Tax regulation mechanisms I (Reduced real estate tax)
Updated: 17.01.2019
Author: Oskar Vågerö
Owners of power stations or, under certain conditions, owners of land on which a power plant is located shall pay an annual real estate tax depending on the value of the power plant (§§ 1, 3 par. 1 d) Act No. 1984:1052). This real estate tax does not differ for renewable and fossil energy sources, except for wind energy, which is subject to a reduced tax payment, and hydro-electricity, which is subject to a higher tax rate (§ 3 par. 1 d), e) and f) Act No. 1984:1052).
Eligible technologies
Tax privileges are granted to wind power only; hydro-electricity is subject to an increased tax rate (§ 3 par. 1 e) and f) Act No. 1984:1052).
| Wind energy | Eligible (§ 3 par. 1 f) Act No. 1984/1052). |
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Amount
Plots on which a power plant is located are subject to a real estate tax of
- 0.5 % of the value of the plant if the electricity is generated from renewable or fossil energy sources (§ 3 par. 1 d) Act No. 1984:1052).
- 0.2 % of the value of the plant if the electricity is generated from wind energy (§ 3 par. 1 f) Act No. 1984/1052).
- 1.6 % of the value of a hydro-electric power station (§ 3 par. 1 e) Act No. 1984:1052).
Addressees
Every person subject to real estate tax shall be entitled, if he/she owns a piece of land on which a wind power plant is located (§§ 2, 3 par. 1 f) Act No. 1984/1052).
Distribution of costs
| State | As the state levies the real estate tax, it bears the costs arising from the tax privileges (§ 8 Act No. 1984:1052). |
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Sweden
