Senate Bill 3014

AN ACT TO AUTHORIZE AN INCOME AND/OR FRANCHISE TAX CREDIT EQUAL TO A CERTAIN AMOUNT OF THE COST OF PURCHASING AND INSTALLING SOLAR ELECTRIC ENERGY SYSTEMS; TO PROVIDE THAT, IF THE SYSTEM IS COMPOSED OF PRODUCTS MADE IN MISSISSIPPI THEN THERE IS AN ADDITIONAL INCOME AND/OR FRANCHISE TAX CREDIT; TO PROVIDE THAT THE CREDIT SHALL APPLY TO ALL SOLAR ELECTRIC ENERGY SYSTEMS INSTALLED ON OR AFTER JULY 1, 2010; TO PROVIDE THE MANNER IN WHICH THE CREDIT MAY BE CLAIMED; TO PROVIDE THAT IF THE AMOUNT OF CREDIT CLAIMED BY A TAXPAYER EXCEEDS THE AMOUNT OF INCOME AND/OR FRANCHISE TAX IMPOSED UPON THE TAXPAYER FOR THE TAXABLE YEAR, THEN THE TAXPAYER SHALL RECEIVE A REFUND FROM THE DEPARTMENT OF REVENUE FOR THE AMOUNT OF SUCH EXCESS; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. (1) As used in this section, the following terms shall have the meanings ascribed below:

(a) "Solar electric energy system" means an energy system with the primary purpose of collecting or absorbing sunlight for conversion into electricity or an energy system with the primary purpose of collecting or absorbing solar energy for conversion into electrical energy and includes the following:

(i) Grid-connected, solar electric systems: battery backup, photovoltaic panels, mounting systems, inverters, charge controllers, batteries, battery cases, alternating current (AC) and direct current (DC) disconnects, lightning and ground fault protection, junction boxes, remote metering display devices and related electrical wiring materials from the photovoltaic panels to point of interconnection with the residence or electrical load.

(ii) Stand-alone solar electric AC systems:

photovoltaic panels, mounting systems, inverters, charge controllers, batteries, battery cases, AC and DC disconnects, lightning and ground fault protection, junction boxes, remote metering display devices and related electrical wiring materials from the photovoltaic panels to point of interconnection with the residence or electrical load.

(iii) Stand-alone solar electric DC systems: photovoltaic panels, mounting systems, charge controllers, batteries, battery cases, DC disconnects, lightning and ground fault protection, junction boxes, remote metering display devices and related electrical wiring materials from the photovoltaic panels to point of interconnection with the residence or electrical load.

(b) "Made in Mississippi" means a product that is manufactured in the State of Mississippi.

(2) There shall be allowed as a credit in the amount provided for in subsection (4) of this section against any state income and/or franchise tax imposed, for the cost of purchase and installation of a solar electric energy system incurred by a taxpayer for the installation of such a system in a residential or commercial property, including a residential rental apartment project, that is located in this state. The credit may be claimed in cases where the taxpayer purchases a newly constructed residential or commercial building in which a solar electric energy system has been installed or such a system is purchased and installed in an existing building or where the system is installed in a newly constructed or existing residential rental apartment project.

(3) Only one (1) tax credit authorized by this section shall be available for any eligible system. If a tax credit authorized under this section is claimed by a taxpayer for a particular system, then no other tax credit under this section shall be allowed for that same system. If the property or system is sold, then the taxpayer who claimed the tax credit shall disclose his use of the tax credit to the purchaser, and the purchaser shall not be eligible to claim the tax credit.

(4) The amount of the credit authorized by this section shall be equal to fifty percent (50%) of the first Fifty Thousand Dollars ($50,000.00) paid or incurred by a taxpayer for the cost of each solar energy system, including installation costs, that is purchased and installed on or after January 1, 2010. If the solar energy system is composed of products made in Mississippi, then there is an additional credit in the amount of five percent (5%) of the first Fifty Thousand Dollars ($50,000.00) paid or incurred by a taxpayer for the cost of the system, including installation costs, that is purchased and installed on or after January 1, 2010. The credit may be used in addition to any federal tax credits earned for the same system. A taxpayer shall not receive any other state tax credit, exemption, exclusion, deduction, or any other tax benefit for property for which the taxpayer has received a tax credit under this section.

(5) If a taxpayer purchases and installs a solar electric energy system in a residential or commercial property, including a residential rental apartment project, that is located in this state, then the tax credit may be claimed on any return during the taxable year in which the system is completed and placed in service. If a taxpayer purchases a newly constructed building for residential or commercial use, including a residential rental apartment project, in which a solar electric energy system has been installed, then the tax credit shall be claimed during the taxable year in which the sale takes place.

(6) For a taxpayer other than the owner of the residential or commercial property, including a residential rental apartment project, to claim a tax credit for a solar electric energy system, the taxpayer shall provide the Department of Revenue with a copy of the contract in which the owner of the property has clearly and unambiguously stated that he will not claim the tax credit. Absent such a contract, the owner of the property is the only taxpayer eligible to claim the credit.

(7) Notwithstanding any other provision of law to the contrary, if the amount of the credit claimed by a taxpayer exceeds the amount of income and/or franchise tax imposed upon the taxpayer for the taxable year reduced by the sum of all other credits allowable to the taxpayer under state income and franchise tax laws, except credit for tax payments made by or on behalf of the taxpayer, then the taxpayer shall receive a refund from the Department of Revenue for the amount of such excess. All credits and refunds, including interest earned thereon, must be paid or disallowed by the Department of Revenue within ninety (90) days of receipt of any such claim for refund or credit.

(8) In order to claim a tax credit for a solar electric energy system, the components for each system must be purchased and installed at the same time as a system. Credits may be claimed in accordance with the following:

(a) Any entity taxed as a corporation for income and franchise tax purposes shall claim any credit authorized under this section on any taxes due the state on its corporate franchise or income tax return.

(b) Any individual, estate, or trust shall claim any credit authorized under this section on its income tax return.

(c) Any entity not taxed as a corporation shall claim any credit authorized under this section on the returns of the partners or members as follows:

(i) Corporate partners or members shall claim their share of the credit on their corporation income tax or franchise tax returns.

(ii) Individual partners or members shall claim their share of the credit on their individual income tax or franchise tax returns.

(iii) Partners or members that are estates or trusts shall claim their share of the credit on their fiduciary income tax returns.

SECTION 2. Nothing in this act shall affect or defeat any claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under the income tax laws before the date on which this act becomes effective, whether such claims, assessments, appeals, suits or actions have been begun before the date on which this act becomes effective or are begun thereafter; and the provisions of the income tax laws are expressly continued in full force, effect and operation for the purpose of the assessment, collection and enrollment of liens for any taxes due or accrued and the execution of any warrant under such laws before the date on which this act becomes effective, and for the imposition of any penalties, forfeitures or claims for failure to comply with such laws.

SECTION 3. This act shall take effect and be in force from and after July 1, 2012.