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In Oregon, Real Property with an alternative energy system installed on it is exempt from taxation to the extent that the tax is based on any increase in the real market value caused by the alternative energy system. ORS 307.175. The law expires in 2012. The alternative energy system can be for heating, cooling or electrical generation. The alternative energy systems covered are solar, geothermal, wind, water, fuel cell or methane gas. OAR 150-307-175. The exemption is not available to those whose primary purpose is the production, transportation or distribution of energy. However, commencing on July 1, 2007 , there is an exception that makes the exemption available if the system is equipped with net metering or another system primarily designed to offset onside electrical use.

For questions or more information contact srs@bhlaw.com.

[1] 2007 Or Laws Ch 885