| Program Type | Tax Exemption |
|---|---|
| Technologies | Photovoltaics, Solar Hot Water Heating and Solar Space Heat |
| Amount | 100 percent exemption from sales tax |
| Required Documentation | N/A |
| Official Web Site |
http://www.rilin.state.ri.us/Statutes/TITLE44/44-18/44-18-30.HTM
http://www.rilin.state.ri.us/Statutes/TITLE44/44-3/44-3-21.HTM
http://www.rilin.state.ri.us/Statutes/TITLE44/44-57/INDEX.HTM |
Rhode Island offers a variety of tax exemptions including sales and property tax exemptions. The sales tax exemption is statewide while the property tax exemptions are determined by local municipalities.
Under the sales tax exemption solar electric systems, inverters for the systems, solar thermal systems as well as the mounting and ballast equipment for such installations are exempted from sales tax. The tax extends to other forms of renewable energy, including wind turbines and geothermal heat pumps.
Rhode Island first enacted a property tax exemption for solar energy in 1980. Under that exemption, cities or towns may opt to exempt taxation any renewable energy system located in the city or town. The language regarding the statute is vague and only comprises two sentences. To determine whether a home or property is exempted from property tax related to an installation, system owners should check with the municipality where the system is located.
The law also prohibits residential PV systems, solar hot-water systems and active solar space-heating systems from being assessed more than the value of conventional heating, hot water and energy systems for the purpose of property taxation. To qualify for the exemption, the equipment must be new.