Georgia

In May 2008, Georgia enacted legislation establishing personal and corporate tax credits for renewable energy equipment and certain energy-efficient equipment installed and placed into service. For renewable energy property used for any purpose other than single-family residential purposes, the tax credit is equal to 35% of the cost of the system (including installation), $0.60/square foot for lighting retrofit projects, and $1.80/square foot for energy-efficient products installed during construction. The credit is subject to various ceilings depending on the type of renewable-energy system or project. The maximum credit amount is the lesser of 35% of the system cost or the maximum dollar cap specified for the technology. The following credit limits for various technologies apply:

• A maximum of $100,000 per installation for domestic solar water heating
• A maximum of $500,000 per installation for photovoltaics (PV), solar thermal electric applications, active space heating, biomass equipment and wind energy systems
• A maximum of $100,000 per installation for Energy Star-certified geothermal heat pumps
• A maximum of $100,000 for lighting retrofit projects
• A maximum of $100,000 for energy-efficient products installed during construction.

Leased systems are eligible for the credit. In the case of a leased system, the cost is considered to be eight times the net annual rental rate, which is the annual rental rate paid by the taxpayer less any annual rental rate received by the taxpayer from subrentals.  
 
Before claiming the credit, the taxpayer must submit an application to the Georgia tax commissioner for tentative approval, as the aggregate amount of tax credits taken -- both personal and corporate credits -- may not exceed $2,500,000 in a given calendar year. The property must be placed in service prior to application for the tax credit. Tax credits are granted on a first come, first served basis and may not exceed the taxpayer's liability for that taxable year. Excess credit may be carried forward for five years from the close of the taxable year in which the installment of the clean energy property occurred. If the amount of credits exceeds the taxpayer's liability in a taxable year, the excess may be taken as a credit against the taxpayer's quarterly or monthly payment.  
 
Solar hot water systems must be certified for performance by the Solar Rating Certification Corporation (SRCC), the Florida Solar Energy Center (FSEC) or a comparable entity approved by the tax authority. The equipment must meet the certification standards of SRCC OG-100 or FSEC-GO-80 for solar thermal collectors and/or SRCC OG-300 or FSEC-GP-5-80 for solar thermal residential systems.  
 
This tax credit is in effect from July 1, 2008 until December 31, 2012. For more information, review the guidelines for the tax credit issued by the Department of Revenue.