2012 -- S 2549

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LC01950

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

RELATING TO TAXATION - RESIDENTIAL RENEWABLE ENERGY SYSTEM TAX

CREDIT

     Introduced By: Senators Sosnowski, Miller, DiPalma, Walaska, and E O`Neill

     Date Introduced: February 28, 2012

     Referred To: Senate Finance

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 44-57-5 of the General Laws in Chapter 44-57 entitled "Residential

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Renewable Energy System Tax Credit" is hereby amended to read as follows:

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     44-57-5. Computation of tax credit. -- (a) The tax credit on each system as provided for

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in this chapter shall be determined as follows:

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      (1) Photovoltaic systems:

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      (i) (A) Photovoltaic systems shall have a minimum module size of twenty-four (24)

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square feet; and

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      (B) Be connected to a battery storage system or be grid interconnected;

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      (ii) Qualifying systems shall receive a tax credit of:

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      (A) Twenty-five percent (25%) of the cost of the system.

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      (iii) The maximum cost of the system shall not exceed fifteen thousand dollars

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($15,000); provided, systems costing more than fifteen thousand dollars ($15,000) will receive a

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tax credit based on a fifteen thousand dollar ($15,000) system cost.

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      (2) Solar domestic hot water systems:

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      (i) (A) Solar domestic hot water systems shall have a minimum collector area of thirty-

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four (34) square feet; and

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      (B) A solar storage tank that is at least eighty (80) gallons.

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      (ii) Qualifying systems shall receive a tax credit of:

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      (A) Twenty-five percent (25%) of the cost of the system.

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      (iii) The maximum cost of the system shall not exceed seven thousand dollars ($7,000);

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provided, systems costing more than seven thousand dollars ($7,000) will receive a tax credit

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based on a seven thousand dollar ($7,000) system cost.

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      (3) Active solar heating systems:

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      (i) (A) Active solar space heating systems shall have a minimum collector area of one

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hundred twenty-five (125) square feet; and

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      (B) A system for storing and/or distributing the heat to the living area of the house.

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      (ii) Qualifying systems shall receive a tax credit of:

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      (A) Twenty-five percent (25%) of the cost of the system.

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      (iii) The maximum cost of the system shall not exceed fifteen thousand dollars

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($15,000); provided, systems costing more than fifteen thousand dollars ($15,000) will receive a

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tax credit based on a fifteen thousand dollar ($15,000) system cost.

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      (4) Wind energy systems:

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      (i) (A) Wind energy systems must have a rotor diameter of at least forty-four inches

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(44"); and

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      (B) Have a minimum factory rated output of at least two hundred fifty (250) watts at

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twenty-eight (28) mph.

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      (ii) Qualifying systems shall receive a tax credit of:

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      (A) Twenty-five percent (25%) of the cost of the system.

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      (iii) The maximum cost of the system shall not exceed fifteen thousand dollars

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($15,000); provided, systems costing more than fifteen thousand dollars ($15,000) will receive a

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tax credit based on a fifteen thousand dollar ($15,000) system cost.

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      (5) Geothermal systems:

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      (i) Geothermal systems must have either a coefficient of performance of 3.4 or greater or

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an efficiency ratio of sixteen (16) or greater. All geothermal systems must have a commissioning

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sign-off by the manufacturer or distributor of the equipment to verify the proper installation and

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performance of the system. All geothermal systems must meet the following standards:

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      (A) ARI/ASHRAE/ISO-13256-1 for water to air geothermal systems;

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      (B) ARI/ASHRAE/ISO-13256-2 for water to water geothermal systems;

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      (C) ARI/ASHRAE/ISO-13256 GWHP for groundwater heat pumps;

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      (D) ARI/ASHRAE/ISO-13256 GLHP for closed loop heat pumps;

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      (ii) Qualifying systems shall receive a tax credit of:

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      (A) Twenty-five percent (25%) of the cost of the system.

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      (iii) The maximum cost of the system shall not exceed seven thousand dollars ($7,000).

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Provided, systems costing more than seven thousand dollars ($7,000) will receive a tax credit

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based on a seven thousand dollar ($7,000) system cost.

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      (b) For purposes of the tax credit, the cost of the renewable energy system shall be the

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net cost of acquiring the system, and shall not include:

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      (1) Unpaid labor including the applicant's labor;

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      (2) Operating and maintenance costs;

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      (3) Land costs;

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      (4) Legal and court costs;

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      (5) Patent search fees;

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      (6) Fees for variances;

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      (7) Loan interest;

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      (8) Service contracts;

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      (9) Cost of moving a used renewable energy system from one site to another;

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      (10) Cost of repair or resale of a system;

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      (11) Any part of the purchase price that is optional, such as an extended warranty or an

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upgraded monitoring system; and

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      (12) Delivery fees.

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     (c) If the qualifying renewable energy system was manufactured in Rhode Island, the tax

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credit shall be fifty percent (50%) of the cost of the system, subject to the same maximum credits

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provided for in this section.

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     SECTION 2. This act shall take effect upon passage.

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LC01950

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO TAXATION - RESIDENTIAL RENEWABLE ENERGY SYSTEM TAX

CREDIT

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     This act would amend the statute relating to tax credits for qualifying renewable energy

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systems to provide an additional tax credit if the system was manufactured in Rhode Island.

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     This act would take effect upon passage.

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LC01950

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