Renewable Energy Tax Credit News Briefs - March 2017

Thursday, March 2, 2017

New Mexico H.B. 82 was introduced Jan. 17 by Rep. Matthew McQueen. The bill would reinstate the state solar tax credit and adjust the individual and statewide ceiling. The bill would extend the tax credit that expired at the end of 2016 at 10 percent, gradually phasing down until it sunsets at the end of 2024. The individual project cap would be $9,000. The statewide cap would be $5 million, rather than the previous cap of $2 million for solar thermal systems and $3 million for photovoltaic systems. H.B. 2 is available at www.energytaxcredits.com.

***

The Iowa Department of Revenue adopted amendments to Iowa Admin. Code Section 701–42.48 and Section 701–49.5, relating to the solar energy system tax credit, effective March 8. The amended rules clarify the expiration dates for the credits available under the program, as well as the relationship between the state and federal credits. The changes add specific expiration dates for the credits for systems installed on or after Jan. 1, 2016, add citations to the federal provisions which determine the expiration dates of these credits and eliminate certain language that suggested that the Iowa credits would be automatically extended if the federal credits are extended. The phrase “or beneficiaries of an estate or trust” was added to Section 701–42.48(9) and Section 701–52.44(9). There was also an amendment stating that applications for the tax credit may be submitted through the Tax Credit Award, Claim and Transfer Administration System, which is accessible through the Department’s website.

***

On Jan. 23, New York state Sen. Kevin Parker introduced S.B. 3403, which would allow a state credit of 25 percent for qualified wind energy system equipment expenditures. The legislation calls for a cap of $7,500 per taxpayer and includes a provision under which the credit could be carried over for up to five years. The bill would be effective Jan. 1, 2018. At press time, the bill was assigned to the Senate Investigations and Government Operations Committee. S.B. 3403 is available at www.energytaxcredits.com.

***

On Jan. 18, New York state Sen. Kevin Parker introduced S. 2869, a bill that would establish a tax credit for developers using renewable energy sources in affordable housing development. The bill would amend existing law, adding Section 43, under which a taxpayer who is a developer who uses renewable sources of energy during the construction of an affordable housing facility, shall be allowed a credit against such taxes in an amount of $2,000 per qualified unit. A qualified unit is any unit occupied by one or more people whose total income is less than 100 percent of the area median income. If the amount of the credit allowed under this subsection for any taxable year should exceed the taxpayer’s tax for such year, the excess shall be treated as an overpayment of tax to be credited or refunded, however, that no interest shall be paid. This act would take effect immediately.

***

Abigail Ross Hopper began her term Jan. 17 as president and CEO of the Solar Energy Industries Association (SEIA). Before joining SEIA, Hopper worked for the Bureau of Ocean Energy Management (BOEM) within the Department of Interior, and before that, she led the Maryland Energy Administration (MEA), served as energy adviser to former Maryland Gov. Martin O’Malley and was deputy general counsel to the Maryland Public Service Commission. Tom Kimbis, who served as interim president of SEIA, was promoted to executive vice president and general counsel.

Journal Category: