Senate Bill No. 256-Senators Titus, Wiener, Augustine, Adler, Coffin, Jacobsen, Neal, O'Donnell, Rawson, Regan, Schneider, Shaffer, James, Washington and McGinness

April 2, 1997
____________

Referred to Committee on Taxation

SUMMARY--Provides exemption from property tax for property used as facility for production of electrical energy from renewable energy resource. (BDR 32-33)

FISCAL NOTE: Effect on Local Government: Yes.
Effect on the State or on Industrial Insurance: Yes.

EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.

AN ACT relating to taxation; providing an exemption from property tax for property used as a facility for the production of electrical energy from a renewable energy resource; and providing other matters properly relating thereto.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1 Chapter 361 of NRS is hereby amended by adding thereto a new section to read as follows:
1. All property, both real and personal, is exempt from taxation as set forth in this section to the extent that the property is used as a facility for the production of electrical energy from one or more renewable energy resources.
2. Personal property exempted pursuant to subsection 1 may not receive an exemption for more than 10 consecutive years.
3. Real property exempted pursuant to subsection 1 may not receive an exemption for more than 20 consecutive years.
4. As used in this section:
(a) "Facility for the production of electrical energy from one or more renewable energy resources" means a facility which uses renewable energy as its primary fuel in the production of electricity. The term includes all the equipment in the facility used to process and convert into electricity the energy derived from a renewable energy resource.
(b) "Renewable energy resource" means a resource from which electricity is produced, but which is not consumed or combusted and is naturally regenerated, including, without limitation:
(1) Wind;
(2) Solar energy;
(3) Geothermal energy; and
(4) Pumped-storage hydropower, but only if the source of the energy used to pump the water is not a fossil fuel.
Sec. 2 This act becomes effective on July 1, 1997.

30