AN ACT TO PHASE OUT the property tax exclusion for solar energy electric systems.

The General Assembly of North Carolina enacts:

SECTION 1.  Effective for taxable years beginning on or after July 1, 2026, G.S. 105‑275(45) reads as rewritten:

(45)    Eighty percent (80%) Sixty percent (60%) of the appraised value of a solar energy electric system. For purposes of this subdivision, the term solar energy electric system means all equipment used directly and exclusively for the conversion of solar energy to electricity.

SECTION 2.  Effective for taxable years beginning on or after July 1, 2027, G.S. 105‑275(45), as amended by Section 1 of this act, reads as rewritten:

(45)    Sixty percent (60%) Forty percent (40%) of the appraised value of a solar energy electric system. For purposes of this subdivision, the term solar energy electric system means all equipment used directly and exclusively for the conversion of solar energy to electricity.

SECTION 3.  Effective for taxable years beginning on or after July 1, 2028, G.S. 105‑275(45), as amended by Section 2 of this act, reads as rewritten:

(45)    Forty percent (40%) Twenty percent (20%) of the appraised value of a solar energy electric system. For purposes of this subdivision, the term solar energy electric system means all equipment used directly and exclusively for the conversion of solar energy to electricity.

SECTION 4.  Effective for taxable years beginning on or after July 1, 2029, G.S. 105‑275(45) is repealed.

SECTION 5.  Except as otherwise provided, this act is effective when it becomes law.