SB 672

This bill expands the types of property that qualify for the sales and use tax

exemption provided under current law for products whose power source is wind,

solar radiation, or gas generated from the digestion of animal manure and other

agricultural waste. Currently, a rule promulgated by the Department of Revenue

defines “product” to exclude tangible personal property that consumes or is used to

store electricity or heat produced by a product that qualifies for the exemption, a

foundation for the product, and property necessary to convey, transfer, or alter

electricity or heat generated by the product.

Under the bill, the sales and use tax exemption applies to tangible personal

property that is used to store electricity or heat and has at least one kilowatt of

energy storage capacity, other than batteries for use in electric vehicles, and the

hardware required for installation of such property. The bill also repeals the section

of the DOR rule that defines “product” to exclude tangible personal property that is

used to store electricity or heat produced by a product that qualifies for the

exemption.

Because this bill relates to an exemption from state or local taxes, it may be

referred to the Joint Survey Committee on Tax Exemptions for a report to be printed

as an appendix to the bill.