OAR 150-307-0210
Property Tax Status of Alternative Energy Systems

(1)

Definitions:

(a)

“Alternative energy system” means a solar, geothermal, wind, water, fuel cell or methane gas energy system used for the purpose of heating, cooling or generating electricity.

(A)

Solar alternative energy systems use the sun and may include but are not limited to:
(i)
Solar electric or photovoltaic (PV) systems that consist of solar electric panels (photovoltaic cells) that convert sunlight directly into electricity and may include connective wiring, solar electric modules, inverter, mounting system, disconnection equipment, net-metering system, and storage batteries,
(ii)
Solar heating or cooling systems that consist of active, passive, and thermal systems used for water, or space heating or cooling and may include south facing windows, trombe walls, extra thick concrete/stone floors designed for the absorption of heat, thermal chimneys, solar panels or collectors which directly heat coils of water on the roof or outside walls, extra hot water storage tanks, connecting piping, sensors, valves, pumps, heat exchangers, and controls.

(B)

Geothermal alternative energy systems use heat extracted from the earth and may include but are not limited to geothermal heat pumps (GHPs), which can be used for both heating and cooling of buildings and hot water needs.
(i)
Ground source geothermal heat pumps consist of buried loops or coils of tubing used to exchange heat.
(ii)
Water source geothermal heat pumps consist of loops submerged in a lake, pond or well.

(C)

Wind alternative energy systems produce mechanical or electrical power or energy. Wind turbines typically consist of a propeller driven generator attached to a building or tower used to drive a direct current generator which is generally tied to a battery storage system and used to power household or business needs. The system may be connected to a net-metering system or be completely off-grid. These systems may include:
(i)
Small stand-alone wind turbines.
(ii)
Groups of wind turbines.

(D)

Water alternative energy systems or hydropower systems are used to generate electricity. These systems may include but are not limited to micro hydro systems which are small-scale facilities providing electricity to power homes, small farms, and businesses. Micro hydro systems typically consist of a small water drive wheel or turbine which is connected to an electric generator and the output is connected to the user by power wiring. These systems may include a storage battery system and net-metering system.

(E)

Fuel cell alternative energy systems produce electricity electrochemically and non-reversibly, using hydrogen-rich fuel and oxygen, producing an electric current, water, and thermal energy. These systems may include but are not limited to fuel cell systems using reformed fossil fuels which also produce carbon dioxide.

(F)

Methane gas alternative energy systems are typically gas collection systems used to fuel an electric generator and may also include methane digester systems. These systems may include but are not limited to:
(i)
Methane collection systems installed at closed or partially closed land fills and used to fuel electric generator systems.
(ii)
Methane digester systems owned by and installed at dairy farms and used to generate power.

(b)

“Onsite” means a single, operationally integrated complex of property or properties composed of a single parcel of land and improvements thereon or a group of adjacent parcels and improvements thereon.

(2)

Alternative energy systems qualify for exemption only if the system is a net metering facility, as defined in ORS 757.300 (Net metering facility allowed to connect to public utility), or is primarily designed to offset onsite electricity use.
Example 1: A company installs solar panels to generate electricity. The solar energy system is installed as a net metering facility. Therefore, the solar energy system qualifies for the property tax exemption.
Example 2: A utility owns a large wind generating farm. The system is not a net metering facility nor is it designed to offset onsite electricity use. Therefore, the wind energy system does not qualify for the property tax exemption.
Example 3: A methane collection system installed at a closed portion of an otherwise active landfill is used to fuel an electric generating facility to produce electricity used to offset power use at the active portion of the landfill. The system qualifies for the property tax exemption.
Example 4: A methane digester system installed at a dairy farm is used to fuel an electric generator system to generate power for the dairy farm’s operations. This qualifies for exemption.
Example 5: An industrial facility installs a methane collection system where methane gas is compressed and used as a fuel source to generate electricity for the facility’s operations. This qualifies for exemption.

(3)

Alternative energy systems that provide heating, cooling or that generate electrical energy for personal consumption qualify for the property tax exemption only to the extent that they are primarily designed to offset onsite electricity use or are net metering facilities.

(4)

Alternative energy system devices and components are exempt to the extent that they add real market value (RMV) to the property. Additional value accruing to property to which a qualified alternative energy system is installed due to the existence of such a system is exempt.

(5)

Examples of property that typically do not qualify for the exemption include but are not limited to porches, sunrooms, solariums, and greenhouses.

Source: Rule 150-307-0210 — Property Tax Status of Alternative Energy Systems, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=150-307-0210.

