Relating to the solar energy system tax credit available against the individual and corporate income tax, the franchise tax, the moneys and credits tax, and including effective date and retroactive applicability provisions

The bill creates a residential solar energy system tax credit equal to percent of the gross cost of the system, up to $5,000. The bill creates a separate commercial solar energy system tax credit not to exceed percent of the gross cost of the system, up to $20,000. The tax credit is available against the individual and corporate income taxes, the franchise tax, and the moneys and credits tax. The bill defines “residential solar energy system” to mean a solar energy project on residential property or multiresidential property. The bill defines “commercial solar energy system” to mean a solar energy system on a property that is not residential or multiresidential. Any tax credit approved under the bill is not refundable but the excess for the tax year may be credited to the tax liability for the following years or until depleted, whichever is earlier. A taxpayer eligible to claim a credit under the bill is not eligible to claim a renewable energy tax credit under Code chapter 476C. The bill provides that a taxpayer may claim more than one tax credit, but may claim only one credit per separate and distinct solar energy system installation. The bill permanently increases the maximum cumulative value of tax credits that may be claimed during the year from $4 million to $10 million. The bill provides that the wait list in existence prior to January 1, 2021, shall remain in effect, and an applicant from that wait list shall be given priority on any new wait list based upon the date the application for the credit was received by the department. The division takes effect upon enactment and applies retroactively to January 1, 2021, for tax years ending on or after that date. Division II raises the cumulative value of solar energy system tax credits that may be claimed during the 2020 calendar year from $4 million to $10 million. The division takes effect upon enactment and applies retroactively to tax years beginning on or after January 1, 2020, but before January 1, 2021.