A tax break for Tennessee’s solar industry violates the state constitution because it favors certain taxpayers, state Attorney General Robert Cooper said Friday, jeopardizing the future viability of the credit.
An exemption created in 2010 for solar and other green energy installations is prohibited by a provision of the state constitution that says the legislature cannot pass laws that let certain taxpayers out of paying property taxes, Cooper said.
The break was one of three that former Gov. Phil Bredesen pushed through the legislature in the waning days of his administration. The decision will likely rekindle efforts, led by state Comptroller Justin Wilson, to roll back the property tax exemption and replace it with a less generous tax cut.