Ga. Comp. R. & Regs. R. 187-3-1-.04 - Eligible Expenditures

The following general provisions apply to all tax credits claimed:

(a) Only the costs of materials and installation of qualified solar energy systems are allowed. Other products and/or services purchased in conjunction with a solar energy system and which are not necessary for the operation of the solar energy system are not eligible expenditures;

(b) Expenditures for architectural or engineering services, designs or plans directly related to the construction or installation of a qualified solar energy system may be included in the cost of materials and installation;

(c) Only those expenditures made by the taxpayer are eligible for the credit. Materials, installation or funds for materials and installation provided by a federal, State or local government grant must be deducted from the total solar energy system expenditure before the credit is calculated. The remainder of the expenditure provided by the taxpayer's funds is an eligible expenditure. Any federal income tax credit or deduction claimed by the taxpayer for the solar system need not be deducted from the expenditure;

(d) Expenditures claimed for materials and installation of solar energy systems must be reduced by the amount or fair market value of any rebates, bonuses, merchandise, services, or other consideration provided to the taxpayer by the seller in connection with the purchase and installation of the solar energy system;

(e) Finance charges are not an eligible expenditure;

(f) The value of a taxpayer's own labor, or that of his or her immediate family, or any labor contributed without compensation is not an eligible expenditure. The taxpayer may, however, claim the tax credit for expenditures for materials used in building his or her own solar energy system;

(g) For photovoltaic systems, the cost of the following are eligible expenditures:

1. Photovoltaic cells which collect solar radiation and convert it into electricity;

2. Supporting frames, bracing, and foundations used solely for the photovoltaic system;

3. Electric wiring to the point of connection with the conventional electric system;

4. Power conditioning and control equipment;

5. Associated safety equipment, wiring, and metering devices;

6. Electric storage devices, such as batteries;

7. Reflective devices; and

8. Other connecting parts and components necessary for the operation of the equipment;

(h) For solar water heating systems, active solar space heating systems, and industrial and agricultural process heat using solar energy, the cost of the following are eligible expenditures:

1. Collectors;

2. Frames, supporting braces and foundations for collectors;

3. Thermal storage equipment used solely for the solar energy system. Where a single tank in a solar water heating system is primarily designed for storing solar heated water and it is also capable of heating water conventionally, the expenditure for the tank is an allowable expense;

4. Connecting pipes and ducts to the point of storage or connection with the conventional or auxiliary heating or water heating system;

5. Heat exchangers and heat transfer fluids;

6. Compressors and other system components dedicated for use in refrigerant compression solar energy systems provided that the performance of the system is significantly enhanced when solar radiation is incident on the collector and that the input energy constitutes no more than one-third of the total energy output of the system operating at conditions prescribed by the Solar Rating and Certification Corporation system test (whenever that test is applicable), and provided that the compressor is controlled to prevent operation at low ambient temperature or other conditions where the efficiency of the system is significantly degraded;

7. Control devices which regulate the operation of the system;

8. Freeze protection equipment including photovoltaics;

9. Shading devices to prevent overheating of air collector systems;

10. Insulation of the solar energy system needed to prevent unwanted heat gain or loss;

11. Reflective devices used to increase the sunlight falling on the collector area; and

12. Other connecting parts and components necessary for the operation of the system;

(i) For passive solar space heating systems, the cost of the following are eligible expenditures:

1. South-facing glazing, and associated framing and structural supports;

2. Thermal mass which stores solar heat, including the additional foundations, footings and supports needed to support additional weight;

3. Moveable insulation;

4. Fans, ducts and dampers used primarily for the movement of solar heated air;

5. Control devices which regulate the operation of the system, except that for conventional doors and windows used to regulate the operation of a sunspace, only 50% of the cost of these doors and windows is an eligible expenditure;

6. Shading devices used to prevent overheating; and

7. Reflective devices used to increase the sunlight falling on the collector area;

(j) The following items are not eligible expenditures for the tax credit:

1. Swimming pools, hot tubs, spas, saunas or similar devices;

2. Heat pumps, or any other electrical or fossil fueled appliance, except storage tanks in solar water heating systems designed primarily to store solar heated water, but which are also capable of heating water by conventional means;

3. Trees, shrubbery, vines or other vegetation used to provide shading for a solar energy system;

4. Wood stoves or masonry fireplaces;

5. Walls, floors and ceilings of an underground structure, except those walls and floors which are part of a sunspace system or storage wall system, or which supply the needed amount of thermal mass storage for a direct gain system;

6. Drapes or other indoor window treatments with an R-value of less than 1.8, or which are used on glazing which is not South-facing or which are used on glazing which is not part of a passive solar space heating system;

7. Glazing materials which have a total transmissivity to perpendicular sunlight of .69 or less;

8. East, north or west-facing glazing used in a passive solar space heating system;

9. Ceiling fans, whole house fans, attic fans and power attic ventilators, unless the fan or blower is located in a sunspace and is used to vent the sunspace;

10. Toys, novelty items, calculators and watches employing photovoltaic cells;

11. Land or excavation of land;

12. Solar cookers;

13. Direct current (DC) electrical appliances used in photovoltaic applications, such as refrigerators, televisions, etc. Direct current devices such as motors or pumps used in the solar energy system or used in the distribution of energy are eligible; and

14. Maintenance and repair costs; and

15. Solar air conditioning or solar cooling systems.

Notes

Ga. Comp. R. & Regs. R. 187-3-1-.04

O.C.G.A. 48-7-29.2; Ga. L. 1984, pp. 715, 716, 717.

Original Role entitled "Eligible Expenditures" was filed on August 16, 1984; effective September 5, 1984. Amended: Filed March 11, 1981; effective March 31, 1986.