§ 44-57-5 - Computation of tax credit.
SECTION 44-57-5
§ 44-57-5 Computation of tax credit.– (a) The tax credit on each system as provided for in this chapter shall bedetermined as follows:
(1) Photovoltaic systems:
(i) Photovoltaic systems shall have a minimum module size oftwenty-four (24) square feet; and
(B) Be connected to a battery storage system or be gridinterconnected;
(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 fifteenthousand dollars ($15,000); provided, systems costing more than fifteenthousand dollars ($15,000) will receive a tax credit based on a fifteenthousand dollar ($15,000) system cost.
(2) Solar domestic hot water systems:
(i) Solar domestic hot water systems shall have a minimumcollector area of 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 seventhousand dollars ($7,000); provided, systems costing more than seven thousanddollars ($7,000) will receive a tax credit based on a seven thousand dollar($7,000) system cost.
(3) Active solar heating systems:
(i) Active solar space heating systems shall have a minimumcollector area of one hundred twenty-five (125) square feet; and
(B) A system for storing and/or distributing the heat to theliving 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 fifteenthousand dollars ($15,000); provided, systems costing more than fifteenthousand dollars ($15,000) will receive a tax credit based on a fifteenthousand dollar ($15,000) system cost.
(4) Wind energy systems:
(i) Wind energy systems must have a rotor diameter of atleast forty-four inches (44"); and
(B) Have a minimum factory rated output of at least twohundred 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 fifteenthousand dollars ($15,000); provided, systems costing more than fifteenthousand dollars ($15,000) will receive a tax credit based on a fifteenthousand dollar ($15,000) system cost.
(5) Geothermal systems:
(i) Geothermal systems must have either a coefficient ofperformance of 3.4 or greater or an efficiency ratio of sixteen (16) orgreater. All geothermal systems must have a commissioning sign-off by themanufacturer or distributor of the equipment to verify the proper installationand performance of the system. All geothermal systems must meet the followingstandards:
(A) ARI/ASHRAE/ISO-13256-1 for water to air geothermalsystems;
(B) ARI/ASHRAE/ISO-13256-2 for water to water geothermalsystems;
(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 seventhousand dollars ($7,000). Provided, systems costing more than seven thousanddollars ($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 renewableenergy system shall be the net cost of acquiring the system, and shall notinclude:
(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 onesite to another;
(10) Cost of repair or resale of a system;
(11) Any part of the purchase price that is optional, such asan extended warranty or an upgraded monitoring system; and
(12) Delivery fees.