Solar Energy System New Construction Exclusion by the Initial Purchaser
California law provides a property tax incentive for installing active solar energy systems through a new construction assessment exclusion. This exclusion ensures that adding a qualifying solar energy system does not increase the property’s assessment.
The assessment exclusion remains valid until the solar system changes ownership, at which time the solar system becomes subject to assessment. However, the initial purchaser of a property can receive the benefit of the new construction assessment exclusion under the following conditions:
The owner-builder does not intend to occupy or use the building.
The owner-builder did not receive the active solar energy system exclusion.
The initial purchaser buys the property before it becomes subject to reassessment to the owner-builder.
The initial purchaser submits to the County Assessor a Claim for Solar Energy System New Construction Exclusion (BOE-64-SES) .
