Energy Efficiency and Renewable Energy Tax Incentives Federal and State Energy Tax Programs

Energy Efficiency and Renewable Energy Tax Incentives Federal and State Energy Tax Programs
ENERGY EFFICIENCY AND RENEWABLE ENERGY TAX INCENTIVES
FEDERAL AND STATE ENERGY TAX PROGRAMS
J EROME L. G ARCIANO
J ULY 2013
Renewable Energy and Green Building Tax Incentives
Federal and State Energy Tax Programs
Jerome L. Garciano
July 2013
© 2013 Jerome L. Garciano
Introduction to
KLEIN HORNIG LLP
Klein Hornig LLP is one of the nation’s premier law firms concentrating on structuring, managing and closing
complex real estate and financing transactions in affordable housing, community development and renewable energy,
including transactions utilizing a wide variety of tax credits and other tax and financial incentives. With offices and
Boston and Washington, DC, the firm’s attorneys represent developers, lenders, investors and governmental agencies
involved in renewable energy and infrastructure projects. These clients engage in a wide range of activities in the
green building and renewable energy sectors including acquiring, managing, investing in and providing financing for
renewable energy and green building projects. Our experience and expertise allow us to provide value-added service
in many different areas of alternative energy, including solar, green building, wind and other and other energyefficient technologies.
Jerome L. Garciano is an associate at Klein Hornig whose practice includes working with many types of tax credits
and similar incentives, including assisting developers and investors utilizing green development, energy tax credits
and other financial tools.
This volume presents certain federal and state tax incentives promoting the renewable energy and energy efficiency
industries. Each section outlines the basic features and regulatory requirements for a tax program which provides
financial incentives for clean technology development through renewable energy and energy efficiency projects. For
additional assistance with these tax incentives please contact Jerome Garciano at 617-224-0623
([email protected]). For copies or updates to this outline please contact Brenna Chaplain at 617-224-0615
([email protected])
These materials were prepared for general informational purposes only, may not reflect current legal developments
and do not constitute legal advice. The information offered here is not intended to create, does not create, a lawyerclient relationship with Klein Hornig LLP. Recipients of any of this content should not act upon the information
without obtaining legal or other professional advice. Klein Hornig LLP expressly disclaims all responsibility and
liability for any actions taken or not taken on the basis of any of the content from this outline.
Disclosure Under U.S. IRS Circular 230: Klein Hornig LLP informs you that any tax advice contained in this
communication, including any attachments, was not intended or written to be used, and cannot be used, for the
purpose of avoiding federal tax related penalties or promoting, marketing or recommending to another party any
transaction or matter addressed herein.
Summary Chart of Federal/State Renewable Energy and Green Building Tax Incentives - July 2013
Sec
Jurisdiction
Statute
Incentive Title
00.00 Federal Tax Incentives for Renewable Energy and Green Building
00.01
Federal
§45
Renewable Electricity Production
00.01
Federal
§45
Renewable Electricity Production
00.01
Federal
§45
Renewable Electricity Production
00.01
Federal
§45
Renewable Electricity Production
00.01
Federal
§45
Renewable Electricity Production
00.01
Federal
§45
Renewable Electricity Production
00.01
Federal
§45
Renewable Electricity Production
00.01
Federal
§45
Renewable Electricity Production
00.02
Federal
§48
Investment In Energy Property
00.02
Federal
§48
Investment In Energy Property
00.02
Federal
§48
Investment In Energy Property
00.02
Federal
§48
Investment In Energy Property
00.02
Federal
§48
Investment In Energy Property
00.02
Federal
§48
Investment In Energy Property
00.03
Federal
§48C
Investment In Advanced Energy Property
00.03
Federal
§48C
Investment In Advanced Energy Property
00.03
Federal
§48C
Investment In Advanced Energy Property
00.03
Federal
§48C
Investment In Advanced Energy Property
00.03
Federal
§48C
Investment In Advanced Energy Property
00.04
Federal
§30C
Qualifying Alternative Fuel Vehicle Refueling Pro
00.04
Federal
§30C
Qualifying Alternative Fuel Vehicle Refueling Pro
00.04
Federal
§30C
Qualifying Alternative Fuel Vehicle Refueling Pro
00.05
Federal
§40
Certain Alternative Fuels
00.05
Federal
§40
Certain Alternative Fuels
00.05
Federal
§40
Certain Alternative Fuels
00.06
Federal
§40A
Biodiesel Fuels
00.06
Federal
§40A
Biodiesel Fuels (Small Agri)
00.07
Federal
§30
Plug-In Electric Vehicles
00.08
Federal
§30D
New Qualifying Plug-In Electric Drive Motor Veh
00.08
Federal
§30D
New Qualifying Plug-In Electric Drive Motor Veh
00.09
Federal
§30B
Alternative Motor Vehicles
00.09
Federal
§30B
Alternative Motor Vehicles
00.09
Federal
§30B
Alternative Motor Vehicles
00.10
Federal
§45L
New Energy Efficient Homes
00.11
Federal
§45M
Energy Efficient Appliances (Dishwashers)
00.11
Federal
§45M
Energy Efficient Appliances (Clothes washers)
00.11
Federal
§45M
Energy Efficient Appliances (Refrigerators)
00.12
Federal
§179D
Energy Efficient Commercial Buildings
00.13
Federal
§168(e)(3)
Certain Energy Property
00.13
Federal
§168(e)(3)
Certain Energy Property
00.13
Federal
§168(e)(3)
Certain Energy Property
00.13
Federal
§168(e)(3)
Certain Energy Property
00.14
Federal
§168(l)
Cellulosic Biofuel Plant Property
00.15
Federal
§41
Energy Research
00.16
Federal
§54C
New Clean Renewable Energy Bonds
00.16
Federal
§54C
New Clean Renewable Energy Bonds
00.16
Federal
§54C
New Clean Renewable Energy Bonds
00.16
Federal
§54C
New Clean Renewable Energy Bonds
00.16
Federal
§54C
New Clean Renewable Energy Bonds
00.16
Federal
§54C
New Clean Renewable Energy Bonds
00.16
Federal
§54C
New Clean Renewable Energy Bonds
00.16
Federal
§54C
New Clean Renewable Energy Bonds
00.17
Federal
§54D
Qualifying Energy Conservation Bonds
00.17
Federal
§54D
Qualifying Energy Conservation Bonds
00.18
Federal
§25C
Nonbusiness Energy Property
00.19
Federal
§25D
Residential Energy Efficient Property
00.19
Federal
§25D
Residential Energy Efficient Property
00.19
Federal
§25D
Residential Energy Efficient Property
00.19
Federal
§25D
Residential Energy Efficient Property
(Eastern U.S.)
Technology
Tax
Type
Taxpayer
Period (yrs
Amount
Maximum
Expiration
Biomass
Wind
Methane
Geothermal
Solar Electric
Irrigation
Hydroelectric
Marine
Fuel cell
Solar
Geothermal
Wind
Biomass
Cogeneration
Solar Electric
Wind
Geothermal
Alternative Fuel
Electric Vehicle
Alternative Fuel
Electric Vehicle
Fuel cell
Alternative Fuel
Ethanol
Biofuel
Biodiesel
Biodiesel
Electric Vehicle
Electric Vehicle
Electric Vehicle
Fuel cell
Alternative Fuel
Electric Vehicle
Energy Efficiency
Energy Efficiency
Energy Efficiency
Energy Efficiency
Energy Efficiency
Solar
Geothermal
Fuel cell
Biomass
Biofuel
Various
Biomass
Wind
Methane
Geothermal
Solar
Irrigation
Hydroelectric
Marine
Energy Efficiency
Alternative Fuel
Energy Efficiency
Solar Electric
Solar Thermal
Fuel cell
Wind
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Deduction
Deduction
Deduction
Deduction
Deduction
Deduction
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Producer
Producer
Producer
Producer
Producer
Producer
Producer
Producer
Owner
Owner
Owner
Owner
Owner
Owner
Investor
Investor
Investor
Investor
Investor
Owner
Owner
Owner
Producer
Producer
Producer
Producer
Producer
Owner
Owner
Owner
Purchaser
Purchaser
Purchaser
Builder
Manufacturer
Manufacturer
Manufacturer
Owner
Owner
Owner
Owner
Owner
Owner
Researcher
Holder
Holder
Holder
Holder
Holder
Holder
Holder
Holder
Holder
Holder
Owner
Owner
Owner
Owner
Owner
10
10
10
10
10
10
10
10
5
5
5
5
5
5
5
5
5
5
-
$0.023/Kwh
$0.023/Kwh
$0.011/Kwh
$0.023/Kwh
$0.023/Kwh
$0.011/Kwh
$0.011/Kwh
$0.011/Kwh
30%
30%
10%
10%
10%
10%
30%
30%
30%
30%
30%
30%
30%
30%
$0.60/ gal
$0.10/gal
$1.01/gal
$1.00/gal
$0.10/gal
10%
$7,500
10%
$4,000-$40,000
$2,500-$20,000
$1,500-$10,400
$1,000-$2,000
$50-$75
$225
$150-$200
100%
200% DB
200% DB
200% DB
200% DB
50%
20%
0 interest
0 interest
0 interest
0 interest
0 interest
0 interest
0 interest
0 interest
0 interest
0 interest
10%
30%
30%
30%
30%
$1,500/0.5 kw
$200/kw
$30 million
$30 million
$30 million
$30 million
$30 million
$30,000
$30,000
$30,000
$1.5 million
$1.5 million
$1.5 million
15 million gallons
15 million gallons
$2,500
$2,500
4% gross receipts
4% gross receipts
4% gross receipts
$1.80/SF
$500
$500/0.5kw
-
2013
2013
2013
2013
2005
2008
2013
2013
2016
2016
2016
2016
2016
2016
2013
2013
2013
2013
2013
2013
2013
2014
2011
2011
2013
2013
2013
2011
Limit
2013
2014
2010
2011
2013
2013
2013
2013
2013
2016
2016
2016
2016
2013
2009
Limit
Limit
Limit
Limit
Limit
Limit
Limit
Limit
Limit
Limit
2013
2016
2016
2016
2016
Sec
Jurisdiction
Statute
Incentive Title
Technology
00.19
Federal
§25D
Residential Energy Efficient Property
Geothermal
01.00 Alabama State Tax Incentives for Renewable Energy and Green Building
01.01
Alabama
§40-18-190
Alternative Energy Electricity Production Facilitie
Wind
01.01
Alabama
§40-18-190
Alternative Energy Electricity Production Facilitie Alternative Fuel
