Residential Photovoltaic Solar Systems Tax Credit Available

Tax Administration Jamaica (TAJ) is advising individual taxpayers, including self-employed or employed persons, that they can benefit from the Residential Solar Photovoltaic Systems Credit (RSPSC). The tax credit which is one of the revenue measures announced by the former Hon. Minister of Finance and Public Service for the fiscal year 2023/2024, has been introduced to reduce Jamaica’s high dependence on imported fuel, through the Government’s encouragement of the use of renewable energy to generate electricity.

Under Section 25F of the amended Income Tax Act, taxpayers who have acquired or installed a solar photovoltaic system at their primary place of residence (excluding Unoccupied, Occupied by tenant to the exclusion of the owner, Occupied by any other person in the absence of the owner) since January 1, 2023, will be able to benefit from a 30% tax credit on the cost of delivery, purchase or installation of the photovoltaic system, or $1.2M, whichever maybe less. Please note that this refund does not include finance charges incurred in funding the project.

Additional eligibility criteria includes:

• The electrical work carried out for the installation of the system must be certified by a licensed electrical inspector.
• The home owner is in possession of a licence from the Ministry of Science, Energy, Telecommunication and Transport
• All Property Tax payments for the residential property where the Residential Solar PV System was installed must be current.
• In respect of the taxpayer, the credit is being allowed for the purchase and installation of the Solar PV System for the first time
• In respect of the dwelling house at which the Solar PV System is installed, the credit is being allowed for the first time.

TAJ has been providing support to taxpayers, particularly Income Tax filers through a series of webinars to provide details on how they may be able to benefit from the initiative. Please see link to the last webinar recording below:   https://www.youtube.com/watch?v=k1Y93dR8878

For further information persons may contact the TAJ Customer Care Centre at 888-Tax-Help (888-829-4357), or visit the Authority’s website at https://www.jamaicatax.gov.jm.