This month’s big win was an outstanding meeting with the Missouri Department of Revenue (MO-DOR), Sales Tax Division team. It resulted in our near complete agreement with the legislative intent and implementation of the Solar Sales Tax Exemption law, passed by the legislature & signed by Governor Parson last year. It’s timely and accurate implementation results in a sales tax exemption for solar parts, equipment, and system purchases effective January 1, 2023.

Yes, installers, distributor, dealers, project designers and developers, etc. can all take this exemption from sales tax when purchasing solar parts, equipment, systems, etc. beginning January 1, 2023.

What happened?  In the simplest terms, first please know a law’s associated regulations and/or implementation is a vital step in the policy process. At first glance, some thought the statutory interpretation may not go as far as the lawmakers intended. Thanks to the MOSEIA efforts and the right interpretation and timely and accurate implementation by MO-DOR, Sales Tax Division, we are good to go.

How or Why is that?  Specifically, please look at the placement of the “OR” in the statutory language.  Anyone selling to the end-user OR using the product to produce, collect and transmit electricity for resale or retail, is exempt.

DOR states:  “Effective January 1, 2023 companies purchasing solar energy systems, components parts to construct the systems, and the materials and supplies used to construct or improve these systems are sales tax exempt. To claim the exemption the purchaser must supply Form 149, Sales and Use Tax Exemption. The purchaser would mark the “Other” box and put Solar Systems for the reasoning.

  • Click Here for the MO-DOR exemption form / certificate you MUST use top claim the exemption.
  • Click here for the Mo-DOR Notes on the issues…

 The Statute Reads: “Section 144.030.2(46), RSMo, states all purchases by a company of solar photovoltaic energy systems, components used to construct a solar photovoltaic energy system, and all purchases of materials and supplies used directly to construct or make improvements to such systems, provided that such systems:

  • Are sold or leased to an end user;

OR

  • Are used to produce, collect and transmit electricity for resale or retail.”

Please realize MOSEIA is now working with DOR to clarify their notes, FAQ’s, and answer questions derived from any inconsistency in the information. For example, DIY purchasers at a home/hardware store are NOT covered but all others described above are sales tax exempt. Email, text or call MOSEIA Executive Director, Jonathan Dolan, for further information, education, or clarification as your CPA or legal advisors may require.