(1) The property owner of record, or the property owner's agent, must make application to the local department office for classification as a nonfossil form of energy generation. Application will be made on a form available from the local department field office before March 1 or within 30 days of receipt of an assessment notice, which ever is later, to be considered for exemption for the current tax year.

(2) When a completed application is received by the local department field office, the department staff will adhere to the following procedures:

(a) The system will be inspected and the application considered in time to assure that any exemption will affect the property's value in the earliest possible tax year following the date of application.

(b) If the system is completed prior to March 1 of a year, the application must be filed by March 1 or within 30 days of receipt of an assessment notice, which ever is later, of that year in order for an exemption to apply for the full ten-year period.

(c) If the system is completed after March 1 of a year, the application must be filed by March 1 or within 30 days of receipt of an assessment notice, which ever is later, of the next year in order for an exemption to apply for the full ten-year period.

(d) If an applicant misses the deadlines outlined above, he will lose one year of exemption potential for every deadline date that passes. For example:

(i) If an individual completes installation of an energy system in February 2001, but does not apply for exemption until July 2001 (which is more than 30 days after receiving the assessment notice) , the individual has a total exemption potential of only nine years (the property tax exemption would be allowed for nine years - 2002 through 2010) .

(ii) If the individual completes installation of an energy system in July 2001, but does not apply for exemption until April 2003, the individual has a total exemption potential of only eight years (the property tax exemption would be allowed for eight years - 2003 through 2010) .

(e) The maximum exemption for residential property is $20,000 in market value as determined by the department and for nonresidential property, it is $100,000 in market value as determined by the department. If the value of the energy system appears to exceed those amounts, the property data and exemption application will be reviewed for consideration by the department. Any market value over $20,000 for residential property or $100,000 for nonresidential property will not receive the exemption.

(3) The following criteria must be satisfied in order for any energy system to receive exemption (all criteria must be satisfied for successful application) :

(a) The system must be able to generate energy by use of "recognized nonfossil" means.

(b) The system's components must be unique to the system and not standard components of the structure for which it provides energy.

(c) The predominant use of the system must be energy generation.