150‑307‑0010
Real Property 150‑307‑0020
Personal Property Definitions 150‑307‑0030
Personal Property 150‑307‑0040
Taxation of Property Associated with Mining Claims on Federal Land 150‑307‑0050
Public Property Leased or Rented by Taxable Owner 150‑307‑0060
Property Held Under Lease 150‑307‑0070
Property Used for Public Park or Recreation 150‑307‑0080
Guidelines for Exempt Port Property Subject to In Lieu Tax 150‑307‑0090
Request For Computation of In Lieu Tax Payment 150‑307‑0100
Strategic Investment Program 150‑307‑0120
Review Required in Determining Exempt Status of Property for Charitable Institutions 150‑307‑0130
Literary Institution Defined 150‑307‑0140
Minimum Criteria Required in Determining Exempt Status of Property for Religious Organizations 150‑307‑0150
Parsonage and Caretaker Residence Exemption Guidelines 150‑307‑0160
Definition of Schools and Academies 150‑307‑0170
Senior Center Property Exemption 150‑307‑0180
Burial Grounds, Cemeteries, Crematories 150‑307‑0190
Application Process for Property Tax Exemption 150‑307‑0200
Property of Exempt Entities Leased to Other Exempt Entities 150‑307‑0210
Property Tax Status of Alternative Energy Systems 150‑307‑0220
Qualifications for Exemption of Indian Properties 150‑307‑0230
Valuation of Summer Home Properties 150‑307‑0240
Exception To Taxable Personal Property 150‑307‑0250
Water Association Qualifications 150‑307‑0260
Water Association Exemption Under ORS 307.210 Is Assessor’s Responsibility 150‑307‑0270
Jurisdiction Over Assessment of Telephonic Companies 150‑307‑0280
Qualifications for Exemption of Mutual or Cooperative Telephone Associations 150‑307‑0290
Jurisdiction over Assessment of Non-public Telephonic Systems 150‑307‑0300
Qualifications for Exemption for Privately Owned Telephone Systems 150‑307‑0310
Application for Exemption Under ORS 307.220 or 307.230 150‑307‑0320
Definition of Elderly 150‑307‑0330
Exemption Claim Procedures 150‑307‑0340
Defining "Surviving Spouse” of a Veteran 150‑307‑0350
Veteran’s Exemption for Surviving Spouse 150‑307‑0360
Physician Certification of Disability for Exemption 150‑307‑0370
Property to Which Veteran’s Exemption Applies 150‑307‑0380
Transfer of Veteran’s Exemption to a Different Property Requires Refiling 150‑307‑0390
Veterans Property Held in Trust 150‑307‑0400
Oregon Active Military Service Member’s Exemption — Eligibility 150‑307‑0410
Oregon Active Military Service Member’s Exemption Claimed By Lawful Occupant 150‑307‑0420
Agricultural Land Devoted to Agricultural Purposes as Real Property 150‑307‑0430
Exemption of Buildings, Structures and Machinery or Equipment during Construction 150‑307‑0440
War Veterans Filing a Claim for Exemption if Living in a Nonprofit Home for the Elderly 150‑307‑0450
Nonprofit Home for the Elderly 150‑307‑0460
Personal Property Used for Placing Farm Crops in Storage 150‑307‑0480
Pollution Control Facilities 150‑307‑0490
Oregon Food Processor Property Tax Exemption 150‑307‑0500
Hardship Situations 150‑307‑0510
Agricultural Workforce Housing and Farm Labor Camp Assessment 150‑307‑0520
Filing a Claim for Exemption When a Farm Labor Camp or Child Care Facility is Acquired 150‑307‑0530
Certification of Nonprofit Corporation Low Income Housing Exemption to County Assessor 150‑307‑0700
Rural Health Care Facilities 150‑307‑0710
Definitions 150‑307‑0720
Filing Requirements 150‑307‑0800
Vertical Housing Development Zone Program 150‑307‑0900
Qualified Heavy Equipment and Qualified Heavy Equipment Rental Providers - Definitions and Responsibilities 150‑307‑0905
Equipment and Tools Subject to the Heavy Equipment Rental Tax 150‑307‑0910
Cost of Heavy Equipment Operator’s Service Not Subject to Rental Tax 150‑307‑0915
Heavy Equipment Rental Tax Exemptions 150‑307‑0920
Long Term Rental Agreements
Last Updated

Jun. 8, 2021

Rule 150-307-0210’s source at or​.us