Bill Text: MS SB2914 | 2014 | Regular Session | Introduced
Bill Title: Income tax; authorize a credit for cost of installing a solar electric or solar thermal system in a residence.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2014-02-26 - Died In Committee [SB2914 Detail]
Download: Mississippi-2014-SB2914-Introduced.html
MISSISSIPPI LEGISLATURE
2014 Regular Session
To: Finance
By: Senator(s) Tindell
Senate Bill 2914
AN ACT TO AUTHORIZE AN INCOME TAX CREDIT IN AN AMOUNT EQUAL TO A PORTION THE COST OF PURCHASING AND INSTALLING A SOLAR ELECTRIC OR SOLAR THERMAL SYSTEM, OR ANY COMBINATION OF COMPONENTS THEREOF, AT A RESIDENCE LOCATED IN THIS STATE; TO PROVIDE THAT ANY TAX CREDIT CLAIMED UNDER THIS SECTION BUT NOT USED IN ANY TAXABLE YEAR SHALL CONSTITUTE AN OVERPAYMENT OF INCOME TAXES, AND THE COMMISSIONER OF REVENUE SHALL MAKE A REFUND OF THE OVERPAYMENT FROM CURRENT INCOME TAX COLLECTIONS; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. (1) As used in this section:
(a) "Cost of purchase" or "cost" means the reasonable and prudent costs for the equipment and installation of the solar electric or solar thermal systems. "Cost of purchase" or "cost" shall not include any lease management fee or any inducement to make a purchase, including, but not limited to, rebates, prizes, gift certificates, trips, additional energy items or services, except energy audits offered at no charge to the purchaser, or any other thing of value given by a seller, installer or equipment manufacturer as an inducement to buy a solar electric or solar thermal system.
(b) "Home" means a single-family detached dwelling.
(c) "Residence" means a single-family detached dwelling.
(d) "Solar electric system" means a system consisting of photovoltaic panels with the primary purpose of converting sunlight to electrical energy and all equipment and apparatus necessary to connect, store and process the electrical energy for connection to and use by an electrical load. "Solar electric system" shall include grid-connected net metering systems with or without battery backup, stand-alone alternating current (AC) systems, and stand-alone direct current (DC) systems. The eligible system components for a solar electric system include the following:
(i) For grid-connected, net metering solar electric systems, the components include photovoltaic panels, mounting systems, inverters, charge controllers, batteries, battery cases, alternating current (AC) and direct current (DC) disconnects, lightning and ground fault protection, junction boxes, remote metering display devices, and related electrical wiring materials from the photovoltaic panels to point of interconnection with the residence or electrical load.
(ii) For stand-alone solar electric AC systems, the components include photovoltaic panels, mounting systems, inverters, charge controllers, batteries, battery cases, AC and DC disconnects, lightning and ground fault protection, junction boxes, remote metering display devices, and related electrical wiring materials from the photovoltaic panels to point of interconnection with the residence or electrical load.
(iii) For stand-alone solar electric DC systems, the components include photovoltaic panels, mounting systems, charge controllers, batteries, battery cases, DC disconnects, lightning and ground fault protection, junction boxes, remote metering display devices, and related electrical wiring materials from the photovoltaic panels to point of interconnection with the residence or electrical load.
(e) "Solar thermal system" means a system consisting of a solar energy collector with the primary purpose of converting sunlight to thermal energy and all devices and apparatus necessary to transfer and store the collected thermal energy for the purposes of heating water, space heating, or space cooling. The eligible system components for a solar thermal system include solar thermal collectors, mounting systems, solar hot water storage tanks, timers, pumps, heat exchangers, drain back tanks, expansion tanks, controllers, sensors, valves, freeze protection devices, air elimination devices, photovoltaic panels for photovoltaic (PV) systems, piping, insulation and other related materials from the solar thermal collectors to the solar hot water storage tanks.
(f) "System" means a solar electric or solar thermal system, or any combination of components thereof.
(2) There shall be allowed as a credit against the tax imposed under this chapter in the amount provided for in subsection (3) of this section for a portion the cost of purchase and installation of a system at a residence located in this state. The credit is allowed if a newly constructed home with such a system already installed is purchased or if the system is purchased and installed at an existing home. In addition to eligibility requirements provided in subsection (3) of this section, to be eligible for a tax credit the system must have been sold by and installed by a person who is licensed in this state and the system shall be compliant with the requirements of the federal American Recovery and Reinvestment Act (ARRA), including, but not limited to, all major components such as the inverter, racking and solar modules. Each eligible system shall be installed on the property of the residence to which the electrical, mechanical, or thermal energy is delivered. With respect to each residence, there shall be allowed only one (1) tax credit for the purchase and installation of a system and no other tax credit is allowed for any other system installed at that residence. The provisions of this section shall in no way be construed or interpreted to allow more than one (1) tax credit authorized under this section for any residence. Once a tax credit authorized under this section is claimed by a taxpayer for a particular system, that same system shall not be eligible for any other tax credit under this section. If the residential property or system is sold, the taxpayer who claimed the tax credit shall disclose his use of the tax credit to the purchaser.
(3) (a) Except as otherwise provided in this section, the tax credit for the purchase and installation of a system at a residence, or for a system which is already installed in a newly constructed home shall be equal to fifty percent (50%) of the first Twenty-five Thousand Dollars ($25,000.00) of the cost of a system that is purchased and installed on or after January 1, 2014, and before January 1, 2024. There shall be no tax credits authorized, issued or granted as provided in this paragraph (a) for systems installed after December 31, 2024.
(b) Tax credits authorized under this section for the purchase and installation of a system at a residence by a third party through a lease with the owner of the residence shall be subject to the following provisions:
(i) The tax credit shall be equal to thirty-eight percent (38%) of the first Twenty-five Thousand Dollars ($25,000.00) of the cost of purchase.
(ii) The purchase and installation of a system shall be eligible for a tax credit if the system costs not more than Two Dollars ($2.00) per watt and provides for not more than six (6) kilowatts of energy.
(iii) There shall be no tax credits authorized, issued, or granted as provided in this paragraph (b) for systems installed after December 31, 2018.
(4) (a) The credit may be used in addition to any federal tax credits earned for the same system; however, a taxpayer shall not receive any other state tax credit, exemption, exclusion, deduction, or any other tax benefit for property for which the taxpayer has received a tax credit under this section except homestead exemption.
(b) (i) If a taxpayer purchases and installs a system at his own residence, the credit shall be claimed on the tax return for the taxable year in which the system is completed and placed in service. If a taxpayer purchases a newly constructed home with a system already installed, the credit shall be claimed on the tax return for the taxable year in which the act of sale occurred. Proof of system installation shall be provided with a claim for a tax credit.
(ii) If a third-party taxpayer purchases a system for installation at another person's residence through a lease with the owner of the residence, the credit shall be claimed on the tax return for the taxable year in which the system is completed and placed in service. Proof of system installation shall be provided with a claim for a tax credit.
(5) Any tax credit claimed under this section but not used in any taxable year shall constitute an overpayment of income taxes, and the commissioner shall make a refund of the overpayment from the current collections of the taxes imposed by this chapter. All credits and refunds, must be paid or disallowed within one (1) year of receipt by the department of any claim for refund or credit.
(6) The commissioner shall promulgate such rules and regulations in accordance with the Administrative Procedures Act as may be necessary to carry out the provisions of this section.
SECTION 2. Section 1 of this act shall be codified in Chapter 7, Title 27, Mississippi Code of 1972.
SECTION 3. This act shall take effect and be in force from and after January 1, 2014.