01.01
Alabama
§40-18-190
Alternative Energy Electricity Production Facilitie
Biomass
01.01
Alabama
§40-18-190
Alternative Energy Electricity Production Facilitie
Marine
01.01
Alabama
§40-18-190
Alternative Energy Electricity Production Facilitie
Geothermal
01.01
Alabama
§40-18-190
Alternative Energy Electricity Production Facilitie Solar Electric
01.01
Alabama
§40-18-190
Alternative Energy Electricity Production Facilitie
Irrigation
01.01
Alabama
§40-18-190
Alternative Energy Electricity Production Facilitie
Methane
01.01
Alabama
§40-18-190
Alternative Energy Electricity Production Facilitie Hydroelectric
01.01
Alabama
§40-18-190
Alternative Energy Electricity Production Facilitie
Fuel cell
01.02
Alabama
§40-9B-4
Alternative Energy Production Facilities
Wind
01.02
Alabama
§40-9B-4
Alternative Energy Production Facilities
Alternative Fuel
01.02
Alabama
§40-9B-4
Alternative Energy Production Facilities
Biomass
01.02
Alabama
§40-9B-4
Alternative Energy Production Facilities
Marine
01.02
Alabama
§40-9B-4
Alternative Energy Production Facilities
Geothermal
01.02
Alabama
§40-9B-4
Alternative Energy Production Facilities
Solar
01.02
Alabama
§40-9B-4
Alternative Energy Production Facilities
Irrigation
01.02
Alabama
§40-9B-4
Alternative Energy Production Facilities
Methane
01.02
Alabama
§40-9B-4
Alternative Energy Production Facilities
Hydroelectric
01.02
Alabama
§40-9B-4
Alternative Energy Production Facilities
Fuel cell
01.03
Alabama
§40-18-15(16 Wood-Burning Heating Systems
Biomass
09.00 Connecticut State Tax Incentives for Renewable Energy and Green Building
09.01
Connecticut
§12-412 (117) Solar And Geothermal Systems
Solar
09.01
Connecticut
§12-412 (117) Solar And Geothermal Systems
Geothermal
09.02
Connecticut
§12-214(a)
Alternative Energy And Motor Vehicle Systems
Solar
09.02
Connecticut
§12-214(a)
Alternative Energy And Motor Vehicle Systems
Wind
09.02
Connecticut
§12-214(a)
Alternative Energy And Motor Vehicle Systems
Hydroelectric
09.02
Connecticut
§12-214(a)
Alternative Energy And Motor Vehicle Systems
Biomass
09.02
Connecticut
§12-214(a)
Alternative Energy And Motor Vehicle Systems
Alternative Fuel
09.02
Connecticut
§12-214(a)
Alternative Energy And Motor Vehicle Systems
Electric Vehicle
09.03
Connecticut
§12-412(113) Fuel Cell Manufacturing Facilities
Fuel cell
09.04
Connecticut
§16-46e(d)
State Rebates For Efficient Furnaces And Boilers Energy Efficiency
09.05
Connecticut
§12-587
Sales Or Import Of Alternative Fuel Commercial H Alternative Fuel
09.06
Connecticut
§12-217mm
Energy Efficient Green Building
Energy Efficiency
09.07
Connecticut
§12-81(56),(57) Renewable Energy Systems
Solar
09.07
Connecticut
§12-81(56),(57) Renewable Energy Systems
Wind
09.07
Connecticut
§12-81(56),(57) Renewable Energy Systems
Fuel cell
09.07
Connecticut
§12-81(56),(57) Renewable Energy Systems
Methane
09.07
Connecticut
§12-81(56),(57) Renewable Energy Systems
Marine
09.07
Connecticut
§12-81(56),(57) Renewable Energy Systems
Hydroelectric
09.07
Connecticut
§12-81(56),(57) Renewable Energy Systems
Biomass
09.08
Connecticut
§12-412k
Residential Energy-Efficient Products
Energy Efficiency
09.09
Connecticut
§12-635
Energy Conservation Programs Serving Low-Inco Energy Efficiency
10.00 Delaware State Tax Incentives for Renewable Energy and Green Building
10.01
Delaware
§2040
Clean Energy Manufacturing Jobs
Solar
10.01
Delaware
§2040
Clean Energy Manufacturing Jobs
Fuel cell
10.01
Delaware
§2040
Clean Energy Manufacturing Jobs
Wind
10.01
Delaware
§2040
Clean Energy Manufacturing Jobs
Geothermal
11.00 District of Columbia State Tax Incentives for Renewable Energy and Green Building
11.01District of Columbi §47-1508(a)(12) Cogeneration Equipment Personal Property Tax E
Cogeneration
11.02District of Columbi §47-1508(a)(11) Solar Energy Systems
Solar
12.00 Florida State Tax Incentives for Renewable Energy and Green Building
12.01
Florida
§193.624
Residential Renewable Energy Source Devices
Solar
12.01
Florida
§193.624
Residential Renewable Energy Source Devices
Wind
12.01
Florida
§193.624
Residential Renewable Energy Source Devices
Geothermal
12.02
Florida
§220.193
Renewable Energy Production
Biomass
12.02
Florida
§220.193
Renewable Energy Production
Solar
12.02
Florida
§220.193
Renewable Energy Production
Geothermal
12.02
Florida
§220.193
Renewable Energy Production
Wind
12.02
Florida
§220.193
Renewable Energy Production
Marine
12.02
Florida
§220.193
Renewable Energy Production
Hydroelectric
Tax
Income
Type
Credit
Taxpayer
Owner
Period (yrs
-
Amount
30%
Maximum
-
Expiration
2016
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Property
Property
Property
Property
Property
Property
Property
Property
Property
Property
Income
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Abatement
Abatement
Abatement
Abatement
Abatement
Abatement
Abatement
Abatement
Abatement
Abatement
Deduction
Utility
Utility
Utility
Utility
Utility
Utility
Utility
Utility
Utility
Utility
Utility
Utility
Utility
Utility
Utility
Utility
Utility
Utility
Utility
Utility
Owner
20
20
20
20
20
20
20
20
20
20
-
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
-
2015
2015
2015
2015
2015
2015
2015
2015
2015
2015
2018
2018
2018
2018
2018
2018
2018
2018
2018
2018
-
Sales
Sales
Business
Business
Business
Business
Business
Business
Sales
Income
Income
Income
Property
Property
Property
Property
Property
Property
Property
Sales
Income
Exemption
Exemption
Exemption
Exemption
Exemption
Exemption
Exemption
Exemption
Exemption
Exclusion
Exemption
Credit
Exemption
Exemption
Exemption
Exemption
Exemption
Exemption
Exemption
Exemption
Credit
Purchaser
Purchaser
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Purchaser
Rebatee
Seller
Owner
Owner
Owner
Owner
Owner
Owner
Owner
Owner
Purchaser
Investor
-
100%
100%
100%
100%
100%
100%
100%
100%
100%
$500
100%
5-11%
100%
100%
100%
100%
100%
100%
100%
100%
100%
$150-250/SF
-
-
Income
Income
Income
Income
Credit
Credit
Credit
Credit
Manufacturer
Manufacturer
Manufacturer
Manufacturer
-
$750/Job & $100k
$750/Job & $100k
$750/Job & $100k
$750/Job & $100k
$500,000
$500,000
$500,000
$500,000
-
Property
Property
Exemption
Exemption
Owner
Owner
-
100%
100%
-
-
Property
Property
Property
Income
Income
Income
Income
Income
Income
Exemption
Exemption
Exemption
Credit
Credit
Credit
Credit
Credit
Credit
Owner
Owner
Owner
Producer
Producer
Producer
Producer
Producer
Producer
10
10
10
-
100%
100%
100%
$0.01/kWh
$0.01/kWh
$0.01/kWh
$0.01/kWh
$0.01/kWh
$0.01/kWh
$1 million
$1 million
$1 million
$1 million
$1 million
$1 million
2016
2016
2016
2016
2016
2016
Sec
12.03
12.03
12.03
12.04
12.05
12.05
12.05
13.00
13.01
13.01
13.01
13.01
13.01
13.01
13.02
13.03
13.04
13.05
13.06
13.06
13.06
13.06
13.06
17.00
17.01
17.01
17.02
17.03
18.00
18.01
18.01
18.01
18.01
18.02
18.03
18.04
18.04
18.05
18.06
18.07
21.00
21.01
21.01
21.01
21.01
21.01
21.01
21.01
21.02
21.02
21.02
21.02
21.03
21.03
21.03
21.03
21.03
21.03
21.03
21.04
21.05
21.06
21.07
Jurisdiction
Statute
Incentive Title
Florida
§220.192
Alternative Fuel Vehicle Property
Florida
§220.192
Alternative Fuel Vehicle Property
Florida
§220.192
Alternative Fuel Vehicle Property
Florida
§212.08(7)(hh) Solar Energy Systems
Florida
§212.08(7)(hhh) Alternative Fuel Distribution Property
Florida
§212.08(7)(hhh) Alternative Fuel Distribution Property
Florida
§212.08(7)(hhh) Alternative Fuel Distribution Property
Georgia State Tax Incentives for Renewable Energy and Green Building
Georgia
§48-7-29.14
Clean Energy Property
Georgia
§48-7-29.14
Clean Energy Property
Georgia
§48-7-29.14
Clean Energy Property
Georgia
§48-7-29.14
Clean Energy Property
Georgia
§48-7-29.14
Clean Energy Property
Georgia
§48-7-29.14
Clean Energy Property
Georgia
§48-8-3(83)
Biomass Materials
Georgia
§48-7-40.16
Zero Emission Vehicles And Chargers
Georgia
§48-8-3(82)
Energy-Efficient Products
Georgia
§48-7-29.14
Biomass Material Transportation
Georgia
§48-7-40
Alternative Energy Manufacturing
Georgia
§48-7-40
Alternative Energy Manufacturing
Georgia
§48-7-40
Alternative Energy Manufacturing
Georgia
§48-7-40
Alternative Energy Manufacturing
Georgia
§48-7-40
Alternative Energy Manufacturing
Illinois State Tax Incentives for Renewable Energy and Green Building
Illinois
35 §200/10-10 Solar and Wind Energy Property
Illinois
35 §200/10-10 Solar and Wind Energy Property
Illinois
20 §655/5.5
Wind Energy Business For Building Materials
Illinois
35 §10/5
Renewable Energy and Conservation Job Creation
Indiana State Tax Incentives for Renewable Energy and Green Building
Indiana
§6-1.1-12-26
Renewable Energy Property
Indiana
§6-1.1-12-26
Renewable Energy Property
Indiana
§6-1.1-12-26
Renewable Energy Property
Indiana
§6-1.1-12-26
Renewable Energy Property
Indiana
§6-3.1-27
Biodiesel And Blended Biodiesel Production
Indiana
§6-3.1-28
Ethanol Production
Indiana
§6-3.1-1
Alternative Fuel Vehicle Manufacturing
Indiana
§6-3.1-1
Alternative Fuel Vehicle Manufacturing
Indiana
§6-3-2-5
Installation Of Insulation
Indiana
§6-3.1-31.5
Certain Energy Star Hvac Equipment
Indiana
§6-3-2-5.3
Solar Powered Roof Vent Or Fan
Kentucky State Tax Incentives for Renewable Energy and Green Building
Kentucky
§154.27-010
Renewable Energy Facilities
Kentucky
§154.27-010
Renewable Energy Facilities
Kentucky
§154.27-010
Renewable Energy Facilities
Kentucky
§154.27-010
Renewable Energy Facilities
Kentucky
§154.27-010
Renewable Energy Facilities
