Rep. Howard files bill in North Carolina House to revise solar tax exclusion

A new bill filed by State Rep. Howard in the North Carolina House seeks to modify tax rules and impose regulations on solar energy projects to address property tax exclusions and project siting, according to the North Carolina State House.

The bill, filed as HB 729 on April 2 during the 2025 regular session, was formally listed with the short title: ‘Farmland Protection Act.’

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill seeks to alter the property tax exclusion for solar energy systems, reducing the exclusion from 80% to 40% of the appraised value. Starting on July 1, 2025, this change affects taxes imposed for taxable years beginning on or after this date. Additionally, the bill prohibits the construction of new utility-scale solar projects that do not qualify under the federal Public Utility Regulatory Policies Act unless they are situated on specific types of land, such as brownfields or non-agricultural properties. Furthermore, the bill mandates existing utility-scale solar facilities to comply with decommissioning and financial assurance requirements starting November 1, 2025. New registration and decommissioning plan submissions will be required for projects constructed, rebuilt, or expanded from that date onwards, with full compliance by December 1, 2026. The rest of the bill is effective upon becoming law.

Of the three sponsors of this bill, Howard proposed the most bills (21) during the 2025 regular session.

Bills in North Carolina follow a multi-step process before becoming law. A lawmaker starts by filing a bill, which is assigned to a committee for review. The bill must be read three times in each chamber. If one chamber changes the bill after the other passes it, both must agree on the final version. Once both chambers approve the same bill, it goes to the governor, who has 10 days (or 30 if the legislature is not in session) to sign, veto, or let it become law without a signature.

You can read more about the bills and other measures here.

Howard graduated from Salem College in 2003 with a BA.

Howard, a Republican, was elected to the North Carolina State House in 2019 to represent the state’s 77th House district, replacing previous state representative Harry Warren.