Chapter 340

2009 -- H 6332

Enacted 11/13/09

A N A C T

RELATING TO TAXATION - RESIDENTIAL RENEWABLE ENERGY SYSTEM TAX CREDIT

Introduced By: Representatives Gallison, Gablinske, Malik, McNamara, and Azzinaro

Date Introduced: June 26, 2009

It is enacted by the General Assembly as follows:

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

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

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

in this chapter shall be determined as follows:

      (1) Photovoltaic systems:

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

square feet; and

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

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

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

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

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

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

      (2) Solar domestic hot water systems:

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

(60) thirty-four (34) square feet; and

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

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

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

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

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

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

      (3) Active solar heating systems:

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

hundred twenty-five (125) square feet; and

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

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

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

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

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

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

      (4) Wind energy systems:

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

(44"); and

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

twenty-eight (28) mph.

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

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

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

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

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

      (5) Geothermal systems:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

      (2) Operating and maintenance costs;

      (3) Land costs;

      (4) Legal and court costs;

      (5) Patent search fees;

      (6) Fees for variances;

      (7) Loan interest;

      (8) Service contracts;

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

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

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

upgraded monitoring system; and

      (12) Delivery fees.

SECTION 2. This act shall take effect upon passage.

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LC02934

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