Kentucky
§154.27-010
Renewable Energy Facilities
Kentucky
§154.27-010
Renewable Energy Facilities
Kentucky
§141.435
Renewable Energy Systems
Kentucky
§141.435
Renewable Energy Systems
Kentucky
§141.435
Renewable Energy Systems
Kentucky
§141.435
Renewable Energy Systems
Kentucky
§154.27-010
Renewable Energy Facilities
Kentucky
§154.27-010
Renewable Energy Facilities
Kentucky
§154.27-010
Renewable Energy Facilities
Kentucky
§154.27-010
Renewable Energy Facilities
Kentucky
§154.27-010
Renewable Energy Facilities
Kentucky
§154.27-010
Renewable Energy Facilities
Kentucky
§154.27-010
Renewable Energy Facilities
Kentucky
§141.422
Biodiesel And Renewable Diesel
Kentucky
§141.4244
Cellulosic Ethanol Or Ethanol Fuel
Kentucky
§141.435
Energy Efficient Commercial Property
Kentucky
§139.518
Energy Efficient Manufacturing Machinery And E
Technology
Biomass
Biodiesel
Ethanol
Solar
Biomass
Biodiesel
Ethanol
Tax
Income
Income
Income
Sales
Sales
Sales
Sales
Type
Credit
Credit
Credit
Exemption
Refund
Refund
Refund
Taxpayer
Investor
Investor
Investor
Purchaser
Purchaser
Purchaser
Purchaser
Period (yrs
-
Amount
75%
75%
75%
100%
100%
100%
100%
Maximum
$1 million
$1 million
$1 million
-
Expiration
2016
2016
2016
2016
2016
2016
Solar Electric
Solar Thermal
Biomass
Wind
Geothermal
Energy Efficiency
Biomass
Electric Vehicle
Energy Efficiency
Biomass
Solar
Wind
Electric Vehicle
Biofuel
Biomass
Income
Income
Income
Income
Income
Income
Sales
Income
Sales
Income
Income
Income
Income
Income
Income
Credit
Credit
Credit
Credit
Credit
Credit
Exemption
Credit
Exemption
Credit
Credit
Credit
Credit
Credit
Credit
Owner
Owner
Owner
Owner
Owner
Owner
Purchaser
Purchaser
Purchaser
Transporter
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Annual
Annual
5
5
5
5
5
35%
35%
35%
35%
35%
$1.80/SF
100%
10-20%
100%
per ton
$4,000 / job
$4,000 / job
$4,000 / job
$4,000 / job
$4,000 / job
$500,000 / $2,500
$100,000 / $2,500
$500,000 / $2,500
$500,000 / $2,500
$100,000 / $2,000
$100,000
$2,500/$5,000
-
2014
2014
2014
2014
2014
2014
2012
-
Solar
Wind
Wind
Various
Property
Property
Sales
Income
Exemption
Exemption
Exemption
Credit
Owner
Owner
Purchaser
Employer
20
10 or 15
100%
100%
100%
Varies
$108,000/Mw valuation
-
2016
2016
2009
-
Solar
Wind
Hydroelectric
Geothermal
Biodiesel
Ethanol
Alternative Fuel
Electric Vehicle
Energy Efficiency
Energy Efficiency
Solar
Property
Property
Property
Property
Income
Income
Income
Income
Income
Income
Income
Exemption
Exemption
Exemption
Exemption
Credit
Credit
Credit
Credit
Deduction
Credit
Deduction
Owner
Owner
Owner
Owner
Producer
Producer
Manufacturer
Manufacturer
Owner
Purchaser
Owner
-
100%
100%
100%
100%
$1.00/gal
$0.125/gal
15%
15%
100%
20%
50%
$2-3 million
$1,000
$100
$1,000
2010
2016
2016
2010
-
Solar
Wind
Biomass
Methane
Hydroelectric
Alternative Fuel
Various
Solar Thermal
Solar electric
Wind
Geothermal
Solar
Wind
Biomass
Methane
Hydroelectric
Alternative Fuel
Various
Biodiesel
Ethanol
Energy Efficiency
Energy Efficiency
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Income
Income
Income
Sales
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Exemption
Exemption
Exemption
Exemption
Exemption
Exemption
Exemption
Credit
Credit
Credit
Exemption
Producer
Producer
Producer
Producer
Producer
Producer
Producer
Owner
Owner
Owner
Owner
Purchaser
Purchaser
Purchaser
Purchaser
Purchaser
Purchaser
Purchaser
Producer
Producer
Owner
Purchaser
25
25
25
25
25
25
25
25
50%
50%
50%
50%
50%
50%
50%
30%
$3.00/w
30%
30%
100%
100%
100%
100%
100%
100%
100%
$1.00/gal
$1.00/gal
30%
100%
$500
$500
$500
$250
$1,000
-
2015
2015
2015
2015
2015
-
Sec
21.08
21.09
23.00
23.01
23.02
24.00
24.01
24.01
24.01
24.01
24.01
24.01
24.01
24.01
24.02
24.02
24.02
24.03
24.03
24.03
24.03
24.04
24.04
24.05
24.05
24.05
24.06
24.06
24.07
24.08
24.09
24.09
24.09
24.09
24.10
24.11
24.12
24.13
24.14
24.14
24.15
24.16
25.00
25.01
25.01
25.02
25.02
25.02
25.03
25.03
25.04
25.04
25.05
25.05
25.05
25.06
26.00
26.01
26.01
26.01
26.01
26.01
26.01
Jurisdiction
Statute
Incentive Title
Technology
Kentucky
§141.435
Energy Efficient Residential Property
Energy Efficiency
Kentucky
§141.437
Energy Star Homes
Energy Efficiency
Maine State Tax Incentives for Renewable Energy and Green Building
Maine
36 §2017
Qualifying Community Wind Energy Property
Wind
Maine
36 §5219-X
Biofuel Production
Biofuel
Maryland State Tax Incentives for Renewable Energy and Green Building
Maryland
§10-720
Renewable Energy Production
Wind
Maryland
§10-720
Renewable Energy Production
Geothermal
Maryland
§10-720
Renewable Energy Production
Solar
Maryland
§10-720
Renewable Energy Production
Hydroelectric
Maryland
§10-720
Renewable Energy Production
Irrigation
Maryland
§10-720
Renewable Energy Production
Methane
Maryland
§10-720
Renewable Energy Production
Biomass
Maryland
§10-720
Renewable Energy Production
Various
Maryland
§9-203
Solar, Geothermal, And Energy Conservation Dev
Solar
Maryland
§9-203
Solar, Geothermal, And Energy Conservation Dev
Geothermal
Maryland
§9-203
Solar, Geothermal, And Energy Conservation Dev Energy Efficiency
Maryland
§7-242
Renewable Energy Systems
Geothermal
Maryland
§7-242
Renewable Energy Systems
Solar electric
Maryland
§7-242
Renewable Energy Systems
Solar Thermal
Maryland
§7-242
Renewable Energy Systems
Wind
Maryland
§9-1501
Renewable Energy And Energy-Efficiency System Energy Efficiency
Maryland
§9-1501
Renewable Energy And Energy-Efficiency System
Various
Maryland
§11-230
Geothermal, Solar And Wind Energy Equipment
Geothermal
Maryland
§11-230
Geothermal, Solar And Wind Energy Equipment
Solar
Maryland
§11-230
Geothermal, Solar And Wind Energy Equipment
Wind
Maryland
§8-240
Solar And Geothermal Heating And Cooling Syste
Solar
Maryland
§8-240
Solar And Geothermal Heating And Cooling Syste
Geothermal
Maryland
§10-726
Cellulosic Ethanol Technology Research And Dev
Ethanol
Maryland
§10-727
Biodiesel Heating Fuel
Biodiesel
Maryland
§10-722
Green Building
Solar electric
Maryland
§10-722
Green Building
Fuel cell
Maryland
§10-722
Green Building
Wind
Maryland
§10-722
Green Building
Energy Efficiency
Maryland
§9-242
LEED Silver Or Better Green Buildings
Energy Efficiency
Maryland
§11-207
Wood Heating Fuel
Biofuel
Maryland
§5A-303
LEED Gold Historical Buildings
Energy Efficiency
Maryland
§11-226
Energy-Efficient Equipment
Energy Efficiency
Maryland
§11-207(a)
Solar And Residential Wind Equipment
Solar
Maryland
§11-207(a)
Solar And Residential Wind Equipment
Wind
Maryland
H.B. 163 (2011) Electric Vehicle Recharging Equipment
Electric Vehicle
Maryland
§11-210(e)
Energy Star Windows and Doors Manufacturing E Energy Efficiency
Massachusetts State Tax Incentives for Renewable Energy and Green Building
Massachusetts
63 §38H
Solar Or Wind Powered Systems
Solar
Massachusetts
63 §38H
Solar Or Wind Powered Systems
Wind
Massachusetts
59 §5 (45, 45A) Renewable Energy Property
Solar
Massachusetts
59 §5 (45, 45A) Renewable Energy Property
Wind
Massachusetts
59 §5 (45, 45A) Renewable Energy Property
Hydroelectric
Massachusetts
62 § 2(a)(2)(G) Energy Conservation Or Alternative Energy Paten Energy Efficiency
Massachusetts
62 § 2(a)(2)(G) Energy Conservation Or Alternative Energy Paten
Various
Massachusetts
62 §6(d)
Renewable Energy Systems In Primary Residence
Solar
Massachusetts
62 §6(d)
Renewable Energy Systems In Primary Residence
Wind
Massachusetts
64H §6(dd)
Renewable Energy Equipment In Primary Residen
Solar
Massachusetts
64H §6(dd)
Renewable Energy Equipment In Primary Residen
Wind
Massachusetts
64H §6(dd)
Renewable Energy Equipment In Primary Residen
Geothermal
Massachusetts
64H §6(s)
Wind Turbine Equipment in Furnishing Electricity
Wind
Michigan State Tax Incentives for Renewable Energy and Green Building
Michigan
§207.821
Alternative Energy Research, Development, And M Alternative Fuel
Michigan
§207.821
Alternative Energy Research, Development, And M Electric Vehicle
Michigan
§207.821
Alternative Energy Research, Development, And M
Fuel cell
Michigan
§207.821
Alternative Energy Research, Development, And M Solar electric
Michigan
§207.821
Alternative Energy Research, Development, And M
Biomass
Michigan
§207.821
Alternative Energy Research, Development, And M Solar Thermal
Tax
Income
Income
Type
Credit
Credit
Taxpayer
Owner
Builder
Period (yrs
Amount
30%
$400-$800/home
Maximum
$500
-
Expiration
2015
2015
Sales
Income
Refund
Credit
Purchaser
Producer
-
100%
$0.05/gal
-
-
Income
Income
Income
Income
Income
Income
Income
Income
Property
Property
Property
Property
Property
Property
Property
Property
Property
Sales
Sales
Sales
Property
Property
Income
Income
Income
Income
Income
Income
Property
Sales
Income
Sales
Sales
Sales
Income
Sales
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Exemption
Exemption
Exemption
Exemption
Financing
Financing
Exemption
Exemption
Exemption
Exemption
Exemption
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Exemption
Credit
Exemption
Exemption
Exemption
Credit
Exemption
Producer
Producer
Producer
Producer
Producer
Producer
Producer
Producer
Owner
Owner
Owner
Owner
Owner
Owner
Owner
Owner
Owner
Purchaser
Purchaser
Purchaser
Owner
Owner
Researcher
Purchaser
Owner
Owner
Owner
Owner
Owner
Purchaser
Owner
Purchaser
Purchaser
Purchaser
Purchaser
Manufacturer
5
5
5
5
5
5
5
5
-
$0.0085/kWh
$0.0085/kWh
$0.0085/kWh
$0.0085/kWh
$0.0085/kWh
$0.0085/kWh
$0.0085/kWh
$0.0085/kWh
100%
100%
100%
100%
