As large solar arrays have proliferated across Connecticut in the last decade, so have questions about how much tax revenue local governments can draw from the fields of panels. For years, state law gave municipalities and their tax assessors the leeway to determine the value of solar panels and other equipment subject to personal property taxes. At the same time, developers could seek a variety of tax exemptions on their projects allowing them to drastically reduce — or in some cases eliminate — their local tax obligations. Towns have faced challenges even with projects that don’t qualify for tax exemptions, because the value of solar panels tends to depreciate quickly. In some cases that’s left towns with budgetary holes to fill in the years following a project’s initial installation. As a result, litigation has erupted in some towns over tax bills for solar projects. Fearing financial uncertainty, both developers and municipal leaders have negotiated deals to stabilize their tax payments and provide more predictability to both parties. They’ve also appealed to lawmakers for a long-term solution.

https://ctmirror.org/2026/07/15/ct-new-law-solar-array-property-taxes/