The Qualified Energy Project Tax Exemption provides owners (or lessees) of renewable energy projects with an exemption from the public utility tangible personal property tax.
In order to qualify, the owner or lessee subject to sale leaseback transaction must apply to the Ohio Department of Development on or before December 31, 2022 for renewable energy projects.
Large projects (above 20 mega-watts) require approval from each Board of County Commissioners in which the project is located. In addition, these large projects require agreements to train and equip local emergency responders, as well as repair roadway infrastructure following the construction of the project. Small projects (less than 250 kilowatts) are exempt as a matter of law pursuant to Ohio Revised Code Section 5709.53
If the project meets the requirements of the exemption, then the Director of Development will certify the project as a "Qualify Energy Project." Qualified Energy Projects will remain exempt from taxation so long as the project is completed within the statutory deadlines, meets the "Ohio Jobs Requirement," and continues to meet several ongoing obligations including providing Development with project information on an annual basis.
How to Apply
Potential applicants should review the revised rules to determine whether they should file an application to become a Qualified Energy Project. The revised Ohio Revised Code and the Ohio Administrative Code can be found under “Program Information” to the left.
Please note, potential applicants with questions regarding the financial impact of a tax exemption should consult a private professional tax adviser.