On September 17, 2021, the New York State Department of Taxation and Finance came out with a second (revised) preliminary appraisal model for assessing solar and wind energy projects. Its initial preliminary appraisal model was issued on August 2, 2021. Comments on both proposed property tax assessment models are due on October 1, 2021.
All local taxing jurisdictions in New York will require the use of the tax assessment model to assess renewable energy projects. Publication and use of a uniform methodology for assessing renewable projects is one of several recent changes to the New York Real Property Tax Laws (RPTL) that the state recently enacted to promote solar, wind, and other renewable energy projects.
One of those changes was requiring local tax assessors to adopt a uniform income capitalization, or discounted cash flow, valuation approach to assess renewable energy property. An income capitalization approach values the project using the net present value of a project’s future cash flows using