BESS tax rate for energy storage equipment

Is a Bess a sales tax exclusion?

By contrast, a BESS co-located next to an active solar energy system is treated as part of that system and provided a 100 percent exclusion if the BESS is installed before the point of conveyance and the exclusion has not been taken. California law does not provide a sales tax exemption specifically for renewable energy storage systems.

Is a stand-alone energy storage a qualified person?

Notably, no NAICS code describes stand-alone energy storage, and there is no published guidance on whether a stand-alone BESS could be a qualified person. Stand-alone BESS is subject to property tax. Texas offers an incentive program referred to as chapter 312 to attract new capital investment that has benefitted renewable development.

Is Bess subject to property tax?

Stand-alone BESS is subject to property tax. Texas offers an incentive program referred to as chapter 312 to attract new capital investment that has benefitted renewable development. Chapter 312 of the Texas Tax Code allows cities, counties, and special districts to enter into tax abatement agreements with taxpayers that make qualified investments.

How will Section 301 tariffs affect Bess batteries?

The biggest impact comes from Section 301 tariffs, which add 25% to the cost of many battery components. Here’s the rundown: As of March 22, 2025, BESS manufactured in China and shipped to the U.S. faces a tariff rate that’s already a bit of a gut punch.