An Act To Encourage the Use of Solar Energy
Maine Legislature, Session 122, LD 1586
Committee Amendment CA_B_H616 (House)
Amends: 35-A MRSA §3211-B, 36 MRSA §2016

COMMITTEE AMENDMENT B· to 
To Encourage the Use of Solar 
H.P. 1122, 
Energy" 
L. D. 1586, Bill, "An 
Amend the bill by striking out everything after the enacting 
clause and before the summary and inserting in its place the 
following: 
. Sec. 1. 35-A MRSA §3211-B is enacted to read: 
§3211-B. 
Solar energy rebate program: fund 
1. 
Definitions. 
As 
used in this 
section, 
unless 
the 
context 
otherwise 
indicates, 
the 
following 
terms 
have 
the 
following meanings. 
A. 
"Oualified 
solar 
energy 
system" 
means 
a 
solar 
photovoltaic system or a 
solar thermal system. 
B. 
"Solar photovoltaic system" means a solar energy device 
with a peak generating capacity of 100 kilowatts or less 
used for generating electricity for use in a residence or 
place of business. 
C. 
"Solar thermal system" means a configuration of solar 
collectors and a pump, heat exchanger and storage tank or 
fans designed to heat water or air. 
Solar thermal system 
types 
include 
forced 
circulation, 
integral 
collector 
storage, thermosyphon and self-pumping systems. 
Page l-LR2277(3) 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT ~, to H.P. 1122, L.D. 1586 
2. 
Solar energy rebate program. 
To the extent that funds 
are available in the fund established in subsection 3, an owner 
or tenant of residential or commercial property located in the 
State is entitled to a rebate for a qualified solar energy system 
that is. installed in accordance with this subsection after July 
1, 2005 that will be connected to the electrical grid. 
A. 
A solar photovoltaic system qualifies for a rebate of $3 
per watt on the first 2,000 watts of installed capacity and 
$1 per watt for the next 1,000 watts if: 
(1) 
For 
a 
system installed after July 1, 
2005 but 
before January 1, 2007, the system is installed by a 
master electrician who has completed a training course 
to prepare for certification by a North American board 
of 
certified 
energy 
practitioners 
or 
by 
a 
master 
electrician working in conjunction with either a person 
who has been certified by a North American board of 
certified energy practitioners or 
a 
person who 
has 
completed 
a 
training 
course 
to 
prepare 
for 
certification by a North American board of certified 
energy practitioners; or 
(2) For a system installed on or after January 1, 2007, 
the system is installed by a master electrician who has 
been certified by a North American board of certified 
energy practitioners or by a master electrician working 
in conjunction with a person who has been certified by 
a 
North 
American 
board 
of 
certified 
energy 
practitioners. 
B. 
A solar thermal system designed to heat water qualifies 
for a rebate of 25C!-o of the cost of the system, including 
installation, or $500, whichever is less, if the system is 
installed by a licensed plumber who has been certified by 
the commission to install such systems or by a licensed 
plumber working in conjunction with a person who has been 
certified by the commission to install such systems. 
C. 
A solar thermal system designed to heat air qualifies 
for a rebate of 25% of the cost of the system, including 
installation, or $500, whichever is less. 
In the case of a newly constructed residence, the rebate must be 
available to the original owner or occupant. 
3. 
Fund. 
The 
solar 
energy 
rebate 
program 
fund 
is 
established to be used solely for the purposes of this section. 
The 
fund 
receives 
funds 
transferred 
from 
the 
General 
Fund 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT ]" to H.P. 1122, L.D. 1586 
pursuant to this subsection. 
Any interest on funds in the fund 
must be credited to the fund. 
Funds not spent in any fiscal year 
remain in the fund to be used for the purposes of this section. 
Notwithstanding any other provision of law, the State Controller 
shall transfer $500,000 each fiscal year beginning in fiscal year 
2005-06 from the General Fund undedicated revenue to the fund for 
the purposes specified in this section, 
4. Rules. 
The commission shall adopt rules necessary to 
implement the provisions of this section, including procedures 
and standargs for demonstrating qualification for a rebate under 
this section. 
Rules adopted under this subsection are routine 
technical rules as gefined in Title 5, chapter 375, subchapter 
2-A. 
5. 
Report. 
The commission shall report by December 1st of 
each year to the joint standing committee of the Legislature 
having 
jurisdiction 
over 
utilities 
and 
energy 
matters 
a 
description of actions taken by the commission pursuant to this 
section during the prior 12 months. 
Sec. 2. 36 MRSA §2016 is enacted to read: 
§20l6. 
Solar energy equipment; reimbursement of sales tax 
1. Reimbursement allowed. 
A reimbursement is allowed as 
provided in this section for tax paid pursuant to this Part with 
respect to the purchase of a qualified solar energy system that 
has been installed in this State. 
The reimbursement is allowed 
for purchases of qualified solar systems that occur on or after 
July 1, 2005. 