100%
100%
100%
Varies
Varies
100%
100%
100%
100%
100%
10%
$0.03/gal
20-25%
30%
25%
6-8%
100%
100%
25%
100%
100%
100%
20%
100%
$2.5 million
$2.5 million
$2.5 million
$2.5 million
$2.5 million
$2.5 million
$2.5 million
$2.5 million
$500
$3.00/w
$1,000/kw
$120/SF
$3 million
-
2015
2015
2015
2015
2015
2015
2015
2015
2016
2012
2011
2011
2011
2011
2014
2012
-
Income
Income
Property
Property
Property
Income
Income
Income
Income
Sales
Sales
Sales
Sales
Deduction
Deduction
Exemption
Exemption
Exemption
Deduction
Deduction
Credit
Credit
Exemption
Exemption
Exemption
Exemption
Owner
Owner
Owner
Owner
Owner
Owner
Owner
Owner
Owner
Purchaser
Purchaser
Purchaser
Purchaser
20
20
20
5
5
-
100%
100%
100%
100%
100%
100%
100%
15%
15%
100%
100%
100%
100%
$1,000
$1,000
-
-
Income
Income
Income
Income
Income
Income
Credit
Credit
Credit
Credit
Credit
Credit
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Manufacturer
-
[Repealed]
[Repealed]
[Repealed]
[Repealed]
[Repealed]
[Repealed]
[Repealed]
[Repealed]
[Repealed]
[Repealed]
[Repealed]
[Repealed]
[Repealed]
[Repealed]
[Repealed]
[Repealed]
[Repealed]
[Repealed]
Sec
26.01
26.01
26.01
26.01
26.01
26.02
26.03
26.03
26.03
26.03
26.03
26.03
26.04
26.04
26.04
26.04
26.04
26.04
26.04
26.04
26.04
26.04
26.05
26.06
26.07
26.08
26.09
26.10
28.00
28.01
28.02
28.03
28.04
28.04
28.04
28.04
28.05
28.05
28.05
28.05
28.06
28.06
28.06
28.06
28.07
28.08
33.00
33.01
33.01
33.01
33.01
33.01
33.01
33.01
33.02
33.02
33.02
34.00
34.01
34.02
34.02
34.02
34.02
Jurisdiction
Statute
Incentive Title
Technology
Michigan
§207.821
Alternative Energy Research, Development, And M
Wind
Michigan
§207.821
Alternative Energy Research, Development, And M Cogeneration
Michigan
§207.821
Alternative Energy Research, Development, And M
Methane
Michigan
§207.821
Alternative Energy Research, Development, And M Hydroelectric
Michigan
§207.821
Alternative Energy Research, Development, And M
Various
Michigan
§207.821
Alternative Energy Technology Businesses
Various
Michigan
§125.2681
Renewable Energy Renaissance Zones
Wind
Michigan
§125.2681
Renewable Energy Renaissance Zones
Solar
Michigan
§125.2681
Renewable Energy Renaissance Zones
Biomass
Michigan
§125.2681
Renewable Energy Renaissance Zones
Biodiesel
Michigan
§125.2681
Renewable Energy Renaissance Zones
Fuel cell
Michigan
§125.2681
Renewable Energy Renaissance Zones
Various
Michigan
§207.821
Alternative Energy Technology Manufacturing An
Fuel cell
Michigan
§207.821
Alternative Energy Technology Manufacturing An Solar electric
Michigan
§207.821
Alternative Energy Technology Manufacturing An Solar Thermal
Michigan
§207.821
Alternative Energy Technology Manufacturing An
Wind
Michigan
§207.821
Alternative Energy Technology Manufacturing An Cogeneration
Michigan
§207.821
Alternative Energy Technology Manufacturing An
Methane
Michigan
§207.821
Alternative Energy Technology Manufacturing An
Ethanol
Michigan
§207.821
Alternative Energy Technology Manufacturing An
Biodiesel
Michigan
§207.821
Alternative Energy Technology Manufacturing An
Biomass
Michigan
§207.821
Alternative Energy Technology Manufacturing An
Various
Michigan
§208.1430
Photovoltaic Energy Manufacturing Facilities
Solar electric
Michigan
Act 335 (2008) Biofuel Service Station Conversion
Biofuel
Michigan
§211.9(j)
Biomass Gasification And Methane Digester Prop
Biomass
Michigan
§208.1434(6)
Large Scale Battery Manufacturing Facilities
Fuel cell
Michigan
§206.253
Energy Efficient Home Improvements
Energy Efficiency
Michigan
§206.253(2)
Alternative Electric Supplied Utilities
Various
Mississippi State Tax Incentives for Renewable Energy and Green Building
Mississippi
§27-7-22.29
Alternative Energy Job Creation
Various
Mississippi
S.B. 3189 (2010) Solar Panel Manufacturers
Solar
Mississippi
S.B. 3189 (2010) Solar Panel Manufacturers
Solar
Mississippi
H.B. 1701 (2010) Clean Energy Manufacturing Facilities
Wind
Mississippi
H.B. 1701 (2010) Clean Energy Manufacturing Facilities
Biomass
Mississippi
H.B. 1701 (2010) Clean Energy Manufacturing Facilities
Solar
Mississippi
H.B. 1701 (2010) Clean Energy Manufacturing Facilities
Various
Mississippi
H.B. 1701 (2010) Clean Energy Manufacturing Facilities
Wind
Mississippi
H.B. 1701 (2010) Clean Energy Manufacturing Facilities
Biomass
Mississippi
H.B. 1701 (2010) Clean Energy Manufacturing Facilities
Solar
Mississippi
H.B. 1701 (2010) Clean Energy Manufacturing Facilities
Various
Mississippi
H.B. 1701 (2010) Clean Energy Manufacturing Facilities
Wind
Mississippi
H.B. 1701 (2010) Clean Energy Manufacturing Facilities
Biomass
Mississippi
H.B. 1701 (2010) Clean Energy Manufacturing Facilities
Solar
Mississippi
H.B. 1701 (2010) Clean Energy Manufacturing Facilities
Various
Mississippi
§27-7-22.35
Biomass Fuel Production Facilities
Biomass
Mississippi
H.B. 8b (2010) Biomass Fuel Production Facilities
Biomass
New Hampshire State Tax Incentives for Renewable Energy and Green Building
New Hampshire
72 §73
Renewable Generation Facilities
Wind
New Hampshire
72 §73
Renewable Generation Facilities
Geothermal
New Hampshire
72 §73
Renewable Generation Facilities
Biomass
New Hampshire
72 §73
Renewable Generation Facilities
Methane
New Hampshire
72 §73
Renewable Generation Facilities
Marine
New Hampshire
72 §73
Renewable Generation Facilities
Solar Thermal
New Hampshire
72 §73
Renewable Generation Facilities
Various
New Hampshire
72 §61
Residential Renewable-Energy Systems
Solar
New Hampshire
72 §61
Residential Renewable-Energy Systems
Wind
New Hampshire
72 §61
Residential Renewable-Energy Systems
Biofuel
New Jersey State Tax Incentives for Renewable Energy and Green Building
New Jersey
§54:10A
Alternative Energy Technology Company
Various
New Jersey
§54:4-3.113
Renewable Energy Systems
Solar electric
New Jersey
§54:4-3.113
Renewable Energy Systems
Wind
New Jersey
§54:4-3.113
Renewable Energy Systems
Fuel cell
New Jersey
§54:4-3.113
Renewable Energy Systems
Biomass
Tax
Income
Income
Income
Income
Income
Payroll
Varies
Varies
Varies
Varies
Varies
Varies
Property
Property
Property
Property
Property
Property
Property
Property
Property
Property
Income
Income
Property
Income
Income
Income
Type
Credit
Credit
Credit
Credit
Credit
Credit
Abatement
Abatement
Abatement
Abatement
Abatement
Abatement
Exemption
Exemption
Exemption
Exemption
Exemption
Exemption
Exemption
Exemption
Exemption
Exemption
Credit
Credit
Exemption
Credit
Credit
Credit
Taxpayer
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Employer
Owner
Owner
Owner
Owner
Owner
Owner
Owner
Owner
Owner
Owner
Owner
Owner
Owner
Owner
Owner
Owner
Manufacturer
Owner
Owner
Manufacturer
Owner
Payor
Period (yrs
15
15
15
15
15
15
2
-
Amount
[Repealed]
[Repealed]
[Repealed]
[Repealed]
[Repealed]
[Repealed]
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
[Repealed]
30%
100%
[Repealed]
10%
20-25%
Maximum
[Repealed]
[Repealed]
[Repealed]
[Repealed]
[Repealed]
[Repealed]
[Repealed]
$20,000
[Repealed]
$75
$9.00/meter
Expiration
[Repealed]
[Repealed]
[Repealed]
[Repealed]
[Repealed]
[Repealed]
2012
2012
2012
2012
2012
2012
2012
2012
2012
2012
[Repealed]
2012
[Repealed]
2011
2011
Income
Sales
Franchise
Income
Income
Income
Income
Franchise
Franchise
Franchise
Franchise
Sales
Sales
Sales
Sales
Income
Sales
Credit
Exemption
Exemption
Exemption
Exemption
Exemption
Exemption
Exemption
Exemption
Exemption
Exemption
Exemption
Exemption
Exemption
Exemption
Credit
Exemption
Employer
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Investor
Investor
20
10
10
10
10
10
10
10
10
10
10
10
10
-
$1,000/emp
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
5%
100%
100% liab
-
-
Property
Property
Property
Property
Property
Property
Property
Property
Property
Property
Abatement
Abatement
Abatement
Abatement
Abatement
Abatement
Abatement
Exemption
Exemption
Exemption
Owner
Owner
Owner
Owner
Owner
Owner
Owner
Owner
Owner
Owner
5
5
5
5
5
5
5
-
Varies
Varies
Varies
Varies
Varies
Varies
Varies
-
-
-
Income
Property
Property
Property
Property
Credit
Exemption
Exemption
Exemption
Exemption
Investor
Owner
Owner
Owner
Owner
3
-
30%
100%
100%
100%
100%
$500,000
-
-
Sec
Jurisdiction
Statute
Incentive Title
34.02
New Jersey
§54:4-3.113
Renewable Energy Systems
34.02
New Jersey
§54:4-3.113
Renewable Energy Systems
34.02
New Jersey
§54:4-3.113
Renewable Energy Systems
34.02
New Jersey
§54:4-3.113
Renewable Energy Systems
34.02
New Jersey
§54:4-3.113
Renewable Energy Systems
34.02
New Jersey
§54:4-3.113
Renewable Energy Systems
34.02
New Jersey
§54:4-3.113
Renewable Energy Systems
34.03
New Jersey
§54:32B-8.3
Solar Energy Equipment
34.04
New Jersey
§54:32B
Cogeneration Facility Equipment
34.05
New Jersey
S.B. 2036 (2010) Wind Energy Facilities
36.00 New York State Tax Incentives for Renewable Energy and Green Building
36.01
New York
§14
Clean Energy Enterprises
36.01
New York
§14
Clean Energy Enterprises
36.01
New York
§14
Clean Energy Enterprises
36.01
New York
§14
Clean Energy Enterprises
36.01
New York
§14
Clean Energy Enterprises
36.01
New York
§14
Clean Energy Enterprises
36.01
New York
§14
Clean Energy Enterprises
36.02
New York
§14
Clean Energy Enterprises
36.02
New York
§14
Clean Energy Enterprises
36.02
New York
§14
Clean Energy Enterprises
36.02
New York
§14
Clean Energy Enterprises
36.02
New York
§14
Clean Energy Enterprises
36.02
New York
§14
Clean Energy Enterprises
36.02
New York
§14
Clean Energy Enterprises
36.03
New York
