Battery Energy Storage Business Equipment Tax Exemption

Maine grants a 100% property tax exemption for battery storage systems placed in service on or after April 1, 2026, if more than 50% of the system's output serves your on-site load or you had an executed utility interconnection agreement by January 1, 2025. This exemption applies to your property taxes, reducing your annual tax burden on the battery equipment. To apply, work with Maine Revenue Services through their Business Equipment Tax Exemption (BETE) program using their BETE Application form.

Battery storage systems serving Maine commercial customers can qualify for a 100% property tax exemption under the BETE program if they meet the behind-the-meter (over 50% on-site load) or interconnection agreement requirement (executed by January 1, 2025), with exemption effective for tax years beginning April 1, 2026 or later. This tax benefit reduces your customers' operating costs and makes battery projects more financially attractive. Ensure customers understand the interconnection deadline and document that their system meets the on-site load threshold when filing the BETE application with Maine Revenue Services.

The Battery Energy Storage Business Equipment Tax Exemption is a 100% property tax exemption administered through Maine's existing BETE program for eligible property first subject to tax on or after April 1, 2026. Eligibility requires either more than 50% of battery output serving an on-site behind-the-meter load, or an executed utility interconnection agreement dated by January 1, 2025; systems not meeting these criteria are ineligible. This exemption targets commercial battery storage deployment and operates within Maine's broader business equipment tax incentive framework alongside the BETR reimbursement program for older property.