Solar Energy Equipment Tax Exemption City Of Alexandria (Page 2 of 3) in pdf

Solar Energy Equipment Tax Exemption City Of Alexandria Page 2

Program Procedures

Apply for the appropriate permits and participate in the tax exemption program by submitting the required

applications and documentation described above to the Permit Center, 4

floor of City Hall, 301 King

Street, Room 4200.

Once the equipment is installed and all required inspections are approved for conformance with the USBC,

the Department of Code Administration shall approve and certify such application to the Assessor.

The Assessor will review the application and calculate the value of the tax exemption.

The Assessor shall notify the applicant by letter of the final approval of the tax exemption, the amount of

the exemption, and the time period for which the tax exemption shall apply.

Program Example

The property owner has entered into a contract for a total of $12,000 to install solar energy panels ($8,000 in solar

energy equipment and $4,000 for installation). Code Administration has completed their inspections certified the

application to the Assessor.

The $12,000, in this example, is considered the value of the exemption and would be deducted from the assessed

value of the property every year for 5 years.

(The percentage or formula used is outlined in the Virginia Administrative Code. Many items such as solar panels

or hot water systems are at 100% of cost and installation as shown in this example. Where other items such as south

facing windows and greenhouses are based on a percentage or formula as stated in the Code.)

The tax savings is calculated as follows: $12,000 divided by 100, then multiplied by the current tax rate. The amount

of tax savings over the 5 year period may vary depending on the tax rate that is in effect for each tax year.

For questions about the application, what equipment qualifies, the permit process, or inspections, please contact the

Permit Center at 703.746.4200. For questions about the tax exemption calculation, please contact Real Estate

Assessments at 703.746.4646.

The Department of Code Administration

City Hall, Room 4200

301 King Street

Alexandria, VA 22314

703.746.4200

Hours: Monday – Friday 8 a.m. to 5 p.m.

Visit us on the Web at:

alexandriava.gov/Code

Solar Energy Equipment Tax Exemption City Of Alexandria Page 2