§499-aaaa
Photovoltaic Equipment Expenditures Installed In
36.04
New York
4 §487
Solar, Wind & Biomass Energy Systems
36.04
New York
4 §487
Solar, Wind & Biomass Energy Systems
36.04
New York
4 §487
Solar, Wind & Biomass Energy Systems
36.05
New York
§28(a)
Biofuel Production
36.06
New York
§210(24)
Alternative Fuel Refueling Property
36.06
New York
§210(24)
Alternative Fuel Refueling Property
36.07
New York
§487-a
Energy Conservation Improvements
36.08
New York
1 §19
Green Building
36.09
New York
22 §210.39
Clean Heating Fuel Purchase
36.10
New York
22 §606(g-1)
Solar And Fuel Cell System Equipment
36.10
New York
22 §606(g-1)
Solar And Fuel Cell System Equipment
36.11
New York
28 §1115 (ee) Residential Solar-Energy Systems Equipment
36.12
New York
28 § 1115 (a)(1) Wind Farm Components
36.13
New York
22 §210.37
Fuel Cell Electric Generating Equipment
36.14
New York
§470
Green Building Property Tax Exemption
36.15
New York
§1115(42)
Alternative Fuel Sales
37.00 North Carolina State Tax Incentives for Renewable Energy and Green Building
37.01 North Carolina
§105-129.15
Renewable Energy Systems
37.01 North Carolina
§105-129.15
Renewable Energy Systems
37.01 North Carolina
§105-129.15
Renewable Energy Systems
37.01 North Carolina
§105-129.15
Renewable Energy Systems
37.01 North Carolina
§105-129.15
Renewable Energy Systems
37.01 North Carolina
§105-129.15
Renewable Energy Systems
37.02 North Carolina
§105-275(45) Solar Energy Electric System
37.03 North Carolina
§105-277
Active Solar Heating And Cooling Systems
37.04 North Carolina
§105-129.16D Renewable Fuel Facilities
37.05 North Carolina
§105-129.16F Biodiesel Production
37.06 North Carolina
§105-164.13D Residential Energy-Efficient Appliances
37.07 North Carolina
§105-130.28
Renewable Energy Property Manufacturing Facilit
37.07 North Carolina
§105-130.28
Renewable Energy Property Manufacturing Facilit
37.07 North Carolina
§105-130.28
Renewable Energy Property Manufacturing Facilit
39.00 Ohio State Tax Incentives for Renewable Energy and Green Building
39.01
Ohio
§3706
Air Quality Renewable, Energy Efficiency Or Con
39.01
Ohio
§3706
Air Quality Renewable, Energy Efficiency Or Con
39.01
Ohio
§3706
Air Quality Renewable, Energy Efficiency Or Con
39.01
Ohio
§3706
Air Quality Renewable, Energy Efficiency Or Con
39.02
Ohio
H.B. 1.(2009) Special Energy Improvement Districts
Technology
Geothermal
Methane
Hydroelectric
Cogeneration
Marine
Solar Thermal
Various
Solar
Cogeneration
Wind
Tax
Property
Property
Property
Property
Property
Property
Property
Sales
Sales
Income
Type
Exemption
Exemption
Exemption
Exemption
Exemption
Exemption
Exemption
Exemption
Exemption
Credit
Taxpayer
Owner
Owner
Owner
Owner
Owner
Owner
Owner
Purchaser
Purchaser
Investor
Period (yrs
10
Amount
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Maximum
-
Expiration
2015
Solar Thermal
Solar electric
Wind
Geothermal
Methane
Fuel cell
Various
Solar Thermal
Solar electric
Wind
Geothermal
Methane
Fuel cell
Various
Solar electric
Solar
Wind
Biomass
Biofuel
Alternative Fuel
Electric Vehicle
Energy Efficiency
Energy Efficiency
Biodiesel
Solar
Fuel cell
Solar
Wind
Fuel cell
Energy Efficiency
Alternative Fuel
Income
Income
Income
Income
Income
Income
Income
Property
Property
Property
Property
Property
Property
Property
Property
Property
Property
Property
Income
Income
Income
Property
Income
Income
Income
Income
Sales
Sales
Income
Property
Sales
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Abatement
Exemption
Exemption
Exemption
Credit
Credit
Credit
Exemption
Credit
Credit
Credit
Credit
Exemption
Exemption
Credit
Exemption
Exemption
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Owner
Owner
Owner
Owner
Producer
Owner
Owner
Owner
Owner
Purchaser
Owner, Lessee
Owner, Lessee
Purchaser
Purchaser
Purchaser
Owner
Purchaser
10
10
10
10
10
10
10
10
10
10
10
10
10
10
4
15
15
15
4
5
10
-
Formula
Formula
Formula
Formula
Formula
Formula
Formula
Formula
Formula
Formula
Formula
Formula
Formula
Formula
35%
100%
100%
100%
$0.15/gal
50%
50%
100%
5-100%
$0.01/gal/%
25%
20%
100%
100%
100%
0-100%
20-100%
$62,500
$2.5 million
$2 million/build
$0.20/gal
$5,000
$1,500
$1,500
-
2010
2010
2010
2010
2010
2010
2010
2010
2010
2010
2010
2010
2010
2010
2012
2014
2014
2014
2012
2010
2010
2010
2016
2014
Biomass
Hydroelectric
Solar electric
Solar Thermal
Wind
Geothermal
Solar electric
Solar Thermal
Alternative Fuel
Biodiesel
Energy Efficiency
Solar
Wind
Various
Income
Income
Income
Income
Income
Income
Property
Property
Income
Income
Sales
Income
Income
Income
Credit
Credit
Credit
Credit
Credit
Credit
Assessment
Abatement
Credit
Credit
Exemption
Credit
Credit
Credit
Owner
Owner
Owner
Owner
Owner
Owner
Owner
Owner
Owner
Producer
Purchaser
Manufacturer
Manufacturer
Manufacturer
5
5
5
5
5
5
3-7
Annual
5
5
5
35%
35%
35%
35%
35%
35%
80%
100%
25-35%
100%
100%
25%
25%
25%
$10,500
$10,500
$10,500
$1,400
$10,500
$8,400
$500,000
-
2015
2015
2015
2015
2015
2015
2012
2012
2013
2013
2013
Energy Efficiency
Biomass
Ethanol
Various
Solar
Property
Property
Property
Property
Property
Exemption
Exemption
Exemption
Exemption
Financing
Owner
Owner
Owner
Owner
Owner
-
100%
100%
100%
100%
Varies
-
-
Sec
Jurisdiction
Statute
Incentive Title
39.03
Ohio
§5709.53
Solar, Wind, And Hydrothermal Energy Systems
39.03
Ohio
§5709.53
Solar, Wind, And Hydrothermal Energy Systems
39.03
Ohio
§5709.53
Solar, Wind, And Hydrothermal Energy Systems
39.04
Ohio
§5733.46
Ethanol Plant Investment
39.05
Ohio
§5709.20
Energy Conversion And Thermal Efficiency Impro
39.05
Ohio
§5709.20
Energy Conversion And Thermal Efficiency Impro
39.05
Ohio
§5709.20
Energy Conversion And Thermal Efficiency Impro
39.05
Ohio
§5709.20
Energy Conversion And Thermal Efficiency Impro
39.05
Ohio
§5709.20
Energy Conversion And Thermal Efficiency Impro
39.05
Ohio
§5709.20
Energy Conversion And Thermal Efficiency Impro
39.05
Ohio
§5709.20
Energy Conversion And Thermal Efficiency Impro
39.06
Ohio
§5747.77
Alternative Fuel Retailers
39.07
Ohio
§5727.75
Qualified Energy Projects
39.07
Ohio
§5727.75
Qualified Energy Projects
39.07
Ohio
§5727.75
Qualified Energy Projects
39.07
Ohio
§5727.75
Qualified Energy Projects
39.07
Ohio
§5727.75
Qualified Energy Projects
39.07
Ohio
§5727.75
Qualified Energy Projects
39.07
Ohio
§5727.75
Qualified Energy Projects
39.07
Ohio
§5727.75
Qualified Energy Projects
39.07
Ohio
§5727.75
Qualified Energy Projects
42.00 Pennsylvania State Tax Incentives for Renewable Energy and Green Building
42.01 Pennsylvania
73 §1649.70
Alternative Energy Production
42.01 Pennsylvania
73 §1649.70
Alternative Energy Production
42.01 Pennsylvania
73 §1649.70
Alternative Energy Production
42.01 Pennsylvania
73 §1649.70
Alternative Energy Production
42.01 Pennsylvania
73 §1649.70
Alternative Energy Production
42.01 Pennsylvania
73 §1649.70
Alternative Energy Production
42.01 Pennsylvania
73 §1649.70
Alternative Energy Production
42.01 Pennsylvania
73 §1649.70
Alternative Energy Production
42.01 Pennsylvania
73 §1649.70
Alternative Energy Production
42.01 Pennsylvania
73 §1649.70
Alternative Energy Production
42.02 Pennsylvania
72 §5453.201 Commercial Wind Farms
44.00 Rhode Island State Tax Incentives for Renewable Energy and Green Building
44.01 Rhode Island
§44-18-30(57) Renewable Energy Systems And Equipment
44.01 Rhode Island
§44-18-30(57) Renewable Energy Systems And Equipment
44.01 Rhode Island
§44-18-30(57) Renewable Energy Systems And Equipment
44.02 Rhode Island
§44-3-21
Renewable-Energy Systems
44.02 Rhode Island
§44-3-21
Renewable-Energy Systems
44.02 Rhode Island
§44-3-21
Renewable-Energy Systems
44.03 Rhode Island
§44-30-22
Hydroelectric Power Installation
44.04 Rhode Island
§44-57-1
Residential Renewable Energy Systems
44.04 Rhode Island
§44-57-1
Residential Renewable Energy Systems
44.04 Rhode Island
§44-57-1
Residential Renewable Energy Systems
44.04 Rhode Island
§44-57-1
Residential Renewable Energy Systems
44.05 Rhode Island
§44-57-4(a)(6) Residential Solar Property
45.00 South Carolina State Tax Incentives for Renewable Energy and Green Building
45.01 South Carolina
§12-6-3587
Solar Energy Or Small Hydropower Systems
45.01 South Carolina
§12-6-3587
Solar Energy Or Small Hydropower Systems
45.02 South Carolina
§12-6-3620
Biomass Energy Systems
45.03 South Carolina §12-6-3600(A)(1) Biodiesel Motor Fuel Production
45.04 South Carolina
§12-6-3631(A) Ethanol And Biodiesel Research
45.05 South Carolina
§12-6-3376
Plug-In Hybrid Vehicles
45.06 South Carolina
§12-6-3610
Renewable Fuel Distribution, Processing And Disp
45.07 South Carolina §12-36-2120(71) Hydrogen And Fuel Cell Equipment
45.08 South Carolina
§48-52-870
Energy Efficient Manufactured Homes
45.09 South Carolina
§12-36-2110
Energy Efficient Manufactured Homes
45.10 South Carolina
§12-6-3588
Plant And Equipment For Renewable Energy Man
45.10 South Carolina
§12-6-3588
Plant And Equipment For Renewable Energy Man
45.10 South Carolina
§12-6-3588
Plant And Equipment For Renewable Energy Man
45.10 South Carolina
§12-6-3588
Plant And Equipment For Renewable Energy Man
45.11 South Carolina
§12-6-3377
Alternative Motor Vehicles
45.11 South Carolina
§12-6-3377
Alternative Motor Vehicles
Technology
Solar
Wind
Geothermal
Ethanol
Solar Thermal
Solar electric
Wind
Biomass
Methane
Cogeneration
Various
Biodiesel
Solar electric
Solar Thermal
Wind
Hydroelectric
Geothermal
Methane
Biomass
Fuel cell
