2023 Rhode Island General Laws › Title 44 - Taxation › Chapter 44-57 - Residential Renewable Energy System Tax Credit › Section 44-57-5. - Computation of tax credit.

§ 44-57-5. Computation of tax credit.
(a)
The tax credit on each system as provided for in this chapter shall be determined as follows:
(1)
Photovoltaic systems:
(i)(A)
Photovoltaic systems shall have a minimum module size of twenty-four (24) square feet; and
(B)
Be connected to a battery storage system or be grid interconnected;
(ii)
Qualifying systems shall receive a tax credit of:
(A)
Twenty-five percent (25%) of the cost of the system.
(iii)
The maximum cost of the system shall not exceed fifteen thousand dollars ($15,000); provided, systems costing more than fifteen thousand dollars ($15,000) will receive a tax credit based on a fifteen thousand dollar ($15,000) system cost.
(2)
Solar domestic hot water systems:
(i)(A)
Solar domestic hot water systems shall have a minimum collector area of thirty-four (34) square feet; and
(B)
A solar storage tank that is at least eighty (80) gallons.
(ii)
Qualifying systems shall receive a tax credit of:
(A)
Twenty-five percent (25%) of the cost of the system.
(iii)
The maximum cost of the system shall not exceed seven thousand dollars ($7,000); provided, systems costing more than seven thousand dollars ($7,000) will receive a tax credit based on a seven thousand dollar ($7,000) system cost.
(3)
Active solar heating systems:
(i)(A)
Active solar space heating systems shall have a minimum collector area of one hundred twenty-five (125) square feet; and
(B)
A system for storing and/or distributing the heat to the living area of the house.
(ii)
Qualifying systems shall receive a tax credit of:
(A)
Twenty-five percent (25%) of the cost of the system.
(iii)
The maximum cost of the system shall not exceed fifteen thousand dollars ($15,000); provided, systems costing more than fifteen thousand dollars ($15,000) will receive a tax credit based on a fifteen thousand dollar ($15,000) system cost.
(4)
Wind energy systems:
(i)(A)
Wind energy systems must have a rotor diameter of at least forty-four inches (44″); and
(B)
Have a minimum factory rated output of at least two hundred fifty (250) watts at twenty-eight (28) mph.
(ii)
Qualifying systems shall receive a tax credit of:
(A)
Twenty-five percent (25%) of the cost of the system.
(iii)
The maximum cost of the system shall not exceed fifteen thousand dollars ($15,000); provided, systems costing more than fifteen thousand dollars ($15,000) will receive a tax credit based on a fifteen thousand dollar ($15,000) system cost.
(5)
Geothermal systems:
(i)
Geothermal systems must have either a coefficient of performance of 3.4 or greater or an efficiency ratio of sixteen (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. All geothermal systems must meet the following standards:
(A)
ARI/ASHRAE/ISO-13256-1 for water to air geothermal systems;
(B)
ARI/ASHRAE/ISO-13256-2 for water to water geothermal systems;
(C)
ARI/ASHRAE/ISO-13256 GWHP for groundwater heat pumps;
(D)
ARI/ASHRAE/ISO-13256 GLHP for closed loop heat pumps;
(ii)
Qualifying systems shall receive a tax credit of:
(A)
Twenty-five percent (25%) of the cost of the system.
(iii)
The maximum cost of the system shall not exceed seven thousand dollars ($7,000). Provided, systems costing more than seven thousand dollars ($7,000) will receive a tax credit based on a seven thousand dollar ($7,000) system cost.
(b)
For purposes of the tax credit, the cost of the renewable energy system shall be the net cost of acquiring the system, and shall not include:
(1)
Unpaid labor including the applicant’s labor;
(2)
Operating and maintenance costs;
(3)
Land costs;
(4)
Legal and court costs;
(5)
Patent search fees;
(6)
Fees for variances;
(7)
Loan interest;
(8)
Service contracts;
(9)
Cost of moving a used renewable energy system from one site to another;
(10)
Cost of repair or resale of a system;
(11)
Any part of the purchase price that is optional, such as an extended warranty or an upgraded monitoring system; and
(12)
Delivery fees.
History of Section.
P.L. 2000, ch. 145, § 1; P.L. 2005, ch. 281, § 3; P.L. 2005, ch. 305, § 3; P.L. 2009, ch. 339, § 1; P.L. 2009, ch. 340, § 1.