Tax & Accounting Blog

Idaho Levels the Playing Field with New Solar Energy Tax

Blog, Indirect Tax April 12, 2016

In an attempt to level the playing field for generators of electricity, Idaho recently enacted House Bill 534. Among other provisions, HB 534 amends Idaho Code sec. 63-3502B(2) and imposes a 3.5% tax on every producer of electricity by means of solar energy based on the gross solar energy earnings of the producer. A similar 3.5% tax is already on the books for other energy producers, such as cooperative electrical associations, natural gas, wind energy, and geothermal electrical energy producers.

Although solar energy producers will now be required to remit the 3.5% tax on their gross earnings there is some tax relief for solar energy producers. An exemption was also included in HB 534 which exempts the operating property of solar energy producers from property tax. The new tax goes into effect on July 1, 2016.

Written by Ted Stock.