Various
Tax
Property
Property
Property
Income
Property
Property
Property
Property
Property
Property
Property
Income
Property
Property
Property
Property
Property
Property
Property
Property
Property
Type
Exemption
Exemption
Exemption
Credit
Exemption
Exemption
Exemption
Exemption
Exemption
Exemption
Exemption
Credit
Exemption
Exemption
Exemption
Exemption
Exemption
Exemption
Exemption
Exemption
Exemption
Taxpayer
Owner
Owner
Owner
Owner
Owner
Owner
Owner
Owner
Owner
Owner
Owner
Seller
Owner
Owner
Owner
Owner
Owner
Owner
Owner
Owner
Owner
Period (yrs
-
Amount
100%
100%
100%
50%
100%
100%
100%
100%
100%
100%
100%
$0.035-0.15
100%
100%
100%
100%
100%
100%
100%
100%
100%
Maximum
$5,000
-
Expiration
2012
2011
2011
2011
2011
2011
2011
2011
2011
2011
2011
Geothermal
Wind
Solar
Cogeneration
Hydroelectric
Methane
Fuel cell
Alternative Fuel
Biomass
Various
Wind
Income
Income
Income
Income
Income
Income
Income
Income
Income
Income
Property
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Exemption
Producer
Producer
Producer
Producer
Producer
Producer
Producer
Producer
Producer
Producer
Owner
-
15%
15%
15%
15%
15%
15%
15%
15%
15%
15%
100%
$1 million
$1 million
$1 million
$1 million
$1 million
$1 million
$1 million
$1 million
$1 million
$1 million
-
2016
2016
2016
2016
2016
2016
2016
2016
2016
2016
-
Solar
Wind
Geothermal
Solar
Wind
Geothermal
Hydroelectric
Solar electric
Solar Thermal
Wind
Geothermal
Solar
Sales
Sales
Sales
Property
Property
Property
Income
Income
Income
Income
Income
Property
Exemption
Exemption
Exemption
Exemption
Exemption
Exemption
Credit
Credit
Credit
Credit
Credit
Exemption
Purchaser
Purchaser
Purchaser
Owner
Owner
Owner
Owner
Owner
Owner
Owner
Owner
Owner
-
100%
100%
100%
100%
100%
100%
10%
[Repealed]
[Repealed]
[Repealed]
[Repealed]
100%
$50,000
[Repealed]
[Repealed]
[Repealed]
[Repealed]
-
[Repealed]
[Repealed]
[Repealed]
[Repealed]
-
Solar
Hydroelectric
Biomass
Biodiesel
Biodiesel
Electric Vehicle
Alternative Fuel
Fuel cell
Energy Efficiency
Energy Efficiency
Wind
Solar
Geothermal
Various
Alternative Fuel
Electric Vehicle
Income
Income
Income
Income
Income
Income
Income
Sales
Income
Sales
Income
Income
Income
Income
Income
Income
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Exemption
Credit
Exemption
Credit
Credit
Credit
Credit
Credit
Credit
Owner
Owner
Owner
Producer
Researcher
Purchaser
Owner
Purchaser
Purchaser
Purchaser
Owner
Owner
Owner
Owner
Owner
Owner
5
3
-
25%
25%
25%
$0.20-$0.30/gal
25%
$2,000
25%
100%
$750
100%
10%
10%
10%
10%
20%
20%
$650,000
3 million gal
$162,500
$500,000
$500,000
$500,000
$500,000
-
2016
2011
2016
2019
2019
2015
2015
2015
2015
-
Sec
Jurisdiction
Statute
Incentive Title
45.11 South Carolina
§12-6-3377
Alternative Motor Vehicles
47.00 Tennessee State Tax Incentives for Renewable Energy and Green Building
47.01
Tennessee
§67-6-232
Manufacturers Of Clean Energy Technologies
47.01
Tennessee
§67-6-232
Manufacturers Of Clean Energy Technologies
47.01
Tennessee
§67-6-232
Manufacturers Of Clean Energy Technologies
47.01
Tennessee
§67-6-232
Manufacturers Of Clean Energy Technologies
47.01
Tennessee
§67-6-232
Manufacturers Of Clean Energy Technologies
47.01
Tennessee
§67-6-232
Manufacturers Of Clean Energy Technologies
47.01
Tennessee
§67-6-232
Manufacturers Of Clean Energy Technologies
47.01
Tennessee
§67-6-232
Manufacturers Of Clean Energy Technologies
47.02
Tennessee
§67-4-2109(n) Green Energy Supply Chain Manufacturers
47.03
Tennessee
§67-5-601
Green Energy Production Facilities
47.03
Tennessee
§67-5-601
Green Energy Production Facilities
47.03
Tennessee
§67-5-601
Green Energy Production Facilities
47.03
Tennessee
§67-5-601
Green Energy Production Facilities
50.00 Vermont State Tax Incentives for Renewable Energy and Green Building
50.01
Vermont
32 §3845
Alternate Energy Source Systems
50.01
Vermont
32 §3845
Alternate Energy Source Systems
50.01
Vermont
32 §3845
Alternate Energy Source Systems
50.02
Vermont
H.B. 446 (2009). Clean Energy Assessment Districts
50.02
Vermont
H.B. 446 (2009). Clean Energy Assessment Districts
50.02
Vermont
H.B. 446 (2009). Clean Energy Assessment Districts
50.02
Vermont
H.B. 446 (2009). Clean Energy Assessment Districts
50.02
Vermont
H.B. 446 (2009). Clean Energy Assessment Districts
50.02
Vermont
H.B. 446 (2009). Clean Energy Assessment Districts
50.02
Vermont
H.B. 446 (2009). Clean Energy Assessment Districts
50.02
Vermont
H.B. 446 (2009). Clean Energy Assessment Districts
50.02
Vermont
H.B. 446 (2009). Clean Energy Assessment Districts
50.03
Vermont
32 §9741(46
Renewable-Energy Systems
50.03
Vermont
32 §9741(46
Renewable-Energy Systems
50.03
Vermont
32 §9741(46
Renewable-Energy Systems
50.03
Vermont
32 §9741(46
Renewable-Energy Systems
50.04
Vermont
32 §5930z
Solar Energy Equipment On Business Properties
51.00 Virginia State Tax Incentives for Renewable Energy and Green Building
51.01
Virginia
§15.2-958.3
Clean Energy Assessment Districts
51.01
Virginia
§15.2-958.3
Clean Energy Assessment Districts
51.02
Virginia
§58.1-3661
Solar Energy Property
51.03
Virginia
§58.1-439.12:02. Biodiesel And Green Diesel Production
51.04
Virginia
§58.1-438.1
Clean-Fuel Vehicle And Refueling Property
51.04
Virginia
§58.1-438.1
Clean-Fuel Vehicle And Refueling Property
51.05
Virginia
§58.1-439.1
Clean Fuel Vehicle Job Creation
51.05
Virginia
§58.1-439.1
Clean Fuel Vehicle Job Creation
51.06
Virginia
§58.1-3221.2
Energy Efficient Buildings
51.07
Virginia
§58.1-609.1
Energy-Efficient Products
51.08
Virginia
§58.1-322(D)(12). Sales And Use Tax Paid On Energy Conservation
51.09
Virginia
§58.1-3221.4
Renewable Energy Manufacturing
51.09
Virginia
§58.1-3221.4
Renewable Energy Manufacturing
51.09
Virginia
§58.1-3221.4
Renewable Energy Manufacturing
51.09
Virginia
§58.1-3221.4
Renewable Energy Manufacturing
51.09
Virginia
§58.1-3221.4
Renewable Energy Manufacturing
51.09
Virginia
§58.1-3221.4
Renewable Energy Manufacturing
51.09
Virginia
§58.1-3221.4
Renewable Energy Manufacturing
51.09
Virginia
§58.1-3221.4
Renewable Energy Manufacturing
51.09
Virginia
§58.1-3221.4
Renewable Energy Manufacturing
51.10
Virginia
§58.1-439.12:03 Green Job Creation
51.10
Virginia
§58.1-439.12:03 Green Job Creation
51.10
Virginia
§58.1-439.12:03 Green Job Creation
51.10
Virginia
§58.1-439.12:03 Green Job Creation
51.10
Virginia
§58.1-439.12:03 Green Job Creation
51.10
Virginia
§58.1-439.12:03 Green Job Creation
51.10
Virginia
§58.1-439.12:03 Green Job Creation
51.10
Virginia
§58.1-439.12:03 Green Job Creation
51.10
Virginia
§58.1-439.12:03 Green Job Creation
Technology
Fuel cell
Tax
Income
Type
Credit
Taxpayer
Owner
Period (yrs
-
Amount
20%
Maximum
-
Expiration
-
Biomass
Geothermal
Fuel cell
Hydroelectric
Methane
Solar
Wind
Various
Various
Wind
Solar
Geothermal
Fuel cell
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Sales
Income
Property
Property
Property
Property
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Exemption
Exemption
Exemption
Exemption
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Owner
Owner
Owner
Owner
8
8
8
8
8
8
8
8
-
99.50%
99.50%
99.50%
99.50%
99.50%
99.50%
99.50%
99.50%
100% incr charge
67%
67%
67%
67%
-
2028
-
Wind
Solar
Methane
Solar Thermal
Solar electric
Methane
Wind
Biomass
Hydroelectric
Geothermal
Fuel cell
Various
Cogeneration
Solar Thermal
Methane
Various
Solar
Property
Property
Property
Property
Property
Property
Property
Property
Property
Property
Property
Property
Sales
Sales
Sales
Sales
Income
Exemption
Exemption
Exemption
Financing
Financing
Financing
Financing
Financing
Financing
Financing
Financing
Financing
Exemption
Exemption
Exemption
Exemption
Credit
Owner
Owner
Owner
Owner
Owner
Owner
Owner
Owner
Owner
Owner
Owner
Owner
Purchaser
Purchaser
Purchaser
Purchaser
Owner
-
100%
100%
100%
Varies
Varies
Varies
Varies
Varies
Varies
Varies
Varies
Varies
100%
100%
100%
100%
30%
-
2016
Energy Efficiency
Various
Solar
Biodiesel
Electric Vehicle
Alternative Fuel
Alternative Fuel
Electric Vehicle
Energy Efficiency
Energy Efficiency
Energy Efficiency
Solar
Wind
Hydroelectric
Biomass
Cogeneration
Methane
Marine
Geothermal
Various
Fuel cell
Methane
Geothermal
Solar
Hydroelectric
Wind
Biomass
Biofuel
Various
Property
Property
Property
Income
Income
Income
Income
Income
Property
Sales
Income
Property
Property
Property
Property
Property
Property
Property
Property
Property
Income
Income
Income
Income
Income
Income
Income
Income
Income
Financing
Financing
Exemption
Credit
Credit
Credit
Credit
Credit
Assessment
Exemption
Deduction
Assessment
Assessment
Assessment
Assessment
Assessment
Assessment
Assessment
Assessment
Assessment
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Credit
Owner
Owner
Owner
Producer
Purchaser
Purchaser
Manufacturer
Manufacturer
Owner
Purchaser
Purchaser
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Manufacturer
Employer
Employer
Employer
Employer
Employer
Employer
Employer
Employer
Employer
5
3
3
3
Annual
5
5
5
5
5
5
5
5
5
Varies
Varies
100%
$0.01/gal
10%
10%
$700/job
$700/job
Varies
100%
20%
Varies
Varies
Varies
Varies
Varies
Varies
Varies
Varies
Varies
$500/job
$500/job
$500/job
$500/job
$500/job
$500/job
$500/job
$500/job
$500/job
$5,000
$500
$175,000
$175,000
$175,000
$175,000
$175,000
$175,000
$175,000
$175,000
$175,000
2012
2014
2014
2014
2014
2014
2014
2014
2014
2014
Sec
Jurisdiction
Statute
Incentive Title
Technology
