Title 44
Taxation

Chapter 57
Residential Renewable Energy System Tax Credit

§ 44-57-2. Definitions.

As used in this chapter unless the context otherwise requires:

(1) “Active” means a solar renewable energy system that uses mechanical parts to collect, store, and move heat;

(2) “Applicant” means a party who files a Rhode Island tax return and applies for a residential alternative energy device tax credit under this section;

(3) “Application form” means the form that goes to the state energy office that will determine if systems meet the requirements for this tax credit;

(4) “Array” means any number of photovoltaic modules connected together electrically to provide a single electrical output;

(5) “BTU” means British thermal unit;

(6) “Consumer disclosure” means a form provided by the state energy office describing the renewable energy system. The contractor shall fill this form out and give it to the buyer of a renewable energy system. It shall show estimated energy savings of the renewable energy system, required conservation items, required maintenance, and freeze protection information and other data required by the state energy office;

(7) “Consumer information” means literature that is provided by the state energy office to contractors, solar dealers, and consumers informing them about the tax credit contained in this chapter and general consumer information;

(8) “Contractor” means a person or company who sells and/or installs renewable energy systems;

(9) “Contractors’ certification” means a contractor system certification issued by the state energy office to a contractor for a specific renewable energy system. The system shall allow the contractor to install that device for the tax credit without getting a separate system certification for each job;

(10) “Contractors’ registration board” means the board established pursuant to the provisions of chapter 65 of title 5 responsible for issuing contractors’ registration numbers and cards to contractors who are required by state law to be registered. The board is also responsible for ensuring that all registered contractors abide by the guidelines of the contractors’ registration board;

(11) “Director” means the director of the Rhode Island state energy office or the director’s representative;

(12) “Domestic water heating” means the heating of water used in a dwelling for bathing, clothes washing, dishwashing, and other related functions;

(13) “Dwelling” means real property inhabited as a principal or secondary residence and located within this state. “Dwelling” includes, but is not limited to, an individual unit within multiple unit residential housing. For purposes of this subdivision: (i) “Principal residence” means the dwelling owned by the applicant who on the date of the application has legal title to a dwelling, including the mortgagor under a duly recorded mortgage of real property, the trustor under a duly recorded deed of trust, or a purchaser under a duly recorded contract for the purchase of real property, and who inhabits the dwelling for no fewer than fourteen (14) days in the calendar year for which the credit is claimed;

(ii) “Secondary residence” means vacation property owned by the applicant;

(iii) Primary or secondary residences do not include motor homes or recreational vehicles;

(14) “Grid interconnect form” means the form required on “grid-connected photovoltaic systems” that is signed by the contractor, the master electrician who makes the grid interconnection, and the homeowner. This form shall be sent to both the participating utility company and the state energy office;

(15) “Hybrid” means a renewable energy system that uses some active and passive elements as part of the system;

(16) “Installing contractor” means the contractor or subcontractor who actually installs the renewable energy system. This may or may not be the same person or company as the solar dealer;

(17) “Inverter” means the device used to convert direct current (DC) to alternating current (AC) in a photovoltaic system;

(18) “kWh” means kilowatt-hour; one kWh = 3,413 BTUs;

(19) “Module” means the smallest non-divisible self-contained physical structure housing interconnected photovoltaic cells and providing a single DC electrical output;

(20) “MM” means million;

(21) “Net cost” means what the applicant paid to purchase the renewable energy system. Net cost includes permit and inspection fees. Net costs may include the value of federal tax credits, grants, or utility incentives. Net cost shall not include service contracts, rebates, discounts, or refunds;

(22) “Owner-built” means a renewable energy system that is assembled and installed on an owner’s property and with an owner’s labor only;

(23) “Passive” means a renewable energy system that relies on heated liquid or air rising to collect, store, and move heat without mechanical devices;

(24) “Placed in service” means the date when a renewable energy system is ready and available to produce useable energy;

(25) “Solar dealer” means the person or company who signs a contract or proposal with a customer to provide and/or install solar equipment;

(26) “Solar domestic hot water system” means a configuration of solar collectors, pump, heat exchanger, and storage tank designed to heat water. System types include forced circulation, integral collector storage, thermosyphon, and self-pumping. For the purpose of determining system yields, a configuration of components is considered a new system if changes occur in any of the following: type or size of collectors; heat exchanger type or effectiveness; size of storage tank; or system type;

(27) “State energy office” means the Rhode Island state energy office, also known as the governor’s office of energy assistance, within the department of administration;

(28) “System approval” means an approval given to renewable energy systems that meet all of the requirements of the state energy office;

(29) “System certification” means certification that a renewable energy system as described in the application meets criteria for the tax credit;

(30) “Used equipment” means any solar tank or collector which previously has been installed or any piece of equipment not under current manufacturers’ warranty;

(31) “Verification form” means a form filed with the division of taxation (upon request) by an applicant claiming eligibility for the tax credit. A contractor shall submit a copy of the form to the state energy office;

(32) “Watt” means the electrical unit of power or rate of doing work. The rate of energy transfer equivalent to one ampere of electrical current at one-volt potential;

(33) “Wh” means watt hours-power consumed by a load over a specified time. As used herein, 1,000 Wh = one kilowatt-hour (kWh);

(34) “Wind energy system” means a system that produces electricity through the use of wind generators or wind turbines. The electricity shall be used directly, as in water pumping applications, or shall be stored in batteries for household usage. Wind energy systems shall be used alone, or they shall be used as part of a hybrid system, in which their output is combined with photovoltaics and/or a fossil fuel generator;

(35) “Wind energy system dealer” means the person or company who signs a contract or proposal with a customer to provide and/or install wind energy equipment;

(36) “Wp” means Watts peak, or the rated maximum power output of a photovoltaic device measured under standard conditions of twenty-eight degrees C (28 degrees C) cell temperature and 1000 W/m2 incident sunlight; and

(37) “Geothermal system” means a system that produces and stores energy to heat buildings, cool buildings or produces hot water.