Local Option - Property Tax Exemption for Renewable Energy Systems

If you live in Alaska, your municipality may exempt your home's renewable energy system, such as solar, wind, or small hydro, from property taxes, which can keep the system from raising your tax bill. Because the exemption is a local option, contact your city or borough assessor's office to find out whether it is offered where you live and how to claim it.

Where a municipality has adopted the exemption, residential customers can add a renewable energy system, such as solar, wind, hydro, or biomass, without paying property tax on it, which can make your installations more appealing. Availability and requirements vary by locality, so check with the local assessor before quoting the benefit to customers.

Alaska's June 2010 legislation authorizes municipalities to adopt ordinances exempting residential renewable energy systems from property taxation, so each locality decides whether to participate and sets its own administration. Eligible systems use an energy source other than fossil or nuclear fuel, including wind, hydro, and solar, and the exemption is aimed at residential property owners. It works as a forgone local property tax, so there is no state program funding.