54.00 West Virginia State Tax Incentives for Renewable Energy and Green Building
54.01 West Virginia
§11-13-2o
Wind Energy Generation
Wind
54.02 West Virginia
§11-6A-5a
Wind Energy Systems
Wind
54.03 West Virginia §11-15-9k(a)(1)(A) Energy-Efficient Products
Energy Efficiency
54.04 West Virginia
HB 2535 (2009) Residential Solar Energy Installations
Solar
54.05 West Virginia
§11-6d-1
Alternative Fuel Vehicles and Refueling Infrastruc Alternative Fuel
54.05 West Virginia
§11-6d-1
Alternative Fuel Vehicles and Refueling Infrastruc Alternative Fuel
55.00 Wisconsin State Tax Incentives for Renewable Energy and Green Building
55.01
Wisconsin
§70.111(18)
Solar-Energy System Or A Wind-Energy Systems
Solar
Tax
Type
Taxpayer
Period (yrs
Amount
Maximum
Expiration
Business
Property
Sales
Income
Income
Income
Abatement
Assessment
Exemption
Credit
Credit
Credit
Owner
Utility
Purchaser
Owner
Owner
Owner
Annual
-
70%
25%
100%
30%
35%
20%
$2,000
$7,500-25,000/v
$400,000
2010
2013
2017
2017
Property
Exemption
Owner
-
100%
-
-
00.
Federal Tax Incentives for Renewable Energy and
Green Building
00.01
Federal business income tax credit for renewable
electricity production
A. GENERAL DESCRIPTION. The Federal Internal Revenue
Code provides a business income tax credit in the amount of
$0.023 (2013) per kilowatt hour of electricity produced from
qualifying renewable resources during a ten-year period. IRC
§45; Notice 98-27, 1998-18 IRB 14; Notice 97-30, 1997-1 CB
416; Notice 96-25, 1996-1 CB 375; Rev. Proc. 2007-65;
Announcement 2009-69; INFO 2010-0025; INFO 2010-0037;
Notice 2010-37; Notice 2011-40; Notice 2012-35; Notice
2013-29; Notice 2013-33; PLR 201308021.
B. ELIGIBLE TAXPAYERS.
The tax credit is available to
Taxpayers producing electricity from qualifying renewable
resources and selling the electricity produced to an unrelated
person.
C. QUALIFYING ACTIVITY.
Taxpayer must produce
electricity from qualifying renewable resources and sell the
electricity produced to an unrelated person. Qualifying energy
resources are wind, closed-loop biomass, open-loop biomass,
geothermal energy, solar energy, small irrigation power,
municipal solid waste, hydropower, marine and hydrokinetic
renewables.
1.
2.
3.
4.
Qualifying closed-loop biomass is any organic
material from a plant that is planted exclusively for
purposes of being used at a qualifying facility to
produce electricity.
Qualifying closed-loop biomass facilities may
include facilities modified to use closed-loop
biomass to co-fire with coal, with other biomass, or
with both, but only if the modification is approved
under the Biomass Power for Rural Development
Programs or is part of a pilot project of the
Commodity Credit Corporation.
Qualifying open-loop biomass is any agricultural
livestock waste nutrients or any solid, nonhazardous,
cellulosic waste material or any lignin material that
is derived from: (1) any of the following forestrelated resources: mill and harvesting residues,
precommercial thinnings, slash, and brush; (2) solid
wood waste materials, including waste pallets,
crates, dunnage, manufacturing and construction
wood wastes (other than pressure-treated,
chemically-treated, or painted wood wastes), and
landscape or right-of-way tree trimmings, or (3)
agriculture sources, including orchard tree crops,
vineyard, grain, legumes, sugar, and other crop byproducts or residues.
Qualifying open-loop biomass does not include
municipal solid waste, gas derived from the
biodegradation of solid waste, or paper that is
commonly recycled.
5. Qualifying geothermal energy is energy derived
from a geothermal deposit or reservoir consisting of
natural heat that is stored in rocks or in an aqueous
liquid or vapor (whether or not under pressure).
6. Qualifying small irrigation power is power
generated without any dam or impoundment of
water through an irrigation system canal or ditch,
with the nameplate capacity of more than 150
kilowatts and less than 5 megawatts.
7. Qualifying municipal solid waste facilities include
landfill gas facilities and trash combustion facilities,
and does not include paper which is commonly
recycled and which has been segregated from other
solid waste.
8. Qualifying hydropower production is incremental
hydropower production at any hydroelectric dam
that was placed in service before Aug. 9, 2005, or
the
hydropower
production
from
any
nonhydroelectric dam. Incremental hydropower
production for any tax year is equal to the
percentage of average annual hydropower
production at a facility that is attributable to
efficiency improvements or additions of capacity
placed in service after Aug. 8, 2005 determined by
using the same water flow information used to
determine an historic average annual hydropower
production baseline for that facility. Incremental
hydropower production does not include any
operational changes at the facility not directly
associated with the efficiency improvements or
additions of capacity.
9. Qualifying hydropower production must be certified
by the Federal Energy Regulatory Commission.
10. Qualifying marine and hydrokinetic energy is energy
derived from waves, tides, and currents in oceans,
estuaries and tidal areas; free flowing water in
rivers, lakes and streams; free flowing water in an
irrigation system, canal or other man-made channel,
including projects that use non-mechanical
structures to accelerate the flow of water for electric
power production purposes; or differentials in ocean
temperature (ocean thermal energy conversion).
11. Qualifying marine and hydrokinetic energy does not
include any energy that is derived from any source
that uses a dam, diversionary structure or
impoundment for electric power production
purposes.
D. INCENTIVE AMOUNTS. The tax credit amount is $0.023
(2013) per kilowatt hour (KWH) of electricity produced and
sold to an unrelated person.
1.
The tax credit amount is reduced by the lesser of
50% or the ratio of government subsidies received
for the tax year to the aggregate additions to the
capital account attributable to the project for the tax
year and all earlier tax years. Government subsidies
2.
include: (1) governmental grants received for the
project; (2) proceeds from tax-exempt state or local
government bonds used to finance the project; (3)
directly and indirectly provided subsidized energy
financing under a federal, state or local program in
connection with the project; and (4) any other credit
allowable with respect to any property that is part of
the project.
00.02
E. INCENTIVE LIMITS. The tax credit amount is reduced by
an amount determined by dividing the excess of the reference
price for the calendar year of sale over $0.08 per KWH by
$0.0453 (2013). Reference price is the annual average
contract price per KWH of electricity generated from the same
qualifying energy resource and sold in the U.S. in the previous
year.
F. INCENTIVE TIMEFRAME. The tax credit is available for a
10-year period beginning on the placed-in-service date of the
qualifying facility.
1.
2.
3.
4.
5.
6.
7.
8.
9.
The tax credit for qualifying closed-loop biomass
facilities expires December 31, 2013. Qualifying
closed-loop biomass facilities must begin
construction on or before December 31, 2013
The tax credit for qualifying open-loop biomass
facilities expires December 31, 2013. Qualifying
open-loop biomass facilities must begin construction
on or before December 31, 2013
The tax credit for qualifying wind facilities expires
December 31, 2013. Qualifying wind facilities must
begin construction on or before December 31, 2013.
The tax credit for qualifying landfill gas facilities
expires December 31, 2013. Qualifying landfill gas
facilities must begin construction on or before
December 31, 2013.
The tax credit for qualifying geothermal energy
facilities expires December 31, 2013. Qualifying
geothermal facilities must begin construction on or
before December 31, 2013.
The tax credit for qualifying solar energy facilities
expired December 31, 2005.
The tax credit for qualifying small irrigation
facilities expired October 2, 2008.
The tax credit for qualifying hydropower facilities
expires December 31, 2013. Qualifying hydropower
facilities must begin construction on or before
December 31, 2013.
The tax credit for qualifying marine and
hydrokinetic energy facilities expires December 31,
2013. Qualifying marine and hydrokinetic energy
facilities must begin construction on or before
December 31, 2013.
G. MISCELLANEOUS.
1.
Taxpayer may make an irrevocable election to take a
30% tax credit under IRC §48 instead of the tax
credit above.
Taxpayer may apply establish the beginning
construction by starting physical work of
significant nature or by meeting the safe harbor
paying or incurring 5% or more of the total cost
the facility.
of
a
of
of
Federal business income tax credit for investment in
energy property
A. GENERAL DESCRIPTION. The Federal Internal Revenue
Code provides a business income tax credit in the amount of
10 or 30% the basis of qualifying energy property
investments. IRC §48; Treas. Reg § 1.48-1 through -9; Rev
Rul 70-236; Rev Rul 79-183; Notice 2008-68, 2008-34 IRB
418; PLR 200947027; PLR 201043023; PLR 201043023; PLR
201121005; CCA 2011222017; PLR 201142022; PLR
201142005; PLR 201308005; PLR 201310001.
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer owners placing qualifying energy property in
service.
