Connecticut municipalities are authorized, but not required, to offer a property tax exemption lasting up to 15 years for qualifying cogeneration systems installed on or after July 1, 2007 (see Conn. Gen. Stat. § 12-81 (63)). Municipalities that adopt an ordinance to provide such an exemption may require a payment in lieu of taxes from the property owner.
Beginning in October 2013, a municipality may also adopt an ordinance to exempt commercial or industrial Class I renewable resources*, certain hydropower facilities**, or solar thermal or geothermal renewable energy resources. Only facilities installed between January 1, 2010 and December 31, 2013