Sec. 1. 36 MRSA §501, sub-§11 is enacted to read:

11.__Alternative power system.__"Alternative power system" means a power production system with a capacity that does not exceed 100 megawatts and that relies on fuel cells, tidal power, solar arrays and installations, wind power installations, geothermal installations, hydroelectric generators, biomass generators or generators fueled by municipal solid waste in conjunction with recycling.

Sec. 2. 36 MRSA §551, as amended by PL 1975, c. 252, §14, is further amended to read:

§551. Real estate; defined

Real estate, for the purposes of taxation, shall include includes all lands in the State and all buildings, mobile homes and other things affixed to the same lands, such as, but not limited to, camp trailers, together with the water power, shore privileges and rights, forests and mineral deposits appertaining thereto; interests and improvements in land, the fee of which is in the State; interests by contract or otherwise in real estate exempt from taxation; and lines of electric light and power companies. Buildings, mobile homes and other things affixed to the land, on leased land or on land not owned by the owner of the buildings, shall be are considered real estate for purposes of taxation and shall be are taxed in the place where said the land is located. Mobile homes, except stock in trade, shall be are considered real estate for purposes of taxation. An improvement to real estate related to the operation of an alternative power system is exempt from taxation under this subchapter.

Sec. 3. Application. This Act applies to property tax years beginning on or after April 1, 2006.

SUMMARY

This bill exempts alternative power systems, including solar, wind and hydroelectric generators, from property tax.