As used in this section, the term "qualified solar 
energy system" has the same meaning as in Title 35-A, section 
3211-8, subsection 1, paragraph A. 
2. Claim for reimbursement. 
A claim for reimbursement under 
this section must be filed by the purchaser with the assessor 
within 3 years from the date on which the qualified solar energy 
system was purchased. The -reimbursement claim must be submitted 
on a 
form prescribed by the assessor. 
The reimbursement claim 
must be 
accompanied by an affidavit from the seller of the 
qualified solar energy system certifying that the system for 
which the tax was paid is a qualified solar energy system or a 
portion of 
such 
a 
system, 
as 
well 
as 
any 
such 
additional 
information as the assessor may require. All records pertaining to 
such certification and to the sale transaction must be retained 
by the purchaser for at least 6 years. 
3. Audit. The assessor has the authority to audit any claim 
filed under this section. 
If the assessor determines that the 
COMMITTEE AMENDMENT 
'" 
COMMITTEE AMENDMENT B" to H.P. 1122, L.D. 1586 
amount of the claimed reimbursement is incorrect, the assessor 
shall redetermine the claim and notify the claimant in writing of 
the redetermination. 
If the claimant has received reimbursement 
of an amount that the assessor concludes should not have been 
reimbursed, the assessor may issue an assessment for that amount 
within 3 years from the date the reimbursement claim was filed or 
at any time if a fraudulent reimbursement claim was filed. 
The 
claimant may seek reconsideration, pursuant to section 151, of 
the redetermination or assessment. 
4. 
Payment of claims. 
The assessor shall determine the 
benefit for each claimant under this section and certify the 
amount to the State Controller to be transferred to a 
solar 
energy reimbursement reserve account established, maintained and 
administered 
by 
the 
State 
Controller 
from 
General 
Fund 
undedicated revenue within the sales tax category. 
The assessor 
shall certify the 
amount 
to 
the State Controller 
for 
each 
approved applicant that qualifies for reimbursement under this 
section within 90 
days after receipt of a properly completed 
claim. 
Interest is not allowed on any payment made to a claimant 
pursuant to this section. 
Sec. 3. 36 MRS A §5219.Y is enacted to read: 
§52l9-Y. 
Income tax credit for solar thermal system 
1. Credit amount. 
A person who purchases and installs a 
qualified solar thermal system in this State is allowed a credit 
against the taxes imposed by this Part equal to 25% of the cost 
of the system, including installation costs, or $500, whichever 
is less. 
The credit is allowed in the taxable year in which the 
qualified solar thermal system is first placed in service. 
The 
credit is allowed in tax years beginning on or after January 1, 
2005. 
For purposes of this section, "gualified solar thermal 
system" has the same meaning as provided by Title 35-A, section 
3211-5, 
subsection 1, 
paragraph C. 
The person claiming the 
credit shall provide an affidavit from the seller of the system 
that the system is eligible for the credit allowed by this 
section in a manner required by the assessor at the time the 
return claiming the credit is filed. 
2. Limitation: carry-over. 
If the credit allowed by this 
section exceeds the taxpayer's total tax due, the amount of the 
credit not used may be carried over as a credit against the 
taxpayer's tax liability for any of the next succeeding 3 taxable 
years. 
The credit allowed, including carry-overs, may not reduce 
the tax otherwise due under this Part to less than zero. 
Sec. 4. 
es tabli shing 
Standards. 
procedures 
The 
and 
Public 
Utilities 
standards 
for 
Commission 
in 
demonstrating 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT ~, to H.P. 1122, L.D. 1586 
qualification for 
a 
rebate under the Maine 
Revised Statutes, 
Title 35-A, section 32ll-B shall allow a person to demonstrate 
the date a system was installed by the date of a net metering 
arrangement with a 
transmission and distribution utility or a 
dated bill of sale for the system. 
Sec. 
5. 
Appropriations 
and 
allocations. 
appropriations and allocations are made. 
ADMINISTRATIVE AND FINANCIAL SERVICES, 
DEPARTMENT OF 
Maine Revenue Services 
0002 
The 
following 
Initiative: 
Provides funds for the computer programming costs 
associated with the income tax credit for the installation of a 
solar thermal system. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
ADMINISTRATIVE AND FINANCIAL SERVICES, 
DEPAR'l'MENT OF 
DEPARTMENT 'l"O'.rALS 
GENERAL FUND 
DEPAR'l'MENT TOTAL -
ALL FUHDS 
PUBLIC UTILITIES COMMITSSION 
Solar Energy Rebate Program Fund 
(new) 
2005-06 
$30,000 
$30,000 
2005-06 
$30,000 
$30,000 
2006-07 
$0 
$0 
2006-07 
$0 
$0 
Initiative: 
Allocates funds for the Solar Energy Rebate Program 
Fund. 
The 
source of 
funds is an annual 
transfer 
from 
the 
undedicated revenue of the General Fund. 
