The New York State Department of Taxation and Finance (DOTF) has released a draft of the 2024 solar and wind valuation model for public review and comment. This model is mandatory for assessing wind and solar systems over 1 MW AC, according to Real Property Tax Law § 575-b.
The proposed changes in the draft 2024 model include the incorporation of net energy metering projects, updated discount rates, revenue forecasts, and expense forecasts. The discount rates are based on the weighted average cost of capital (WACC), with separate categories for solar and land-based wind projects. The draft 2024 model also takes inflation into account as a proxy for growth in the development of the WACC.
The draft 2024 model can be viewed on the DOTF’s website, along with the updated instructions and formulas used. Public comments on the model are being accepted until February 27, 2024. After the comment period, the DOTF will make any necessary changes and publish the final model and discount rates for assessors to use in valuing solar and wind energy systems for the next tax assessment cycle.
The industry experts at Ryan will continue to monitor the new model as it progresses and are available to answer questions. Ryan’s Complex Property Tax team has unmatched experience and is uniquely positioned to help renewable energy organizations understand the complexities of multiple tax jurisdictions and their different approaches to valuing and assessing renewable energy property types.
Our team has produced the most comprehensive interactive map backed by extensive jurisdictional research, local knowledge, and relationships in the industry, showcasing valuation methodologies used by the assessing authorities.
TECHNICAL INFORMATION CONTACTS:
Joe Molina
Principal
Ryan
512.960.1081
joe.molina@ryan.com
Jesse Noneman
Principal
Ryan
317.917.3282
jesse.noneman@ryan.com
The material presented in this communication is intended to provide general information only and should solely be seen as broad guidance and not directed to the particular facts or circumstances of any individual who may read this publication. No liability is accepted for acts or omissions taken in reliance upon the content of this piece. Before taking (or not taking) any action, readers should seek professional advice specific to their situation from Ryan, LLC or other tax professionals. For additional information about this topic, please contact us at info@ryan.com