                                 CODE OF VIRGINIA

CERTIFIED SOLAR ENERGY EQUIPMENT, FACILITIES, OR DEVICES AND CERTIFIED RECYCLING
EQUIPMENT, FACILITIES, OR DEVICES (§ 58.1-3661)

A. Any solar facility installed pursuant to subsections A or B of &#xA7;
15.2-2288.7 with a nameplate rated electrical generating capacity measured in
direct current kilowatts of not more than 25 kilowatts is hereby declared to be
a separate class of property and shall constitute a classification for local
taxation separate from other classifications of real or personal property. Such
facilities shall be wholly exempt from state and local taxation pursuant to
Article X, &#xA7; 6 (d) of the Constitution of Virginia.

B. Certified solar energy equipment, facilities, or devices and certified
recycling equipment, facilities, or devices, as defined herein, are hereby
declared to be a separate class of property and shall constitute a
classification for local taxation separate from other classifications of real or
personal property. The governing body of any county, city or town may, by
ordinance, exempt or partially exempt such property from local taxation in the
manner provided by subsection E.

C. As used in this section:
			&#8220;Certified recycling equipment, facilities, or devices&#8221; means
machinery and equipment which is certified by the Department of Environmental
Quality as integral to the recycling process and for use primarily for the
purpose of abating or preventing pollution of the atmosphere or waters of the
Commonwealth, and used in manufacturing facilities or plant units which
manufacture, process, compound, or produce for sale recyclable items of tangible
personal property at fixed locations in the Commonwealth.
			&#8220;Certified solar energy equipment, facilities, or devices&#8221; means
any property, including real or personal property, equipment, facilities, or
devices, excluding any portion of such property that is exempt under &#xA7;
58.1-3660, certified by the local certifying authority to be designed and used
primarily for the purpose of collecting, generating, transferring, or storing
thermal or electric energy.
			&#8220;Local certifying authority&#8221; means the local building departments
or the Department of Environmental Quality. The State Board of Housing and
Community Development shall promulgate regulations setting forth criteria for
certifiable solar energy equipment. The Department of Environmental Quality
shall promulgate regulations establishing criteria for recycling equipment,
facilities, or devices.

D. Any person residing in a county, city or town which has adopted an ordinance
pursuant to subsection B may proceed to have solar energy equipment, facilities,
or devices certified as exempt, wholly or partially, from taxation by applying
to the local building department. If, after examination of such equipment,
facility, or device, the local building department determines that the unit
primarily performs any of the functions set forth in subsection C and conforms
to the requirements set by regulations of the Board of Housing and Community
Development, such department shall approve and certify such application. The
local department shall forthwith transmit to the local assessing officer those
applications properly approved and certified by the local building department as
meeting all requirements qualifying such equipment, facility, or device for
exemption from taxation. Any person aggrieved by a decision of the local
building department may appeal such decision to the local board of building code
appeals, which may affirm or reverse such decision.

E. Upon receipt of the certificate from the local building department or the
Department of Environmental Quality, the local assessing officer shall, if such
local ordinance is in effect, proceed to determine the value of such qualifying
solar energy equipment, facilities, or devices or certified recycling equipment,
facilities, or devices. The exemption provided by this section shall be
determined by applying the local tax rate to the value of such equipment,
facilities, or devices and subtracting such amount, wholly or partially, either
(i) from the total real property tax due on the real property to which such
equipment, facilities, or devices are attached or (ii) if such equipment,
facilities, or devices are taxable as machinery and tools under &#xA7;
58.1-3507, from the total machinery and tools tax due on such equipment,
facilities, or devices, at the election of the taxpayer. This exemption shall be
effective beginning in the next succeeding tax year and shall be permitted for a
term of not less than five years; however, if the taxpayer installs equipment,
facilities, or devices and obtains certification for such equipment, facilities,
or devices within one year of installation, the locality may provide by
ordinance that the exemption shall be effective as of the date of installation,
and if the taxpayer has paid any taxes on such equipment, facilities, or
devices, the locality shall reimburse the taxpayer for any such taxes paid. In
the event the locality assesses real estate pursuant to &#xA7; 58.1-3292, the
exemption shall be first effective when such real estate is first assessed, but
not prior to the date of such application for exemption.

F. It shall be presumed for purposes of the administration of ordinances
pursuant to this section, and for no other purposes, that the value of such
qualifying solar energy equipment, facilities, and devices is not less than the
normal cost of purchasing and installing such equipment, facilities, and
devices.

HISTORY: Code 1950, § 58-16.4; 1977, c. 561; 1984, c. 675; 1988, c. 253; 1990,
c. 690; 1998, c. 606; 2014, cc. 259, 737; 2016, c. 346; 2020, c. 633; 2022, c.
496.