Amendment #28 to H5151

Modernizing State Solar Tax Credit

Mr. Rogers of Cambridge moves to amend the bill by adding the following section:

"SECTION  XXXX.

Section 6 of said chapter 62 of the General Laws, is hereby amended by striking out subsection (d) in its entirety, replacing it with the following subsection:

Section 6(d) any owner or tenant of residential property located in the commonwealth who is not a dependent of another taxpayer, shall be entitled to a credit equal to fifteen per cent of the net expenditure for a renewable energy source property or seven thousand five hundred dollars, whichever is lesser; provided, however, that in the case of a newly constructed residence the credit shall be available to the original owner/occupant. Any owner or tenant of residential property located in the commonwealth entitled to this credit for any taxable year under this subsection, the amount of which exceeds their total tax due for the then current taxable year, may carry over the excess amount, as reduced from year to year, and apply it to their tax liability for any one or more of the next succeeding three taxable years; provided, however, that in no taxable year may the amount of the credit allowed exceed the total tax due of the owner or tenant for the relevant taxable year. For taxable years beginning on or after January first, two thousand twenty-seven, if the amount of the credit allowable under this subsection shall exceed the owner or tenant's tax liability for such year, and the owner or tenant meets the definition of low to moderate income as defined in section 38d of chapter 121b in the general laws, or the residential property meets the definition of affordable housing as defined in section 38d of chapter 121b in the general laws, or the residential property is located in an environmental justice population where the annual median household income is not more than 65 per cent of the statewide annual median household income, as defined in section 62 of chapter 30 of the general laws, the excess shall be treated as an overpayment of tax to be credited or refunded in that tax year, provided, however, that no interest shall be paid thereon. Joint owners of a residential property shall share any credit available to the property under this subsection in the same proportion as their ownership interest.

As used in this section the following words shall have the following meanings:

(I) "Renewable energy source property'', property, including materials and component parts thereof, separately purchased and assembled by such residential property owner;

(A) which, when installed in connection with a dwelling, transmits, stores or uses:

(1) solar energy or any other form of renewable energy which the commissioner specified by regulations, for the purpose of heating or cooling such dwelling or providing hot water for use within such dwelling, or produces electricity for such purposes, or

(2) wind energy for nonbusiness residential purposes;

(B) the original use of which begins with the owner or tenant of a residential property located in the commonwealth;

(C) which can reasonably be expected to remain in operation for at least five years; and

(D) which meets the performance and quality standards, if any, which:

(i) have been prescribed by the commissioner by regulation; and

(ii) are in effect at the time of the acquisition of the property.

(II) "Net expenditure'', the total of the purchase price for any renewable energy source property and/or energy storage system property, plus installation cost less any credits received pursuant to the Internal Revenue Code and less grants or rebates received from the United States Department of Housing and Urban Development."

Additional co-sponsor(s) added to Amendment #28 to H5151

Modernizing State Solar Tax Credit