1. (a) The tax credit on each system as provided for in this chapter shall be determined as follows:

   1. (1) Photovoltaic systems:

      1. (i)(A) Photovoltaic systems shall have a minimum module size of twenty-four (24) square feet; and

         1. (B) Be connected to a battery storage system or be grid interconnected;

      2. (ii) Qualifying systems shall receive a tax credit of:

         1. (A) Twenty-five percent (25%) of the cost of the system.
      3. (iii) The maximum cost of the system shall not exceed fifteen thousand dollars ($15,000); provided, systems costing more than fifteen thousand dollars ($15,000) will receive a tax credit based on a fifteen thousand dollar ($15,000) system cost.

   2. (2) Solar domestic hot water systems:

      1. (i)(A) Solar domestic hot water systems shall have a minimum collector area of thirty-four (34) square feet; and

         1. (B) A solar storage tank that is at least eighty (80) gallons.

      2. (ii) Qualifying systems shall receive a tax credit of:

         1. (A) Twenty-five percent (25%) of the cost of the system.
      3. (iii) The maximum cost of the system shall not exceed seven thousand dollars ($7,000); provided, systems costing more than seven thousand dollars ($7,000) will receive a tax credit based on a seven thousand dollar ($7,000) system cost.

   3. (3) Active solar heating systems:

      1. (i)(A) Active solar space heating systems shall have a minimum collector area of one hundred twenty-five (125) square feet; and

         1. (B) A system for storing and/or distributing the heat to the living area of the house.

      2. (ii) Qualifying systems shall receive a tax credit of:

         1. (A) Twenty-five percent (25%) of the cost of the system.
      3. (iii) The maximum cost of the system shall not exceed fifteen thousand dollars ($15,000); provided, systems costing more than fifteen thousand dollars ($15,000) will receive a tax credit based on a fifteen thousand dollar ($15,000) system cost.

   4. (4) Wind energy systems:

      1. (i)(A) Wind energy systems must have a rotor diameter of at least forty-four inches (44″); and

         1. (B) Have a minimum factory rated output of at least two hundred fifty (250) watts at twenty-eight (28) mph.

      2. (ii) Qualifying systems shall receive a tax credit of:

         1. (A) Twenty-five percent (25%) of the cost of the system.
      3. (iii) The maximum cost of the system shall not exceed fifteen thousand dollars ($15,000); provided, systems costing more than fifteen thousand dollars ($15,000) will receive a tax credit based on a fifteen thousand dollar ($15,000) system cost.

   5. (5) Geothermal systems:

      1. (i) Geothermal systems must have either a coefficient of performance of 3.4 or greater or an efficiency ratio of sixteen (16) or greater. All geothermal systems must have a commissioning sign-off by the manufacturer or distributor of the equipment to verify the proper installation and performance of the system. All geothermal systems must meet the following standards:

         1. (A) ARI/ASHRAE/ISO-13256-1 for water to air geothermal systems;
         2. (B) ARI/ASHRAE/ISO-13256-2 for water to water geothermal systems;
         3. (C) ARI/ASHRAE/ISO-13256 GWHP for groundwater heat pumps;
         4. (D) ARI/ASHRAE/ISO-13256 GLHP for closed loop heat pumps;

      2. (ii) Qualifying systems shall receive a tax credit of:

         1. (A) Twenty-five percent (25%) of the cost of the system.
      3. (iii) The maximum cost of the system shall not exceed seven thousand dollars ($7,000). Provided, systems costing more than seven thousand dollars ($7,000) will receive a tax credit based on a seven thousand dollar ($7,000) system cost.

2. (b) For purposes of the tax credit, the cost of the renewable energy system shall be the net cost of acquiring the system, and shall not include:

   1. (1) Unpaid labor including the applicant’s labor;
   2. (2) Operating and maintenance costs;
   3. (3) Land costs;
   4. (4) Legal and court costs;
   5. (5) Patent search fees;
   6. (6) Fees for variances;
   7. (7) Loan interest;
   8. (8) Service contracts;
   9. (9) Cost of moving a used renewable energy system from one site to another;
   10. (10) Cost of repair or resale of a system;
   11. (11) Any part of the purchase price that is optional, such as an extended warranty or an upgraded monitoring system; and
   12. (12) Delivery fees.

History of Section.
P.L. 2000, ch. 145, § 1; P.L. 2005, ch. 281, § 3; P.L. 2005, ch. 305, § 3; P.L. 2009, ch. 339, § 1; P.L. 2009, ch. 340, § 1.