Property Tax Treatment of Renewable Energy Installations

The Ministry of Finance prepared a fact sheet identifying the treatment of property tax from renewable energy installations. The key points for biogas include:

On-Farm Anaerobic Digestion:
Anaerobic digestion is the process by which organic materials in an enclosed vessel are broken down by micro-organisms, in the absence of oxygen. Anaerobic digestion produces biogas (consisting primarily of methane and carbon dioxide). Anaerobic digestion systems are also often referred to as “biogas systems.”

Anaerobic digestion facilities of any size that are located on a farm and are operated by the farmer will be taxed at the farm rate.

Generation by Corporate Power Producer:
Consistent with historic treatment, ground-based generation facilities that are operated by entities whose primary business is the generation, transmission or distribution of electricity (“corporate power producers”) will continue to be taxed at the industrial rate.