Solar energy and silicon product manufacturers

From the 2024 DOR Tax Exemption Study

82.04.294 - Solar energy and silicon product manufacturers Description Businesses manufacturing or wholesaling solar energy systems or producing silicon components for these systems receive a preferential B&O tax rate of 0.275% until June 30, 2032. If no preferential rate existed, the rate would be 0.484%. A person who utilizes this preferential tax rate must file annual reports with the department detailing employment, wages paid, and employee benefits. Purpose To support the solar electric industry. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.456 $0.463 $0.470 $0.477 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this B&O tax preferential rate would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.424 $0.470 $0.477 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate for solar energy and silicon product manufacturing activities mirrors the U.S. electric renewable energy generation outlook reflected in Statista forecast. Data Sourc