By Wendy Osher
A renewable energy tax credit reform bill that cuts the cap for solar installations, advanced in the state House.
The House Committee on Energy & Environmental Protection adopted HB497, as a way to address tax credits in an effort to maintain economic expansion and further promote renewable energy in a “fiscally equitable” way.
The tax credit for photovoltaic systems would be incrementally phased down from 30% of the actual cost to 15% over the next 5 years. At that point, the Department of Business, Economic Development & Tourism would provide a cost-benefit analysis of the incentive and help determine its future.
Also under the bill, the tax credit cap for solar hot water installations at a single family dwelling would increase to $2500 per household and $500 per unit for multi-family residential properties. Small wind projects that are 1 Megawatt or less would be unaffected.
Committee members say revisions keep the economy growing and continue to expand access to renewable energy in a “fiscally responsible” manner.
The measure will now advance to the Committee on Commerce and Consumer Affairs.