Tax IncentivesResidential CustomersResidential Renewable Energy Tax Credit (Personal)Incentive Type:Personal Tax Credit State:Rhode Island Eligible Renewable/Other Technologies:Solar Water Heat, Solar Space Heat, Photovoltaics, Wind, Geothermal Heat Pumps Applicable Sectors:Residential Amount:25% of costs Maximum Incentive:Based on maximum system cost of $15,000 for PV, active solar space heating and wind; Based on $7,000 maximum system cost for solar hot water and geothermal Carryover Provisions:Credit may not be carried over to subsequent years Eligible System Size: PV:minimum module size of 24 square feet Solar hot water:minimum collector area of 60 square feet Active solar heating:minimum collector area of 125 square feet Wind:minimum capacity of 250 watts at 28 mph Geothermal:minimum coefficient of performance of 3.4 or minimum efficiency ratio of 16 Project Review/Certification:Solar and geothermal installations must be approved by city or town inspector Web Site:www.energy.ri.gov/programs/renewable.php Authority 1:R.I.G.L. § 44-57-1, et seq. Summary:Rhode Island offers a personal tax credit for photovoltaic systems (on-grid and off-grid), solar hot-water systems, active solar-heating systems, wind-energy systems and geothermal-energy systems. The tax credit is equal to 25% of the system cost and applies only to residential installations. The credit is available to the resident or business that pays for the system. Photovoltaic (PV) systems must have a minimum module size of 24 square feet, and must either be connected to the grid or to a battery-storage system. PV systems up to $15,000 are eligible for the full 25% credit. (A resident or business that pays for a PV system that exceeds $15,000 in cost will receive a credit based on a $15,000 system cost.) Solar hot-water systems must have a minimum collector area of 60 square feet and must include a storage tank that holds at least 80 gallons. Solar hot-water systems up to $7,000 are eligible for the full 25% credit. (A resident or business that pays for a solar hot-water system that exceeds $7,000 in cost will receive a credit based on a $7,000 system cost.) Active solar-heating systems must have a minimum collector area of 125 square feet, and must include a system for storing and/or distributing heat to the living area of a house. Active solar-heating systems up to $15,000 are eligible for the full 25% credit. (A resident or business that pays for an active solar-heating systems that exceeds $15,000 in cost will receive a credit based on a $15,000 system cost.) Wind-energy systems must have a rotor diameter of at least 44 inches and a minimum factory-rated output of at least 250 watts (W) at 28 miles per hour. Wind-energy systems up to $15,000 are eligible for the full 25% credit. (A resident or business that pays for a wind-energy systems that exceeds $15,000 in cost will receive a credit based on a $15,000 system cost.) Geothermal systems must have either a minimum coefficient of performance of 3.4, or an efficiency ratio of 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. In addition, all geothermal systems must meet the following standards:
Geothermal systems up to $7,000 are eligible for the full 25% credit. (A resident or business that pays for a geothermal system that exceeds $7,000 in cost will receive a credit based on a $7,000 system cost.) The following systems are not eligible for the credit: passive solar space-heating systems, passive solar hot-water systems, sunspaces, solar greenhouses, PV and wind systems on boats or recreational vehicles, solar collectors for pools, existing renewable-energy systems, used renewable-energy equipment, and repairs and replacements of existing renewable-energy systems. To apply for the tax credit, taxpayers must first obtain a system approval from the Rhode Island Office of Energy Resources (RI OER), which is to be attached to the income tax filing. The RI OER website provides details on the criteria and application for system approval. Although the statute contains a provision for RI OER to certify contractors in lieu of requiring system certification, contractor certification procedures are not in place at this time. Contact:Charles Hawkins Local Option - Property Tax Exemption for Renewable Energy SystemsIncentive Type:Property Tax Exemption State:Rhode Island Eligible Renewable/Other Technologies:Solar Water Heat, Solar Space Heat, Photovoltaics, Wind, Biomass, Small Hydroelectric Applicable Sectors:Commercial, Industrial, Residential, Agricultural Amount:Varies (local option) Authority 1:R.I.G.L § 44-3-21 Date Enacted:1980 Summary:Rhode Island law allows cities and towns to exempt renewable-energy systems from property taxation (via ordinance). The term “renewable energy system” is not defined in the applicable statute (R.I. Gen. Laws § 44-3-21). Note that a separate statute (R.I. Gen. Laws § 44-57-4) specifies that for purposes of local municipal property tax assessment, certain residential solar-energy systems may not be assessed at more than the value of a conventional heating system, a conventional hot-water system or energy production capacity that otherwise could be necessary to install in a building. Qualifying technologies include photovoltaic (PV) systems, solar water-heating systems and active solar space-heating systems. Contact:Charles Hawkins Residential Solar Property Tax ExemptionLast DSIRE Review:10/05/2009 Incentive Type:Property Tax Exemption State:Rhode Island Eligible Renewable/Other Technologies:Solar Water Heat, Solar Space Heat, Photovoltaics Applicable Sectors:Residential Amount:Assessed at no more than conventional energy systems Authority 1:R.I. Gen. Laws § 44-57-4 (a)(6) Summary:Rhode Island law provides that for purposes of local municipal property tax assessment, certain residential solar-energy systems may not be assessed at more than the value of a conventional heating system, a conventional water-heating system or energy production capacity that otherwise could be necessary to install in a building. Qualifying technologies include photovoltaic (PV) systems, solar hot-water systems and active solar space-heating systems. Renewable Energy Sales Tax ExemptionLast DSIRE Review:05/20/2009 Incentive Type:Sales Tax Exemption State:Rhode Island Eligible Renewable/Other Technologies:Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Photovoltaics, Wind, Geothermal Heat Pumps, Solar Pool Heating Applicable Sectors:Commercial, Residential, General Public/Consumer Amount:100% exemption Maximum Incentive:None Authority 1:R.I.G.L § 44-18-30 Date Effective:7/15/2005 Summary:Certain renewable energy systems and equipment sold in Rhode Island are exempt from the state's sales and use tax. Eligible products include solar electric systems, inverters for solar electric systems, solar thermal systems, manufactured mounting racks and ballast pans for solar collectors, geothermal heat pumps, and wind turbines and towers. Contact:Charles Hawkins |
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