. Under this law, the interconnection equipment, cables, devices, and the land (limited to up to 1/2 acre per wind turbine) are also exempt. Energy facilities built after January 1, 2010, are eligible for this treatment.
Visit the Ohio Development Services Agency's website for additional information, implementation documents, and program documents.
Contact & resources
- Contact email
- energy@development.ohio.gov
- Additional resources
Please verify current program details with the administering agency before making any financial decisions.
