AN ACT RELATING TO TAXATION -- SALES AND USE TAXES -- LIABILITY AND COMPUTATION

2026 Regular Session Introduced by Alana DiMario and 9 co-sponsors

exempts from Rhode Island sales tax the behind-the-meter batteries interconnected with a solar PV system.

05/21/2026 Committee recommended measure be held for further study

Overview

SB 2244 (Rhode Island, 2026) is an act to modify the state Sales and Use Taxes – Liability and Computation. The bill, introduced January 23, 2026 and referred to Senate Finance, primarily adds a new exemption for behind-the-meter batteries interconnected with a solar photovoltaic (PV) system. The measure takes effect upon passage.

Primary purpose and intent

Expand the list of exempt items under Rhode Island sales and use taxes by specifically exempting certain solar energy storage equipment.

Clarify and codify exemptions in the broad framework of 44-18-30, which enumerates gross receipts exempt from sales and use taxes.

The Explanatory Note at the end reinforces the key provision: exemption for behind-the-meter batteries interconnected with a solar PV system.

Key provisions and changes

Section 44-18-30 (gross receipts exempt from sales and use taxes): The bill adds a new exemption related to solar energy storage.

Specifically, the act would exempt from sales tax the “behind-the-meter batteries interconnected with a solar photovoltaic system.”

The exemption would apply to the sale, storage, use, or other consumption of these batteries in Rhode Island.

The act does not appear to modify other existing exemptions or create new tax credits; it adds a targeted exemption to the list of items already exempt (Section 44-18-30 and its numerous subitems).

Effective date: Immediately upon passage (no separate/ future effective date).

Who/what would be affected

Purchasers of behind-the-meter batteries that are interconnected with solar PV systems (i.e., energy storage hardware used in conjunction with residential or commercial solar installations) would benefit from the sales tax exemption.

Retailers, suppliers, and installers of solar PV systems and batteries would administer the exemption (selling at tax-exempt rate when qualifying batteries are sold; dealers may need to rely on establishing that the product is a behind-the-meter battery tied to a solar PV system).

Procedural and timeline aspects

Legislative action: Introduced in January 2026; referred to Senate Finance.

Next steps: For the bill to become law, it would need passage by the Rhode Island General Assembly and signature by the Governor (if required by the bill’s path). The current status shows scheduling for hearing/consideration as of May 15, 2026.

Effective date: The bill states it takes effect upon passage.

Potential impacts and considerations

Tax burden: The exemption reduces the tax treatment for a component of solar energy infrastructure, potentially lowering the effective cost of solar energy storage and encouraging deployment.

Environmental impact: By reducing the after-tax cost of solar storage, the bill could indirectly promote renewable energy adoption and resilience.

Administrative considerations: Tax administrators and retailers will need to verify that a given battery purchase qualifies as a behind-the-meter storage solution connected to a solar PV system to apply the exemption.

If you’d like, I can adapt this into a one-page briefing for policymakers, or add a comparison with similar exemptions in other states.