On 28 June 2017, an official bill amending the Renewable Energy Sources Act and certain other acts (including the Act on Wind Farm Investments), was published on the website of the Government Centre for Legislation. One of the material amendments provided by the draft regards the rules of real property taxation of wind power plants.

Under the bill, the definition of a construction structure will return to the shape that was in force until 15 July 2016, which means that it will be clearly stated that only the building part of a wind power plant is a construction structure. Secondly, the appendix to the Building Law Act will clearly state that only the building part of a wind power plant is a building object (a construction structure is one of the building objects). Last, but not least, the Act on Wind Farm Investments will clearly indicate that a wind power plant consists of a building (a mast and foundation) and a technical part. Taking into account the planned amendments, according the justification of the bill, only the building part of a wind power plant will be subject to real property taxation.

Entry into force

The bill foresees that it will come into force on 1 September 2017 (with minor exceptions, not pertaining to provisions influencing real property taxation rules). According to the justification of the bill, the planned amendments with respect to real property taxation will influence real property taxation rules starting from 1 October 2017.

Our perspective

The planned amendments regarding real property taxation of wind power plants are positive for the whole wind energy industry, as it is clear that the aim of the bill is to lower the real property tax burden imposed on wind farm investors. On the other hand, these amendments tend to confirm that in fact the real property taxation rules that have been in force starting from 1 January 2017, have indeed been amended in a manner leading to a very significant increase of the yearly real property tax burden for wind farm investors (and not just clarifying the interpretation doubts that have arisen in the last months). As the shape of the bill is subject to further legislative process, it is advisable to closely monitor amendments to the bill.