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Incentives/Policies for Renewables & Efficiency

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Green Energy Property Tax Assessment   

Last DSIRE Review: 07/06/2012
Program Overview:
State: Tennessee
Incentive Type: Property Tax Incentive
Eligible Renewable/Other Technologies: Photovoltaics, Wind, Geothermal Electric, Hydrogen
Applicable Sectors: Commercial, Industrial, Residential, Utility, Municipal Utility, Investor-Owned Utility, Rural Electric Cooperative, Agricultural
Amount:Wind property assessed value may not exceed 1/3 of total installed costs
Solar property assessed value may not exceed 12.5% of total installed costs
Other technologies vary
Equipment Requirements:Must be certified green energy production facility
Start Date:06/30/10
Authority 1:
Date Enacted:
Date Effective:
H.B. 62
Authority 2:
Date Effective:
Tenn. Code ยง 67-5-601 et seq.

Tennessee offers a special ad valorem property tax assessment for certified green energy production facilities. Property that generates electricity from a certified facility shall be assessed as follows:

  • Wind property shall be assessed at a value of no more than one-third of total installed costs;
  • Solar property shall be assessed at a value of no more than 12.5% of total installed costs;
  • All other qualifying green energy property shall be assessed at a value determined by the State Board of Equalization and Department of Environment and Conservation (TDEC)

These assessment rates are effective January 1, 2013. TDEC defines and certifies facilities based upon production of electricity for use and consumption off the premises using clean energy technology, which is defined as technology used to generate energy from geothermal, hydrogen, solar, and wind sources. The effective date of the property valuation provided is January 1, of the year for which the valuation is claimed. A copy of the facility certification must be provied by the property owner to the comptroller's office by March 1 of the same year. The comptroller must advise the assessor of the locations of any certified green energy property and must advise the assessor as to whether the property should be assessed locally or centrally.

  Taxpayer Assistance
Office of State Assessessed Property
505 Deaderick St Suite 1700
Nashville, TN 37243-1402
Phone: (615) 741-0140
Web Site:
NCSU - home
Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2013 - 2014 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.