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Solar property tax exclusion ends Jan. 1, 2027 — finish your solar install before then or it adds to your assessment

Phone number
530-265-1232 (Nevada County Assessor)
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Eligibility
California property owners installing a qualifying active solar energy system; installation must be complete before Jan. 1, 2027
Auto Summary
California's active solar energy system new construction exclusion is repealed effective Jan. 1, 2027 (BOE Letter to Assessors No. 2026/034). A qualifying system must be completed before Jan. 1 to be excluded; one still under construction on Jan. 1 is assessed as new construction and raises your property taxes. Systems that qualify before the deadline stay excluded until the property changes ownership. No extension has been enacted. Verified 2026-09-28.
Value
Solar system value excluded from property tax assessment (if completed before Jan. 1, 2027)
Espanol
La exclusión del impuesto a la propiedad por sistemas solares termina el 1 de enero de 2027 — termine su instalación solar antes o se sumará a su tasación
URL
nevadacountyca.gov/m/newsf...ail/8904
Deadline: installation completed before January 1, 2027.
California has excluded the value of new active solar energy systems from property tax assessment since 1980. That exclusion ends January 1, 2027. The State Board of Equalization confirmed it in Letter to Assessors No. 2026/034 (Sept. 1, 2026).

What it means for you (Nevada County Assessor)

  • Completed before Jan. 1: your qualifying system is excluded, and it stays excluded until the property changes ownership.
  • Still under construction on Jan. 1: it will not qualify, and it is assessed as new construction.
  • Installed after the exclusion ends: the market value of the solar system is added to your existing assessment, which raises your property taxes. The county's example: on a property assessed at $300,000, the solar system's assessable value is added to the $300,000.
  • "Although legislation has been considered to further extend or modify the exclusion, no extension has been enacted." Don't assume it will be extended, and leave time for permitting, installation, inspection and completion.

Questions

Nevada County Assessor's Office: 530-265-1232, assessor@nevadacountyca.gov, 950 Maidu Avenue, Nevada City. State details: BOE — Active Solar Energy System Exclusion (boe.ca.gov/proptaxes/active-solar-energy-system).
Sources: Nevada County news release "Solar Energy System Property Tax Exclusion Scheduled to Expire Jan. 1, 2027" (Sept. 9, 2026); BOE Letter to Assessors No. 2026/034 (boe.ca.gov/proptaxes/pdf/lta26034.pdf) (both checked 2026-09-28). Lead from the Nevada County News newsletter (9/10). Time-limited: update after Jan. 1, 2027.