Solar tax credit clouded in mystery

THE EDITOR, Madam:

In March 2023, the Government had announced a tax incentive for those who invest in a solar system at their primary residence, allowing them to get a tax credit of 30 per cent of the value of the solar system not exceeding $4 million. I installed my solar system in 2023 and in 2024 I tried to apply for this tax credit. The Tax Administration Jamaica (TAJ) said that the legislative framework was not in place as yet to handle this tax credit, and so I would need to file for it in 2025.

So now we are in 2025, and I am being told that I cannot get the tax credit for the following reasons:

1) The application form requires that you get a certificate from an electrical inspector. I got this (took about three weeks); however, the TAJ website would not allow the submission of the form as the certificate was issued in 2025, even though the solar system was installed in 2023. The website indicates that the certificate must be done in the year of filing or before (2023 or 2024). After discussion with a senior officer at TAJ, they indicated that while it may be possible for them to get the rules adjusted on their website, the following must also be fulfilled.

2) TAJ indicated that there is a requirement for a solar licence. After a discussion with the Ministry of Science, Energy, Telecommunications and Transport, I was told that the only licence available is a net billing licence, as the regulation for an auxiliary connection licence has not been finalised, which is expected to be finalised in late 2025. The ministry said the requirement to have a licence is a legal requirement from the 2015 Electricity Act. However, the Government hasn’t drafted the legislation, 10 years later, for auxiliary connection. As a result, my only option is to apply for a net billing licence, even though I am not doing net billing, and this takes about 40 days and therefore not allow me to file my returns before March 15.

Why doesn’t the Government communicate the requirements clearly and in a timely manner, so that policy measures can have meaningful impact? Why can’t we get policy and implementation right?

I am being told by solar installers that almost all residential systems are not net billing systems and therefore would not qualify. The bigger question is, how many people benefited from this incentive?

FRUSTRATED TAXPAYER