Renewable Energy Tax Study

Renewable Energy Tax Study 

The Maine Department of Energy Resources (DOER, formerly the Governor’s Energy Office) is conducting a study to examine and evaluate the system of taxation of renewable energy infrastructure, pursuant to Resolves 2025, Ch. 116, “Resolve, to Require the Governor's Energy Office to Study Taxation of Renewable Energy Infrastructure” (PDF link).  

The purpose of this study is to examine and evaluate the current system of taxation of renewable energy infrastructure and possible adoption of a uniform capacity tax for renewable energy infrastructure. To satisfy the requirements of the Resolve, DOER is required to examine and evaluate: 

1. The current statutory framework for the application of personal and real property taxes on renewable energy infrastructure, including, but not limited to, solar photovoltaic systems, wind energy development and battery energy storage systems;  
2. The history of municipal and county taxation of renewable energy infrastructure in the State, as well as in other states;  
3. How tax revenue from new renewable energy infrastructure projects may affect state-municipal revenue-sharing formulas, including the effect of renewable energy infrastructure value depreciation;  
4. Whether renewable energy infrastructure presents special difficulties with identifying just value;  
5. What tax amount per megawatt of electric generation capacity of renewable energy infrastructure projects, if any, would fairly compensate municipalities without making such projects unviable;  
6. The current use, complexity, cost and appropriateness of programs such as tax increment financing and credit enhancement agreements for renewable energy infrastructure and whether an alternative program may benefit municipalities, counties and renewable energy infrastructure development in the State; and  
7. Whether a uniform taxation of renewable energy infrastructure and exclusion of such revenue from state-municipal revenue-sharing formulas may encourage renewable energy infrastructure development, advance the State's clean energy goals and benefit municipalities and counties in the State.

Stakeholder Engagement 

DOER anticipates conducting stakeholder engagement associated with this study in 2026, including consultation with the Office of Tax Policy, industry members, and other entities with relevant expertise at the state, municipal, and county levels. There will be an opportunity for public comment on a draft of the study later this year, and the final study will be submitted to the Maine Legislature by November 6, 2026.