Real property tax: valuation: active solar energy system.

The bill was reformatted from a traditional legislative document layout (with page numbers, line numbers, and column formatting) into a web-based presentation with navigation menus, quick search, and version tracking links. No statutory text was altered.

The amendment to Section 17015.5 of the Revenue and Taxation Code (defining 'part-year resident' for personal income tax purposes) was removed entirely. The bill now only adds Section 73.3 to the Revenue and Taxation Code.

A new provision caps the useful life and economic life of an active solar energy system at the lesser of: 25 years, the remaining site lease term (including extension options) from when the system is placed in service, or the applicable useful life in Table P of the California Assessors' Association's 2026 Position Paper 26-001 (with a minimum 15 percent factor for the cost method).

The definition of 'external obsolescence' was expanded to include not only US duties and tariffs but also 'the amounts of any federal tax credits and similar incentives that have been generated by the applicable solar energy system or portion thereof.' This means federal incentive value is treated as a reduction in taxable value.

The exclusion from 'tangible property' was broadened to explicitly cover 'any income or value arising from or attributable to those assets and rights,' not just the intangible assets themselves. The list of excluded intangibles was also restructured, with renewable energy credits remaining in the list.

The fiscal note changed from 'Fiscal committee: no' to 'Fiscal committee: yes' and 'State-mandated local program: no' to 'yes,' indicating the Assembly's fiscal analysis now recognizes a state-mandated local program cost, though the bill still provides that no appropriation is made for lost property tax revenues.

Adds entirely new Section 73.3 to the Revenue and Taxation Code establishing uniform valuation rules for active solar energy systems for property tax purposes, expanding the bill from a minor income tax definitional change to a major property tax statute.

Defines 'replacement cost new' as the original cost of the solar system minus government subsidies (tax credits and similar), multiplied by a depreciation percent good factor and an inflation cost index factor derived from utility-scale solar data publications (EIA Annual Energy Outlook or Lawrence Berkeley National Laboratory reports), adjusted to exclude US import customs and duties.

Specifies that 'tangible property' for valuation purposes excludes intangible assets including federal and state tax credits, cash grants, contracts for energy/resource adequacy/ancillary services, renewable energy credits, and environmental commodities such as carbon credits and emissions credits.

Establishes that the preferred valuation method is replacement cost new less depreciation and all other forms of obsolescence, with 'external obsolescence' explicitly including amounts attributable to US duties and tariffs.

Requires that any active solar energy system or portion thereof excluded from the definition of 'newly constructed' under Section 73 be treated as a separate appraisal unit from other property not so excluded, per Section 51 of the Revenue and Taxation Code.

Provides that no appropriation is made and the state shall not reimburse local agencies for property tax revenues lost due to this act, overriding the general reimbursement requirement in Section 2229 of the Revenue and Taxation Code.

Bill now takes effect immediately as a tax levy under Article IV of the California Constitution, rather than following the standard January 1 effective date.

Now requires a two-thirds vote in each house of the Legislature due to Section 3 of Article XIIIA (taxpayer protection clause), since the change results in taxpayers paying a higher tax.