Solar energy could provide tax break
City property owners may soon receive incentive
NORWALK — Residents looking to put solar energy items on their homes could soon receive an additional tax incentive from the city.
Residents installing solar panels, solar shingles, or other types of solarpowered device would not be taxed on that asset for a set period of time, according to a new proposal from Republican Councilman Douglas Hempstead, District D.
The city had language on the books from 1976 until 1991 that allowed any solar asset addition to the property not to be taxed for 15 years.
“I remember thinking about this like 10 years ago and just never followed up on it,” Hempstead said. “Why not bring this back with the sole intent of
trying to encourage — it's another incentive along with the other incentives out there for people to put solar on their own homes and/or commercial buildings.”
Hempstead specified that the tax relief would only be for property owners, so those who rent would not receive the direct benefit.
He also clarified that it would be to provide relief on a specific asset not the overall structure.
“If the solar panels cost me $30,000 and they consider it an asset, an improvement to my house of $30,000 is exempt from any additional property taxes,” Hempstead said.
He proposed the idea to the Common Council’s Ordinance Committee on Tuesday and had a favorable reaction from those in attendance.
Assistant Corporation Counsel Brian Candela said he would work to update the expired language in the code to make it fit today’s standards.
Candela also said he’d look to incorporate language from nearby towns that added an application piece.
“Darien, Stamford and Westport all have some kind of language about filing some kind of application with the tax assessor that puts the onus back on the property owner to go do that so I think that's helpful,” Candela said.
The proposal will be back up for discussion at the committee’s next meeting.