HB126 Alabama 2010 Session

Summary

Primary Sponsor

Greg Wren

Republican

Session

Regular Session 2010

Title

Energy efficient equipment, tax credits for residential or business application, Energy Efficiency Act

Summary

HB126 creates Alabama income tax credits for installing energy efficiency equipment in homes and existing commercial buildings, with caps of $500 for residences and $1,000 for commercial properties.

What This Bill Does

It would authorize nonrefundable tax credits equal to 30% of the actual installed cost for eligible equipment, subject to caps ($500 for residential, $1,000 for commercial). Eligible items include active and passive solar space heating, solar water heating, certain energy-efficient property (like heat pumps and central air), insulation upgrades, energy-efficient lighting, programmable thermostats, and demand-response technology. Installations must be done by a certified installer and the cost definition includes equipment, on-site labor, and interconnection costs, minus certain reductions. The credits apply to periods from 12/31/2008 through 12/31/2015, with separate caps for primary residences and commercial properties, and the act repeals conflicting laws and becomes effective a few months after passage.

Who It Affects

• Homeowners (or taxpayers) with a primary residence in Alabama who install eligible energy efficiency equipment and may claim up to $500 in tax credits per taxpayer.
• Owners or lessees with existing commercial property in Alabama who install eligible energy efficiency equipment and may claim up to $1,000 in tax credits per taxpayer.
• Certified installers (e.g., NABCEP-certified solar installers or other certified installers) who perform eligible installations, since installations must be carried out by a certified installer to qualify.

Key Provisions

• Creates nonrefundable Alabama income tax credits for energy efficiency equipment installed in primary residences or existing commercial property, with residential caps of $500 and commercial caps of $1,000 per taxpayer.
• Residential credits (up to $500) cover active solar space-heating, passive solar space-heating, and solar water-heating systems.
• Residential credits (up to $500) also cover 'qualified energy property' such as electric heat pumps, geothermal heat pumps, furnaces or water heaters using gas/propane/oil, and central air conditioners.
• Residential credits (up to $500) cover insulation upgrades, energy-efficient lighting, programmable thermostats, and demand-response technology.
• Commercial property credits (up to $1,000) cover energy-efficient lighting, HVAC or hot water systems, and related efficiency measures including demand-response technology.
• Credits equal 30% of the actual installed cost, defined as the purchase cost plus on-site labor and related costs, minus discounts, rebates, and other reductions.
• Installations must be performed by a certified installer and meet definitions of 'Active solar', 'Passive solar', 'Solar water-heating', and other energy efficiency standards in the bill.
• The program applies to tax years from after 12/31/2008 to before 1/1/2016 and is nonrefundable.
• The act defines 'Qualified Energy Property' as items eligible for federal tax credits under 26 U.S.C. 25C as of 12/31/2007.
• The act repeals conflicting laws and takes effect on the first day of the third month after passage and Governor approval.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Energy