On February 21, Legislative Director Kevin Kinnally testified before the Economic Matters Committee to oppose HB 1111 – Public Utilities – Solar Energy Generating Systems – Floating Systems and Systems Located on Brownfields.
This bill generally exempts floating solar systems and brownfield solar projects from local property taxation.
While MACo opposes the bill, the sponsor agreed to amendments to strike the mandated property tax exemptions and instead authorize counties to negotiate Payment in Lieu of Taxes (PILOT) agreements.
The amendments respect local authority by allowing property tax exemptions, rather than mandating, ensuring counties can negotiate PILOT agreements that balance economic development goals with essential revenue needs. This approach will enable counties to assess projects case-by-case while protecting local budgets from unfunded mandates. With these amendments, MACo would drop its opposition.
Counties support the expansion of solar energy but must also balance fiscal responsibilities for infrastructure, emergency services, and community development. With growing budgetary pressures, eliminating this revenue source without a viable alternative would further strain local limited resources and limit essential services.
HB 1111 was heard in the opposite chamber, the Education, Energy, and the Environment Committee, on April 3. MACo submitted written testimony in support of this bill with amendments.
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