Amendment ID: S3143-11

Amendment 11

Study on Mitigation of Federal Solar Tax Credit Elimination

Ms. Friedman moves that the proposed new text be amended by adding the following section:-

SECTION XX. Not later than six months after the effective date of this section, the department of energy resources, in consultation with the department of revenue, shall issue a report with findings and recommendations on the effects of the elimination of federal solar tax credits on the Massachusetts solar market and actions to mitigate those effects, including, but not limited to: (i) eliminating or increasing the cap on the Massachusetts renewable energy tax credit, as defined in subsection (d) of Section 6 of chapter 62 of the General Laws; provided, such report shall include a projection of the expected budget necessary for implementation of cap amounts ranging from $5,000 up to and including elimination of the cap, based on prior year historical trends; (ii) allowing the tax credit for the purchase and interconnection of energy storage systems, as defined in section 1 of chapter 164, in addition to residential renewable energy systems; and (iii) providing direct payment of the tax credit for residential renewable energy or energy storage systems installed: (A) on affordable housing, as defined in section 38D of chapter 121B; (B) for an environmental justice population, as defined in section 62 of chapter 30, where the annual median household income is not more than 65 per cent of the statewide annual median household income; or (C) for owners or tenants from a low or moderate income household, as defined in section 38D of chapter 121B. In developing recommendations, the department shall consider the impact of these actions, including eliminating or increasing the cap on the tax credit, on: (i) increasing energy affordability and reducing the energy burden of low or moderate income households; (ii) the return on investment from lowering grid costs and improving grid reliability; (iii) preserving and growing the Massachusetts workforce; (iv) contributing to the commonwealth’s decarbonization goals; and (v) mitigating negative impacts associated with the expiration or reduction of federal solar tax incentives. Said report shall be filed with the secretary of energy and environmental affairs, the clerks of the senate and house of representatives, the chairs of the senate and house committees on ways and means and the chairs of the joint committee on telecommunications, utilities and energy.