Property taxation: active solar energy systems: extension.

Senator Blakespear's proposal to extend California's property tax exclusion for active solar energy systems would maintain the current treatment of these installations as exempt from reassessment when added to existing properties. The measure specifically targets customer-sited systems installed to manage property owners' electrical needs, while excluding solar pool and hot tub heaters from the tax benefit.

The legislation maintains the existing framework where qualifying solar installations do not trigger property tax increases until a change in ownership occurs. This applies to systems that collect, store, or distribute solar energy for purposes including water heating, space conditioning, electricity production, and process heat. For new construction, initial purchasers of buildings with integrated solar systems may claim the exclusion by filing documentation with county assessors detailing the system's value and any applicable rebates.

Local governments would not receive state reimbursement for property tax revenue reductions resulting from the continued exclusion. The measure requires county assessors to process exclusion claims and adjust property valuations accordingly, with the State Board of Equalization and California Assessors' Association developing standardized procedures for implementation. The provisions would take effect for the 2026-27 fiscal year, replacing the current exclusion set to expire on January 1, 2027.