OTHER SPECIAL REVENUE FUHDS 
2005-06 
2006-07 
All Other 
$500,000 
$500,000 
OTHER SPECIAL REVENUE FUNDS TOTAL 
$500,000 
$500,000 
PUBLIC UTILITIES COMMITSSION 
DEPARTMENT TOTALS 
2005-06 
2006-07 
OTHER SPECIAL REVENUE FUNDS 
$500,000 
$500,000 
DEPAR'l'MENT 'l"O'.rAL -
ALL FUHDS 
$500,000 
$500,000 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT ,~ to H.P. 1122, L.D. 1586 
SECTION TOTALS 
GENERAL FUND 
OTHER SPECIAL REVENUE FUNDS 
SECTION TOTAL -
ALL FUNDS 
2005-06 
$30,000 
$500,000 
$530,000 
2006-07 
$0 
$500,000 
$500,000' 
SUMMARY 
This amendment, which is the minority report of the Joint 
Standing Committee on Utilities and Energy, replaces the bill. 
This amendment preserves the basic provisions of the bill but 
makes the following changes. 
1. 
program 
provides 
It provides that the funding for the solar energy rebate 
is 
provided 
from 
the 
General 
Fund. 
The 
amendment 
$500,000 each year for this purpose. 
2. 
It provides that solar installations made after July 1, 
2005 qualify for the solar energy rebate program. 
3. 
It modifies the installation requirements for the solar 
energy rebate program to provide that, between July 1, 2005 and 
January 1, 2007, a solar photovoltaic system must be installed by 
a master electrician who 
has 
completed a 
training course to 
prepare for certification by a North American board of certified 
energy practitioners 
or 
by 
a 
master 
electrician working 
in 
conjunction either with a person who has been certified by a 
North American board of certified energy practitioners or 
a 
person 
who 
has 
completed 
a 
training 
course 
to 
prepare 
for 
certification by 
a 
North American board of certified energy 
practitioners. 
On or after January 1, 2007, the system must be 
installed by a master electrician who has been certified by a 
North American board of certified energy practitioners or by a 
master electrician working in conjunction with a person who has 
been certified by a 
North American board of certified energy 
practitioners. 
4. 
It modifies the installation requirement for the solar 
energy rebate program to provide that a solar thermal system 
designed to heat water may be installed by a licensed plumber who 
has been certified by the commission to install such systems or 
by a licensed plumber working in conjunction with a person who 
has been certified by the commission to install such systems. 
5. 
It provides for the 
and 
procedures 
demonstrating 
commission to establish standards 
qualification 
for 
the 
rebate 
C·OMMITTEE AMENDMENT 
COMMITTEE AMENDMENT .6 .. to H.P. 1122, L.D. 1586 
program and provides that the commission shall allow a person to 
demonstrate the date a system was installed by the date of a net 
metering arrangement with a transmission and distribution utility 
or a dated bill of sale for the system. 
6. 
It modifies the sales tax exemption for installations of 
qualified 
solar 
energy 
equipment 
to 
provide 
for 
a 
tax 
reimbursement 
rather 
than 
an 
exemption, 
to 
allow 
systems 
installed on or after July 1, 2005 to qualify and to provide for 
administrative procedures to implement the reimbursement program. 
l2 
7. 
It modifies 
the 
income 
tax 
credit to provide 
for 
administrative procedures to implement the credit and to clarify 
that the credit is allowed in tax years beginning on or after 
January 1, 2005. 
FISCAL ~OTE REQURED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: OS/25/05 ;:b:?.czC 
LD 1586 
LR2277(03) 
An Act To Encourage the Use of Solar Energy 
Fiscal Note for Bill as Amended by Committee Amendment 8 
Committee: Utilities and Energy 
Net Cost (Savings) 
General Fund 
Appropriations/Allocations 
General Fund 
Other Special Revenue Funds 
Revenne 
General Fund 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Minority Report 
Fiscal Note 
2005-06 
$708,412 
$30,000 .~ 
$500,000 
($678,412) 
$490,412 
2006-07 
$694,735 
$0 
$500,000 
($694,735) 
$489,535 
Projections 
2007-08 
$733,436 
$0 
$500,000 
($733,436) 
$487,196 
Projections 
2008-09 
$780,123 
$, 
$500,000 
($780,123) 
$484,635 
The income tax credit and sales tax reimbursement contained in this bill are expected to reduce General Fund revenue 
by $178,412 in fiscal year 2005-06 and $194,735 in fiscal year 2006-07. Other Special Revenue for Municipal 
Revenue Sharing will be reduced by small amounts. This bill also includes a General Fund appropriation of $30,000 
for Maine Revenue Services for the related computer programming cos~s. 
This bill authorizes annual transfers in the amount of $500,000 from the General Fund to support the Solar Rebate 
Program Fund and provides Other Special Revenue allocations to accept the amounts transferred. 
The additional costs associated with administering solar energy programs can be absorbed by the Public Utilities 
Commission uitilizing existing budgeted resources. 
LR2277(3) - Fiscal Note - Page 1 of 1