HB190 Alabama 2013 Session

Summary

Primary Sponsor

Greg Wren

Republican

Session

Regular Session 2013

Title

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

Summary

HB190 would create a nonrefundable Alabama income tax credit to encourage installing energy‑efficient equipment in homes and commercial buildings, with specific caps and eligible items.

What This Bill Does

It provides a 30% tax credit of the actual installed cost for listed energy efficiency equipment, with caps of $500 for primary residences and $1,000 for existing commercial properties. The credits apply to installations in Alabama between December 31, 2008 and January 1, 2016. Installations must be by a certified installer, and the credit is nonrefundable (it can reduce tax owed but not exceed it). The calculation uses an 'Installed Cost' definition that includes purchase and on-site labor, excluding discounts, rebates, sales tax, and similar reductions.

Who It Affects

• Individuals who own and live in a primary residence in Alabama could claim credits for installing eligible equipment, up to $500 per taxpayer.
• Owners or users of existing commercial properties in Alabama (businesses) could claim credits for eligible energy‑efficient installations, up to $1,000 per taxpayer.

Key Provisions

• Creates a nonrefundable Alabama income tax credit for installation of energy efficiency equipment in residences or commercial property.
• Credit is 30% of actual installed cost, with a $500 cap for primary residences.
• Credit is 30% of actual installed cost, with a $1,000 cap for existing commercial properties.
• Eligible items include active solar space heating, passive solar space heating, solar water heating, and 'qualified energy property' such as electric heat pumps, geothermal heat pumps, furnaces/heaters, and central air conditioners.
• Other eligible upgrades include energy efficient lighting, insulation upgrades (with specified R-values), energy efficient windows and storm doors, programmable thermostats, and demand response technology that reduces standby power.
• Installed Cost includes purchase cost and on-site labor, excluding discounts, rebates, sales tax, installation credits, referral allowances, or similar reductions.
• Installations must be performed by a certified installer (e.g., NABCEP for solar systems or manufacturer-certified installers for SRCC-certified systems).
• Separate credits apply for residential and commercial properties; the per-taxpayer limits apply to the total credits claimed.
• The Act repeals conflicting laws and becomes effective on the first day of the third month after passage and governor’s signature.

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