What changes
The bill would classify large-scale battery energy storage systems similarly to manufacturing facilities for the purpose of ad valorem tax exemptions.
Who is affected
Energy companies operating utility-scale battery systems, local municipalities, and school districts that rely on property tax revenue.
Requirements and enforcement
Entities must file applications for the exemption; specific operational definitions for eligible 'battery energy storage systems' are required.
Costs and funding
Direct reduction in property tax collections for local jurisdictions.
When it takes effect
Pocket vetoed on 06/01/2026; legislation is currently inactive.
Potential benefits
Promotes investment in grid-scale energy storage, potentially increasing grid reliability and supporting renewable energy adoption.
Risks and tradeoffs
Impact on the fiscal health of local communities and school funding due to the potential reduction in the taxable property base.
What is still unknown
The exact criteria for the exemption application and the total projected revenue loss to local governments remain unstated.