42-13056. Taxable value of solar energy devices classified as personal property; depreciated value; definition

A. When characterized as personal property, subject to any applicable constitutional exemption from taxation, the property specified in section 42-11054, subsection C, paragraph 3 shall be valued annually, at its taxable original cost, minus any appropriate depreciation as prescribed by tables adopted by the department. Each taxpayer that owns the property specified in section 42-11054, subsection C, paragraph 3 shall annually report to the assessor in each county where the property is located the taxable original cost of the property.

B. As the annual scheduled depreciated value for this section, the county assessor shall use the depreciation table prescribed by the department for personal property with a ten-year life, based on the date each device or system was placed into service.

C. Notwithstanding any other law, the county assessor shall adjust the depreciation schedules prescribed by the department as follows:

1. For the first tax year of assessment, the assessor shall use three percent of the scheduled depreciated value.

2. For the second tax year of assessment, the assessor shall use three percent of the scheduled depreciated value.

3. For the third tax year of assessment, the assessor shall use three percent of the scheduled depreciated value.

4. For the fourth tax year of assessment, the assessor shall use four percent of the scheduled depreciated value.

5. For the fifth tax year of assessment, the assessor shall use five percent of the scheduled depreciated value.

6. For the sixth tax year of assessment, the assessor shall use six percent of the scheduled depreciated value.

7. For the seventh tax year of assessment, the assessor shall use eight percent of the scheduled depreciated value.

8. For the eighth tax year of assessment, the assessor shall use eleven percent of the scheduled depreciated value.

9. For the ninth tax year of assessment, the assessor shall use twenty-four percent of the scheduled depreciated value.

10. For the tenth tax year of assessment, the assessor shall use one hundred percent of the scheduled depreciated value.

D. For the purposes of this section, " taxable original cost" means the original cost minus the value of any investment tax credits, production tax credits or cash grants in lieu of investment tax credits applicable to the taxable renewable energy equipment.