Assemblyman Scott Gray (R-Watertown) today expressed deep disappointment in Gov. Kathy Hochul’s decision to sign Assembly Bill A.8332 into law, warning the measure will significantly reduce tax revenues for school districts, towns, villages, counties and fire districts that host large-scale solar and wind projects.

The new law amends Real Property Tax Law §575-b to lock in a single, state-mandated “discounted cash flow” model to value utility-scale solar and wind systems. It allows developers to treat major revenue streams, such as federal investment, production tax credits and renewable energy credits, as “intangible assets,” thereby excluding them from the project’s taxable value.

“Host communities are being asked to give up productive land, accept major visual and infrastructure impacts and then accept discounted tax values on top of that,” said Gray. “This legislation tilts the playing field toward large developers and away from local taxpayers, schoolchildren, businesses and first responders. It is bad legislation for communities that host these projects.”

Under the new statute, local assessors, trained professionals who understand local markets, fiscal realities and site-specific conditions will be ignored and effectively replaced with a rigid, state-designed formula. That model, by excluding key revenue streams and expanding allowable expenses, lowers the assessed value of extensive solar and wind facilities and, in turn, reduces the tax base and the ceiling on future Payments in Lieu of Taxes (PILOT) agreements.

“In light of this law, local boards will need to be especially aggressive in host community agreement negotiations,” Gray added. “Where the state model shrinks the tax base and limits PILOT revenues, local leaders should work to capture every possible community benefit—whether through direct host community payments, infrastructure investments, emergency services support or other commitments spelled out in a strong HCA. If Albany is going to constrain the assessment process, local governments must use every available tool at the negotiating table.”

Local government associations and tax experts have warned that the mandated model already undervalues solar and wind projects, in some cases taxing systems at only a fraction of their true worth. Because the assessed value typically caps PILOT payments, any further under-assessment directly translates into smaller host-community benefits and a larger burden on existing taxpayers.

Gray noted the North Country is already experiencing rapid growth in utility-scale renewable proposals, often covering thousands of acres of once-productive farmland or developable property for 30–40 years. Yet, many communities in the region have seen limited long-term local job creation, higher long-term utility costs because of interconnection requirements and now face a state-imposed valuation formula that further erodes the fiscal upside of hosting these facilities.

“North Country communities are doing more than their share to help meet state energy goals and demonstrating willingness to host new advanced nuclear energy because of the job creation opportunities,” Gray said. “The least Albany can do is ensure that when land is taken out of agricultural or development use for decades, the tax system reflects the true value of these projects. Instead, this law devalues them on paper and leaves rural taxpayers holding the bag.”

Gray emphasized continued support for an “all-of-the-above” energy strategy, including responsible renewable development, but stressed that long-term climate goals cannot come at the expense of local fiscal stability.

“A cleaner energy future and a fairer tax system are not mutually exclusive,” Gray said. “In the next legislative session, there must be a serious effort to amend this statute, whether by allowing municipalities to opt out, restoring excluded revenue streams to the model or otherwise ensuring host communities receive fair value for hosting major infrastructure. In the meantime, local officials are encouraged to maximize host community agreements to their fullest extent so every possible dollar and commitment is captured for the benefit of schools, local governments, fire departments and taxpayers across the North Country.”

For more information, contact:

Office of Assemblyman Scott Gray
116th Assembly District – St. Lawrence & Jefferson Counties
(315) 786-0284 (District)
(518) 455-5545 (Albany)