New hampshire republicans target 50-year-old solar tax break, sparking local control debate

A legislative battle is brewing in New Hampshire over a proposal to eliminate a decades-old property tax exemption for solar panel owners, pitting tax fairness arguments against local autonomy and clean energy incentives.

Republican Representative Len Turcotte has introduced legislation to repeal a 1975 law that allows municipalities to exempt solar system owners from paying property taxes on the added value their panels bring to their homes. The exemption has been adopted by 153 of the state’s roughly 230 municipalities—about two-thirds—making it one of New Hampshire’s few residential solar incentives. Turcotte argues the policy unfairly forces non-solar homeowners to subsidize their solar-equipped neighbors through higher property taxes.

However, opponents are pushing back hard against the proposal. At a recent legislative hearing, about a dozen speakers—including clean energy advocates, business leaders, and solar owners—uniformly opposed the bill. They argue the actual financial impact is negligible while the broader benefits are significant. In Hudson, for example, the exemption applies to just $2.2 million in property value out of a $5.1 billion tax base—creating what one assessor called an “almost incalculable” effect on tax rates.

The debate has taken on deeper significance in a state whose “Live Free or Die” motto reflects strong traditions of local control. Critics say repealing the exemption would override decisions made by voters in individual communities, undermining New Hampshire’s commitment to municipal self-governance. With Republicans controlling both legislative chambers and the governor’s office, the bill’s fate may ultimately depend on whether lawmakers prioritize state-level tax policy over local decision-making authority.