This bill amends the Tax Reform Code of 1971 by adding a new exclusion from sales and use tax for solar energy systems. Specifically, it introduces a clause that states the tax shall not be imposed on the retail sale or use of a solar energy system or its components, provided they comply with applicable national and industry standards for equipment, installation, and performance. The Department of Revenue is tasked with promulgating regulations to define the specific standards that must be met for these solar energy systems to qualify for the tax exclusion.

The bill defines a "solar energy system" as the equipment and necessary hardware used for collecting, transferring, converting, storing, or utilizing solar energy for various applications, including water heating and space heating. This legislative change aims to promote the use of renewable energy sources by reducing the financial burden associated with purchasing solar energy systems. The act is set to take effect 60 days after its passage.

Statutes/Laws affected:
Printer's No. 457 (Mar 21, 2025): P.L.6, No.2
Printer's No. 0457: P.L.6, No.2