FACTS: Malibu Company sells fans and ductwork as components of a solar heating system to Taxpayer Taylor. The solar heating system is the primary heating system in Taxpayer Taylor's principal residence in Massachusetts.

ISSUE: Is the sale of the fans and ductwork as components of a solar heating system to Taxpayer Taylor for use in his principal residence exempt from the sales tax?

DISCUSSION: Sales of solar equipment are exempt from the sales tax if two requirements are met. G.L. c. 64H, § 6(dd).

First, the equipment must directly relate to a solar system used as a primary or auxiliary power system for the purpose of heating or otherwise supplying energy needs. If the sole purpose of the equipment purchased is to transmit or utilize solar energy to provide power or heat, this requirement is met. However, it is not met if the item also serves as a structural component of a dwelling, as for example, glass used in a solar sunspace.

Second, the solar system to which the equipment relates must be used in an individual's principal residence in Massachusetts. This requirement is not met if the equipment purchased is for use in an individual's principal residence outside Massachusetts, or in a vacation home or on commercial premises.

DIRECTIVE: The sale of the fans and ductwork as components of a solar heating system to Taxpayer Taylor for use in his principal residence is exempt from the sales tax.

REFERENCE: G.L. c. 64H, § 6(dd).

/s/Ira A. Jackson
Ira A. Jackson
Commissioner of Revenue

June 12, 1986

DOR-D 86-2

This Directive represents the official position of the Department of Revenue on the application of the law to the facts as stated. The Department and its personnel will follow this Directive, and taxpayers may rely upon it, unless it is revoked or modified pursuant to 830 CMR § 62C.01(5)(e). In applying this Directive, however, the effect of subsequent legislation, regulations, court decisions, Directives, and TIRs must be considered, and Department personnel and taxpayers may rely upon this Directive only if the facts, circumstances and issues presented in other cases are substantially the same as those set forth in this Directive.