H. B. 4274
(By Delegates Manypenny, Klempa, Martin, Brown,
Ferro, Ross, Barker, Hartman,
Hatfield and Argento)
[Introduced February 2, 2010; referred to the
Committee on Energy, Industry and Labor, Economic Development and
Small Business then Finance.]
A BILL to amend and reenact §11-13Z-3 of the Code of West Virginia,
1931, as amended; and to amend said code by adding thereto a
new article, designated §11-13AA-1, §11-13AA-2, §11-13AA-3 and
§11-13AA-4, all relating to creating a tax credit for
residential renewable energy systems; defining terms;
providing amount of the credit; providing limitations and
requiring the Tax Commissioner to promulgate rules for
claiming and applying the tax credit; and changing the
duration of the residential solar energy tax credit.
Be it enacted by the Legislature of West Virginia:
That §11-13Z-3 of the Code of West Virginia, 1931, as amended,
be amended and reenacted; and that said code be amended by adding
thereto a new article, designated §11-13AA-1, §11-13AA-2,
§11-13AA-3 and §11-13AA-4, all to read as follows:
ARTICLE 13Z. RESIDENTIAL SOLAR ENERGY TAX CREDIT.
§11-13Z-3. Carryover credit allowed; Tax Commissioner to promulgate rules.
If the amount of the credit exceeds the taxpayer's liability
for the taxable year, the amount which exceeds the tax liability
may be carried over and applied as a credit against the tax
liability of the taxpayer pursuant to the provisions of article
twenty-one of this chapter to each of the next taxable years unless
sooner used.
The State Tax Commissioner shall promulgate legislative rules
pursuant to the provisions of chapter twenty-nine-a of this code
regarding the applicability, method of claiming of the credit,
recapture of the credit and documentation necessary to claim the
credit allowed by this article. No taxpayer
shall may take a
credit pursuant to this article for a solar energy system installed
after
July 1, 2013 June 30, 2010.
ARTICLE 13AA. RESIDENTIAL RENEWABLE ENERGY SYSTEMS TAX CREDIT.
§11-13AA-1. Definitions.
As used in this article, the following terms have the meaning
ascribed to them in this section:
(1) "Active solar system" means a system of equipment capable
of collecting and converting incident solar radiation into thermal,
mechanical, or electrical energy, and transferring these forms of
energy by a separate apparatus to storage or to the point of use;
and includes water heating, space heating or cooling, and
electrical or mechanical energy generation.
(2) "Biomass energy" means any of the following that is used as the primary source of energy to produce fuel or electricity:
(A) Material from a plant or tree; or
(B) Other organic matter that is available on a renewable
basis, including:
(i) Slash and brush from forests and woodlands;
(ii) Animal waste;
(iii) Methane produced at landfills or as a byproduct of the
treatment of wastewater residuals;
(iv) Aquatic plants; and
(v) Agricultural products.
"Biomass energy" does not include black liquor, treated woods
or biomass from municipal solid waste other than methane produced
at landfills or as a byproduct of the treatment of wastewater
residuals.
(3) "Biomass system" means any system of apparatus and
equipment for use in converting material into biomass energy, as
defined in subdivision(2) of this subsection, and transporting that
energy by separate apparatus to the point of use or storage.
(4) "Direct-use geothermal system" means a system of apparatus
and equipment enabling the direct use of geothermal energy,
generally between 100 and 300 degrees Fahrenheit, that is contained
in the earth to meet energy needs, including heating a building, an
industrial process and aquaculture.
(5) "Geothermal energy" means energy contained in heat that
continuously flows outward from the earth that is used as a sole source of energy to produce electricity.
(6) "Geothermal heat-pump system" means a system of apparatus
and equipment enabling the use of thermal properties contained in
the earth at temperatures well below 100 degrees Fahrenheit to help
meet heating and cooling needs of a structure.
(7) "Hydroenergy system" means a system of apparatus and
equipment capable of intercepting and converting kinetic water
energy into electrical or mechanical energy and transferring this
form of energy by separate apparatus to the point of use or storage.
(8) "Passive solar system" means a direct thermal system that
utilizes the structure of a building and its operable components to
provide for collection, storage, and distribution of heating or
cooling during the appropriate times of the year by utilizing the
climate resources available at the site. The term includes those
portions and components of a building that are expressly designed
and required for the collection, storage, and distribution of solar
energy.
(9) "Renewable energy resource" includes solar energy, biomass
energy, geothermal energy, hydroenergy and wind energy.
(10) "Residential renewable energy system" means any active
solar system, passive solar system, biomass system, direct-use
geothermal system, geothermal heat-pump system, wind system or
hydroenergy system used to supply energy to or for any residential
unit.
(11) "Wind system" means a system of apparatus and equipment
capable of intercepting and converting wind energy into mechanical
or electrical energy and transferring these forms of energy by a
separate apparatus to the point of use or storage.
§11-13AA-2. Amount of credit.
Any taxpayer who installs or causes to be installed a
residential renewable energy system on property located in this
state and owned by the taxpayer and used as a residence after July
1, 2010, is allowed a credit against the taxes imposed in article
twenty-one of this chapter in an amount equal to twenty-five percent
of the cost to purchase and install the system up to a maximum
amount of $3,000.
§11-13AA-3. Restrictions.
In order to receive the credit for a residential renewable
energy system on residential property, the system must use a
renewable energy resource to:
(1) Generate electricity;
(2) Heat or cool a structure; or
(3) Provide hot water for use in the structure or to provide
solar process heat. The system used to provide hot water must
derive at least fifty percent of its energy to heat or cool from a
renewable energy resource. This subsection does not apply to a
swimming pool, hot tub or any other energy storage medium that has
a function other than storage.
§11-13AA-4. Credit to be apportioned over five-year period;
carryover credit allowed; Tax Commissioner to
promulgate rules.
(a) The credit against tax provided in this article may be
taken by a taxpayer claiming the credit only in five equal
increments over a five-consecutive tax-year period, so that in any
tax year in which a taxpayer is entitled to the credit, only one
fifth of the total credit allowed for a residential renewable energy
system under section two may be taken.
(b) The State Tax Commissioner shall promulgate legislative
rules pursuant to the provisions of chapter twenty-nine-a of this
code regarding the applicability, method of claiming the credit,
recapture of the credit and documentation necessary to claim the
credit allowed by this article.
(c) No taxpayer may take a credit pursuant to this article for
a residential renewable energy system installed after June 30, 2014.
NOTE: The purpose of this bill is to create a tax credit for
residential renewable energy systems. This bill also changes the
duration of the residential solar energy tax credit, as the credit
created by this bill applies to several types of residential
renewable energy systems, including solar systems.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.