Rhode Island House Bill H6107

Rhode Island 2023 Regular Session

• Introduced: 3/3/23
• Refer: 3/3/23

Caption

Residential Renewable Energy System Tax Credit

Impact

The introduction of HB 6107 is expected to bolster investments in renewable energy across Rhode Island, contributing to the state's environmental goals and shifting towards sustainable energy sources. By providing financial incentives for adopting such technologies, the bill not only encourages homeowners to reduce their reliance on traditional energy sources but may also stimulate the local economy by promoting jobs within the renewable energy sector. Moreover, the bill allows for tax credits generated to be donated to nonprofit organizations assisting low-income residents, thereby also addressing energy equity issues.

Summary

House Bill 6107, introduced in the Rhode Island General Assembly, proposes amendments to the 'Residential Renewable Energy System Tax Credit' established under state taxation laws. This bill aims to incentivize the adoption of renewable energy systems by allowing taxpayers to receive a tax credit for a portion of the installation costs of eligible systems, including photovoltaic systems, solar domestic hot water systems, active solar heating systems, and wind energy systems. The bill outlines specific criteria for each type of system to qualify and sets limits on the maximum costs eligible for the tax credits, ensuring those who invest in renewable technologies can reduce their tax burden substantially.

Contention

Despite its potential benefits, discussions surrounding HB 6107 could reveal disagreements centered on financial implications for the state budget and interpretations of equity concerning which residents will ultimately benefit from the tax credits. Critics may voice concerns about whether significant tax incentivization will disproportionately favor wealthier households more capable of affording the initial investments required for renewable energy systems. Proponents would argue that supporting job creation through environmental sustainability outweighs these concerns, while an ongoing dialogue may look to ensure that low- and moderate-income families also gain access to the myriad benefits of renewable energy without financial hardship.