Exempts from sales tax energy storage systems, as defined in § 39-33-1.

Rhode Island Bill Summary: Sales Tax Exemption for Energy Storage Systems

This bill would remove the Rhode Island sales tax from the purchase of energy storage systems. Energy storage systems are devices — most commonly large batteries — that store electricity for later use. They can be used in homes, businesses, or connected to the power grid to save energy generated from sources like solar panels and release it when needed.

Under current law, energy storage systems are subject to Rhode Island's standard sales tax when purchased. If this bill passes, buyers would no longer have to pay that tax, making these systems less expensive to purchase. The bill uses the definition of "energy storage system" already established in Rhode Island law (specifically in section 39-33-1 of state law, which relates to energy storage).

This bill would primarily affect homeowners, businesses, and organizations that are considering buying or installing energy storage systems in Rhode Island. By reducing the upfront cost, the exemption could make it more financially attractive for people to invest in this technology. It could also indirectly affect the state's budget, since the government would collect less sales tax revenue as a result of the exemption.

The bill has been introduced in the Rhode Island House of Representatives and referred to the House Finance Committee, where a hearing is scheduled for April 2026. It has not yet been voted on or signed into law.