2017 -- H 5123

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LC000547

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2017

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A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- SOLAR INDUSTRY

ECONOMIC INVESTMENT ACT

     Introduced By: Representatives McNamara, Azzinaro, McLaughlin, Fogarty, and Vella-
Wilkinson

     Date Introduced: January 13, 2017

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Chapter 42-64 of the General Laws entitled "Rhode Island Commerce

Corporation" is hereby amended by adding thereto the following sections:

     42-64-13.3. Solar energy -- Roof top installations.

     (a) Definitions. For the purposes of this section "small business" shall be defined as a

person, partnership, corporation, or other form of business entity independently owned and

operated, not dominant in its field and which business employs five hundred (500) or fewer

employees and has its principal place of business located in the state of Rhode Island.

     (b) Revolving fund. There is hereby established a revolving fund for the following

purpose:

     (1) Low interest loans shall be made available to any small business for the purposes of

financing the installation of solar panels in order to provide energy for the business.

     (2) Grants shall be made available to any other business for the purposes of financing the

installation of solar panels if that business employs and maintains a level of employment of five

hundred (500) or fewer employees.

     42-64-13.4. Solar energy farms.

     The state shall make available to any qualified individuals any of its facilities or land for

the purpose of creating solar energy farms. The secretary of commerce shall establish rules and

regulations to assist in the administration of this section.

     SECTION 2. Title 44 of the General Laws entitled "TAXATION" is hereby amended by

adding thereto the following chapter:

CHAPTER 31.4

SOLAR ENERGY PRODUCTION TAX CREDIT

     44-31.4-1. Solar energy production investment tax credit.

     Any company primarily engaged in solar energy research and development or

manufacturing and sale of solar energy products which pays its employees that work a minimum

of thirty (30) hours per week within the state a median annual wage equal to or greater than one

hundred and twenty-five percent (125%) of the average annual wage paid by all employers in the

state to employees that work a minimum of thirty (30) hours per week within the state, and

provides benefits typical to the solar energy production industry, shall be allowed a credit of ten

percent (10%) of the cost or other basis for federal tax purposes of tangible personal property and

other tangible property, including buildings and structural components of buildings acquired,

constructed, reconstructed, or leased with situs in Rhode Island and principally used in the

production of solar energy products after December 31, 2017.

     SECTION 3. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- SOLAR INDUSTRY

ECONOMIC INVESTMENT ACT

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     This act would establish a revolving fund to provide low interest loans and grants to

support the installation of solar energy panels. The act would also establish a tax credit for

companies involved in solar energy production.

     This act would take effect upon passage.

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