Updates to Real Property Taxation of Solar and Wind Energy Systems in New York State: 2024 Model and Recent Litigation

The battle over the appraisal methodology for solar and wind energy projects in New York State continues to heat up as the updated Model for 2024 faces legal challenges. Enacted in 2020, Section 575-b of the Real Property Tax Law requires that these projects be assessed using the Discounted Cash Flow (DCF) methodology with a model formula and discount rates set by the NYS Department of Taxation and Finance (DOTF).

The updated Model, effective May 1, 2024, includes changes such as incorporating net energy metering projects, defaulting to the highest credit amount for market transition credits/community credits and community adders, and updating revenue forecasts, expense forecasts, and discount rates. Despite these updates, a group of local assessors and municipal officials recently sought a temporary restraining order to prevent the implementation of the 2024 Model. While the TRO request was denied, a preliminary injunction hearing is scheduled for May 24, 2024.

This legal battle echoes previous litigation in Town of Blenheim, where similar challenges were raised but ultimately resolved after action by the State Legislature. The State’s efforts to encourage renewable project development through Section 575-b and other initiatives are ongoing, with a focus on promoting sustainable energy practices in New York State.

For more information on the ongoing legal challenges and the state’s renewable energy initiatives, you can refer to the full article on the Farrell Fritz website. Stay tuned for updates on the outcome of the preliminary injunction hearing and the future of solar and wind energy project appraisal in New York State.