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Minutes for HB2083 - Committee on Taxation
Short Title
Providing a property tax exemption for new energy storage systems and excluding new energy storage systems from the commercial and industrial machinery and equipment exemption.
Minutes Content for Thu, Jan 30, 2025
Chairperson Smith opened the hearing for HB2083.
Adam Siebers, Office of Revisor of Statutes, provided an overview for HB2083 that provides a property tax exemption for new energy storage systems and excludes new energy storage systems from the commercial and industrial machinery and equipment exemption (Attachment 2). Mr. Siebers stood for questions from Committee members.
Kathleen Smith, Kansas Department of Revenue, stated there are currently no energy storage systems in operation in Kansas; therefore, the Department was not able to provide an impact.
Proponents:
Kimberly Svaty, testified as an proponent for HB2083 on behalf of Advanced Power Alliance, stating it is an association of developers, operators, engineers, financiers and purchasers involved in the advanced energy economy. More than $20 billion has been invested in the state of Kansas and created more the 20,000 direct and indirect jobs. Energy storage is an emerging industry and the tax treatment status in Kansas is unclear. Ms. Svaty noted the Kansas Department of Revenue suggested the energy storage systems might qualify for the Commercial Industrial Machinery and Equipment (CIME), property tax exemption and be eligible for a lifetime exemption. The CIME exemption is not approved until the project is completed and approved by the Board of Tax Appeals (BOTA). The tax statutes lack clarity regarding the treatment of energy storage systems (Attachment 3). Ms. Svaty stood for questions from the Committee.
Polly Shaw, Chief External Relations Officer of Plus Power, testified as a proponent for HB2083. Plus Power is an American headquartered American owner operator of utility scale battery storage facilities. She requested support for HB2083 to provide regulatory certainty to the emerging industry. The standalone battery storage facilities are an extension of the electrical infrastructure to help modernize the transmission grid making it more efficient and reliable. Ms. Shaw noted there is no certainty until the project is built and reviewed by the Board of Tax Appeals for the approval of the Commercial Industrial Machinery and Equipment (CIME) property tax exemption. The battery energy storage can help the state's economic growth goals and Kansas power reliability. (Attachment 4) Ms. Shaw stood for questions from Committee members.
Jay Hall, Kansas Association of Counties submitted written only as a proponent for HB2083. (Attachment 5)
Opponents:
Dave Trabert, Kansas Policy Institute, submitted written only testimony as an opponent for HB2083. (Attachment 6)
Chairperson Smith closed the hearing for HB2083.
