HB 1792 — An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, providing for residential solar energy incentives.

PRINTER'S NO.   2202

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 1792
                                               Session of
                                                 2025

     INTRODUCED BY GUZMAN, WEBSTER, VITALI, WAXMAN, HILL-EVANS,
        McANDREW, FREEMAN, OTTEN, PIELLI, RIVERA, GIRAL, SANCHEZ,
        CEPEDA-FREYTIZ, MALAGARI AND CIRESI, AUGUST 7, 2025

     REFERRED TO COMMITTEE ON FINANCE, AUGUST 10, 2025


                                    AN ACT
 1   Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
 2      act relating to tax reform and State taxation by codifying
 3      and enumerating certain subjects of taxation and imposing
 4      taxes thereon; providing procedures for the payment,
 5      collection, administration and enforcement thereof; providing
 6      for tax credits in certain cases; conferring powers and
 7      imposing duties upon the Department of Revenue, certain
 8      employers, fiduciaries, individuals, persons, corporations
 9      and other entities; prescribing crimes, offenses and
10      penalties," providing for residential solar energy
11      incentives.
12      The General Assembly of the Commonwealth of Pennsylvania
13   hereby enacts as follows:
14      Section 1.    The act of March 4, 1971 (P.L.6, No.2), known as
15   the Tax Reform Code of 1971, is amended by adding an article to
16   read:
17                             ARTICLE XVII-B.1
18                    RESIDENTIAL SOLAR ENERGY INCENTIVES
19   Section 1701-B.1.    Definitions.
20      The following words and phrases when used in this article
21   shall have the meanings given to them in this section unless the
22   context clearly indicates otherwise:
 1      "Department."     The Department of Revenue of the Commonwealth.
 2      "Residential solar energy system."    A photovoltaic solar
 3   electric generation system installed on the premises of a
 4   primary residence located in Pennsylvania that is intended to
 5   supply electricity for use at the residence.
 6   Section 1702-B.1.    Personal income tax credit for residential
 7                solar energy systems.
 8      (a)    Credit authorized.--A taxpayer shall be allowed a credit
 9   against the personal income tax imposed by the Commonwealth for
10   the taxable year in which a residential solar energy system is
11   placed in service.
12      (b)    Amount of credit.--The credit shall be equal to 15% of
13   the total cost incurred by the taxpayer for the purchase and
14   installation of a residential solar energy system, not to exceed
15   $2,500.
16      (c)    Carryforward.--If the credit allowed under subsection
17   (a) exceeds the taxpayer's liability for the taxable year, the
18   excess may be carried forward and applied against the taxpayer's
19   personal income tax liability for the succeeding three taxable
20   years.
21      (d)    Certification.--The department shall require a taxpayer
22   claiming the credit to provide proof of installation and system
23   compliance with applicable Federal and State standards.
24   Section 1703-B.1.    Sales and use tax exemption for solar energy
25                equipment.
26      (a)    Exemption.--The sale at retail and use of tangible
27   personal property used exclusively in the installation or
28   operation of residential solar energy systems shall be exempt
29   from the taxes imposed by this act.
30      (b)    Definitions.--As used in this section, the following

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 1   words and phrases shall have the meanings given to them in this
 2   subsection unless the context clearly indicates otherwise:
 3      "Tangible personal property."      The term includes photovoltaic
 4   panels, inverters, batteries, mounting racks, wiring and
 5   associated equipment used in residential solar energy systems.
 6   Section 1704-B.1.   Property tax assessment exclusion.
 7      (a)   Exclusion authorized.--The increase in assessed value of
 8   real property attributable to the installation of a residential
 9   solar energy system shall be excluded from the assessed value of
10   the property for purposes of real estate taxation.
11      (b)   Local option.--The exclusion under subsection (a) shall
12   apply only if the governing body of the local taxing
13   jurisdiction enacts an ordinance or resolution adopting the
14   exclusion.
15      Section 2.   This act shall take effect in 60 days.




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