CHAPTER 512
FORMERLY
HOUSE BILL NO. 475
AS AMENDED BY
HOUSE AMENDMENT NOS. 1 & 2 AND
SENATE AMENDMENT NO. 1
AN ACT TO AMEND CHAPTER 11, TITLE 30, DELAWARE CODE, RELATING TO PERSONAL INCOME TAX CREDITS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend Chapter 11, Title 30, Delaware Code, by adding a new section to subchapter II of Chapter 11 to read as follows:
"§1112. Credit for Installation of Solar Energy Device.
(a) A resident individual shall be allowed a credit of taxes due under this chapter of $200 for the requisition cost including installation costs of solar energy devices designed to produce domestic hot water on premises in Delaware which are owned and controlled by the taxpayer at the time of installation, payment for which is made by the taxpayer during the taxable year. This credit only applies towards those solar energy devices used to produce hot water which:
(1) Meet or exceed the "Intermediate Standards for Solar domestic hot water systems/HUD Initiative (NBSIR 77-1272).
(2) Are installed in accordance with the installation guidelines prepared by the solar energy application center, Polytechnic Institute of New York for use in the HUD Solar Hot Water Initiative Program 1977.
(b) In the case of a solar energy device purchased by the taxpayer as a unit, the credit provided by this section will only apply to those solar energy devices used to produce hot water which include reasonable warranties. To be considered reasonable the warranty must, at a minimum:
(i) Comply with all applicable provisions of the Magnuson-Moss Warranty Act of 1975 (15 U.S.C. 2301 et Lies.) and the regulations published pursuant thereto by the Federal Trade Commission which established Federal disclosure terms and substantive and enforcement provisions for written warranties on consumer products;
(ii) Include a one-year warranty from the Installer against failure of the solar system, any component, or assembly where such failure is caused by defect in materials, manufacture or installation. The warranty shall cover the full costs of parts, labor, shipping,
and handling required to remedy the defect, including, if necessary, replacement at the site, and shall run from the initial date of installation completion. The warranty shall also include provision for field inspection within a reasonable time of receipt of the complaint at no charge to the customer, to verify failure, establish probable cause, and determine corrective action required; however, if the inspection reveals no warranty-related defect, then a reasonable charge may be made for the inspection. NOTE: The installer's warranty may include pass-through warranties provided by his supplier or the manufacturer;
(iii) Include a five (5) year manufacturer's warranty which shall include:
(a) A five (5) year collector warranty against defects in materials or manufacture. The warranty shall cover the full costs of parts, labor, shipping and handling required to remedy the defect, including, if necessary, replacement at the site, and shall run from the date of installation completion.
(b) A five (5) year warranty against corrosion of the absorber plate and other coolant passages. This corrosion warranty shall cover, for the first year, full costs of parts, labor, shipping and handling required to remedy the defect, including, if necessary, replacement at the site. For the remainder of the warranty period, the corrosion warranty shall cover the cost of furnishing a new collector, if necessary. The corrosion warranty shall run from the date of installation completion.
(c) A five (5) year warranty against defects in materials and manufacture of heat exchangers and tanks. This warranty shall include shilpping, and handling, but need not include removal and reinstallation.
(iv) The manufacturer's warranty shall also include a provision for a field inspection within a reasonable time of the complaint at no charge to the consumer to verify failure establish probable cause, and determine corrective action required; however, if the inspection reveals no warranty-related defect then a reasonable Charge may be made for the inspection.
(v) If the manufacturer has provided the installer with clear and reasonable installation instructions, and the consumer with clear and reasonable maintenance instructions, then the warranties may specify reasonable installation and maintenance procedures for the warranty to be effective. However, no warranty shall be voided or in any way reduced by conditions that may occur in normal operation of the system. All warranties must apply to subsequent owners of installed systems:'