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MAINE: Utilities Tax: Special Assessment Will Fund Solar Energy Rebate Program

Posted on: Sunday, 7 August 2005, 03:01 CDT

To encourage the use of solar energy in the state, Maine has established a solar energy rebate program funded by a special public utilities assessment on transmission and distribution companies that is not to exceed 0.005 cents per kilowatt-hour. Accordingly, an owner or tenant of residential or commercial property located in Maine is entitled to a rebate for a qualified solar energy system that is appropriately installed after July 1,2005, and that is connected to the electrical grid. Note that participation in this rebate program is limited to a Maine resident and that the program terminates December 31, 2008.

A "qualified solar energy system" is either a solar photovoltaic system, which is a solar energy device with a peak generating capacity of 100 kilowatts or less that is used for generating electricity for use in a residence or place of business, or a solar thermal system, which is a configuration of solar collectors and a pump, heat exchanger, and storage tank or fans designed to heat water or air. In each fiscal year, 25% of the funds collected will be allotted to solar photovoltaic system rebates and 75% of the funds will be allotted to solar thermal system rebates.

A solar photovoltaic system qualifies for a rebate of $3 per watt on the first 2,000 watts of installed capacity and $1 per watt for the next 1,000 watts if:

* for a system installed after July 1, 2005, but before 2007, the system is installed by a master electrician who has completed a training course to prepare for professional certification or by a master electrician working in conjunction with either a person who has been professionally certified or a person who has completed a training course to prepare for professional certification; or,

* for a system installed after 2006, the system is installed by a master electrician who has been professionally certified or by a master electrician working in conjunction with a person who has been professionally certified.

A solar thermal system designed to heat water or air qualifies for a rebate of 25% of the cost of the system, including installation, or $1,250, whichever is less, if the system is installed by a licensed plumber who has been properly certified to install such a system or by a licensed plumber working in conjunction with a person who has been properly certified to install such a system. In the case of a newly constructed residence, the rebate must be available to the original owner or occupant. (L.D 1586, Ch. 459 (H.P. 1122a), Laws 2005, applicable to tax years beginning after July 1, 2005.)

Copyright CCH Incorporated: Federal and State Tax Jul 26, 2005

Source: State Tax Review

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