Jamaicans to benefit from income tax credit for solar systems

Members of the Upper House yesterday passed the Income Tax Amendment Act without changes.

The bill provides for an income tax credit at the rate of 30 per cent of the acquisition and installation cost of a solar photovoltaic system for the taxpayer’s primary residence to a maximum cost of $4 million.

Minister Without Portfolio in the Office of the Prime Minister with responsibility for Skills, Digital Transformation and Information, Dr Dana Morris Dixon, who piloted the bill, said the maximum credit an individual will be allowed to claim is $1.2 million.

Senator Morris Dixon said the legislation formalises an important component of the government’s green policy.

This measure forms part of a larger goal to reduce the country’s dependence on fossil fuels, said Morris Dixon, adding that the move would substantially increase the share of renewable energy locally.

According to the Cabinet minister, the adoption of photovoltaic systems at the residential levels would lead to substantial savings on electricity bills for Jamaicans.

Leader of Opposition business in the Senate, Peter Bunting, said the legislation would create a material incentive particularly to middle and upper income taxpayers.

He argued that the tax credit would mean nothing to Jamaicans who are currently at or below the income tax threshold.

One of the requirements to benefit from the tax credit is that the taxpayer’s principal place of residence should not be used as a commercial space. Bunting noted that this would disqualify many persons who were operating their micro businesses from home.

JPS ‘FAILED THE TEST’

Meanwhile, Bunting used the opportunity to chide the Jamaica Public Service (JPS) for its lethargic approach in restoring electricity to customers in Manchester South.

He said JPS has “failed the test” in how it is carrying out restoration of power, particularly in Manchester South, but also in St Elizabeth.

The Opposition lawmaker, who is the People’s National Party caretaker for Manchester South, bemoaned the hardships being faced by the majority of residents who have been without power since July 3 when Hurricane Beryl devastated sections of Jamaica’s south coast.

“The entire Grove Town division has no electricity. Just perhaps 40 per cent of Alligator Pond, Newport and Porus have electricity,” he said.

Bunting also complained that the Cross Keys and Asia police stations that serve more than 80 per cent of the constituency have been without electricity.

“These have had no power and therefore they have no radio, they have no communication at all for the last three and a half weeks,” he said.

He said crime has increased in South Manchester, with numerous robberies, break-ins and murders recorded over the period.

“Criminals are able to move now with relative abandon so the implications are many. These are implications for security and commerce, with the police urging businesses to close early as they cannot guarantee them service after dark,” Bunting noted.

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