02/13/2024

Senate Bill 2

Lead Sponsors: Senator Bill Reineke

Status: Third hearing in Senate Energy (February 25, 2025)

Description: The bill makes a number of changes to energy law, two of which involve taxation.

Beginning December 31 of the year the bill would become effective, it fully exempts any new tangible personal property (TPP) put into service that is used for electricity generation. It does not exempt any currently-used TPP. For transmission and distribution of TPP assessment rates, it leaves existing property's assessment rates unchanged and decreases the assessment rate for new (using the same definition as generation TPP) transmission and distribution TPP to 25%. The table below compares the assessment rates for public utility TPP under current law, under House Bill 15, and under SB 2 it makes no changes to assessment rates of transmission and distribution TPP. 

CCAO Position: No position (as of January 2025)