C. QUALIFYING ACTIVITY. Taxpayer must place qualifying
energy property in service. Qualifying energy property is fuel
cell property, solar energy property, small wind energy
property, geothermal property, geothermal heat pump systems
property, microturbine property and combined heat and power
system property. Qualifying energy property must meet
performance and quality standards prescribed by regulations,
which are in effect at the time of the acquisition of the
property. Qualifying fuel cell property is an integrated system
comprised of a fuel cell stack assembly and associated balance
of plant components which converts a fuel into electricity
using electrochemical means, that has a nameplate capacity of
at least 0.5 kilowatt of electricity using an electrochemical
process, and has an electricity-only generation efficiency
greater than 30%. Qualifying solar energy property is
equipment which uses solar energy to generate electricity, to
heat or cool (or provide hot water for use in) a building or
structure, or to provide solar process heat. Qualifying small
wind energy property is property that uses a wind turbine that
has a nameplate capacity of not more than 100 kilowatts to
generate electricity.
Qualifying geothermal property is
equipment used to produce, distribute, or use energy derived
from a geothermal deposit including well-head and
“downhole” equipment (such as screening or slotted liners,
tubing, downhole pumps, and associated equipment).
Qualifying geothermal heat pump system property is
equipment that uses the ground or ground water as a thermal
energy source to heat a structure or as a thermal energy sink to
cool a structure. Qualifying microturbine property is a
stationary microturbine power plant that has (1) a nameplate
capacity of less than 2,000 kilowatts and (2) an electricityonly generation efficiency of not less than 26% at
International Standard Organization conditions. Qualifying
combined heat and power system property is property which
uses the same energy source for the simultaneous or sequential
generation of electrical power, mechanical shaft power, or
both, in combination with the generation of steam or other
forms of useful thermal energy (including heating and cooling
applications), which produces at least 20% of its total useful
energy in the form of thermal energy which is not used to
produce electrical or mechanical power (or combination
thereof), and at least 20% of its total useful energy in the form
of electrical or mechanical power (or combination thereof), the
energy efficiency percentage of which exceeds 60%.
1.
2.
3.
4.
5.
6.
7.
Qualifying solar energy property includes equipment
that uses solar energy to illuminate the inside of a
structure using fiber-optic distributed sunlight.
Qualifying solar energy property includes reflective
roof surfaces when installed with rooftop
photovoltaic solar generation system.
Qualifying solar energy property includes a
building's structural components that use solar
energy to produce electricity. Qualifying solar
energy property includes installed solar roofmounted system except to the extent that Regs.
§1.48-9 requires that a portion of the basis of the
property is allocable to any portion of such property
that performs the function of a roof, e.g., protection
from rain, snow , wind, sun, hot or cold
temperatures or that provides structural support or
insulation.
Qualifying solar energy property includes the
photovoltaic (PV) curtain wall (in its component
parts) which generated electricity through the use of
solar energy and also enclosed the building.
Qualifying solar energy property does not include
property used to generate energy for the purpose of
heating a swimming pool.
Qualifying geothermal equipment does not need to
be specially designed for geothermal use, but must
be used exclusively for geothermal use.
Qualifying energy property includes storage devices.
D. INCENTIVE AMOUNTS. The tax credit amount is 30% of
the cost of fuel cell property, solar energy property used to
generate electricity, to heat or cool (or provide hot water for
use in) a structure, or to provide solar process heat, solar
energy property used to illuminate the inside of a structure
using fiber-optic distributed sunlight, and small wind energy
property. The tax credit amount is 10% the cost of geothermal
property used to produce, distribute, or use energy,
geothermal heat pump systems property used to heat or cool a
structure, qualifying microturbine property and qualifying
combined heat and power system property.
1.
Qualifying costs includes property financed with
nonqualifying nonrecourse financing, subsidized
financing or tax-exempt private activity bonds.
E. INCENTIVE LIMITS. The maximum annual tax credit
amount is $1,500 for each 0.5 kilowatt of capacity for
qualifying fuel cell property and $200 for each kilowatt of
capacity for qualifying microturbine property.
F. INCENTIVE TIMEFRAME. The tax credit for qualifying fuel
cell property expires December 31, 2016. The tax credit for
qualifying solar energy property expires December 31, 2016.
The tax credit for qualifying small wind property expires
December 31, 2012. The tax credit for qualifying combined
heat and power system property expires December 31, 2016.
The tax credit for qualifying microturbine property expires
December 31, 2016. Unused tax credit may be carried back 1
year and carried forward 20 years.
G. MISCELLANEOUS.
1.
00.03
The tax credit may be recaptured if the energy
property is disposed of or otherwise ceases to be
energy property before the end of the 5-year period
after the property is placed in service. There is a
20% recapture of credit for each full year the
property ceases to be qualifying energy property.
Recapture is not triggered if a disposition or
cessation occurs 5 years or more after the date the
property is placed in service.
Federal business income tax credit for investment in
advanced energy property
A. GENERAL DESCRIPTION. The Federal Internal Revenue
Code provides a business income tax credit in the amount of
30% of the qualifying investment in qualifying advanced
energy manufacturing projects. IRC §48C; Notice 2009-72,
2009-36 IRB; CCA 201052005; Notice 2013-12.
B. ELIGIBLE TAXPAYERS.
Taxpayers investing in
manufacturing projects.
The tax credit is available to
qualifying advanced energy
C. QUALIFYING ACTIVITY. Taxpayer must invest in a
qualifying advanced energy manufacturing project.
A
qualifying advanced energy project is a project which reequips, expands, or establishes a manufacturing facility for the
production of: (1) property designed to be used to produce
energy from the sun, wind, geothermal deposits or other
renewable resources, (2) fuel cells, microturbines, or an
energy storage system for use with electric or hybrid-electric
motor vehicles, (3) electric grids to support the transmission of
intermittent sources of renewable energy, including storage of
that energy, (4) property designed to capture and sequester
carbon dioxide emissions, (5) property designed to refine or
blend renewable fuels, other than fossil fuels, to produce
energy conservation technologies, (6) new qualifying plug-in
electric drive motor vehicles, qualifying plug-in electric
vehicles, or components which are designed specifically for
use with those vehicles, including electric motors, generators,
and power control units, or (7) other advanced energy property
designed to reduce greenhouse gas emissions as may be
determined by IRS.
1.
2.
3.
4.
A qualifying advanced energy project must be
certified by IRS, in consultation with the US
Department of Energy, through a qualifying
advanced energy project application process to
consider and award certifications to Taxpayer. In
determining which qualifying advanced energy
projects to certify, IRS will take into consideration
only those projects where there is a reasonable
expectation of commercial viability. IRS will also
take into consideration which projects: (i) will
provide the greatest domestic job creation (both
direct and indirect) during the tax credit period, (ii)
will provide the greatest net impact in avoiding or
reducing air pollutants or anthropogenic emissions
of greenhouse gases, (iii) have the greatest potential
for technological innovation and commercial
deployment, (iv) have the lowest levelized cost of
generated or stored energy, or of measured reduction
in energy consumption or greenhouse gas emission
(based on costs of the full supply chain), and (v)
have the shortest project time from certification to
completion. A qualifying advanced energy project
which has been allocated a tax credit, but
subsequently undergoes a “significant” change in
plans, may be denied the tax credit. A “significant”
change in plans is not a change that would have
influenced DOE, but rather, it is any change that a
reasonable person would conclude might have
influenced DOE in recommending or ranking the
project or the IRS in accepting the project
application, had they known about the change when
they were considering the application.
A qualifying advanced energy project may include
any portion of an investment in other projects as
eligible for a credit under IRC §48C.
A qualifying advanced energy project does not
include any qualifying investment for which a credit
is allowed under IRC §§48, 48A or 48B, or for
which a payment is received under §1603 of the
American Recovery and Reinvestment Tax Act of
2009.
A qualifying advanced energy project does not
include any portion of a project for the production of
any property which is used in the refining or
blending of any transportation fuel (other than
renewable fuels).
D. INCENTIVE AMOUNTS. The tax credit amount is 30% of
the qualifying investment. The qualifying investment amount
is the basis of eligible property placed in service during the
taxable year. Eligible property is property (a) that is necessary
for the production of specified energy property, (b) that is
tangible personal property, or other tangible property, if such
property is used as an integral part of the facility, and (c) with
respect to which depreciation (or amortization) is allowable.
1.
Eligible property does not include a building or its
structural components.
E. INCENTIVE LIMITS. The nationwide maximum cumulative
tax credit amount is $2.3 billion. Phase II program has
approximately $150 million of tax credit available for
reallocation. The maximum tax credit amount is $30 million
per project.
F. INCENTIVE TIMEFRAME. Taxpayer must apply for the tax
credit during the Phase II program round beginning February
7, 2013 and ending on July 23, 2013. Preliminary application
for US Department of Energy recommendation must be
submitted by April 9, 2013. The IRS will accept or reject
Phase II program round applications by November 15, 2013.
Taxpayer will have 1 year from the date IRS accepts the
application during which to provide to IRS evidence that the
requirements of the certification have been met. Taxpayer
receiving a certification has 3 years from the date of issuance
of the certification to place the project in service.
G. MISCELLANEOUS.
1.
2.
00.04
The basis of qualifying property must be reduced by
the amount of tax credit received.
Rules similar to the rules relating to the treatment of
qualifying progress expenditures under former IRC
§46(c) and (d) apply.
Federal business income tax credit for qualifying
alternative fuel vehicle refueling property
A. GENERAL DESCRIPTION. The Federal Internal Revenue
Code provides a business income tax credit in the amount of
30% of the cost of installing qualifying alternative fuel vehicle
refueling property. IRC §30C; Notice 2007-43, 2007-22 IRB
1318; PLR 201034007.
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer owners of qualifying alternative fuel vehicle
refueling property.
1.
Taxpayer selling the property to a tax-exempt
purchaser may claim the tax credit. Taxpayer seller
must clearly disclose to the tax-exempt purchaser
the amount of any credit allowable for that property.
C. QUALIFYING ACTIVITY. Taxpayer must own qualifying
alternative fuel vehicle refueling property.
Qualifying
alternative fuel vehicle refueling property is property for the
storage or dispensing of a clean-burning fuel or electricity into
the fuel tank or battery of a motor vehicle propelled by such
fuel or electricity. The storage or dispensing of the fuel or
electricity must be at the point of delivery into the fuel tank or
battery of the motor vehicle. Clean-burning fuels are fuels at
least 85% of the volume of which consists of ethanol, natural
gas, compressed natural gas, liquefied natural gas, liquefied
petroleum gas, hydrogen or any mixture of biodiesel and
diesel fuel, determined without regard to any use of kerosene
and containing at least 20% biodiesel.
1.
2.
3.
4.
Qualifying alternative fuel vehicle refueling
property does not include a building or its structural
components.
Qualifying alternative fuel vehicle refueling
property must not be used predominantly outside the
U.S. and may be used predominantly in a U.S.
possession.
Qualifying alternative fuel vehicle refueling
property does not include the cost of any property
taken into account under the expensing rules of IRC
§179.
Qualifying alternative fuel vehicle refueling
property does not include hydrogen refueling station
that dispenses hydrogen into fork lift trucks.
D. INCENTIVE AMOUNTS. The tax credit amount is 30% of
the cost of qualifying alternative fuel vehicle refueling
property. The cost of qualifying alternative fuel vehicle
refueling property includes the cost of acquiring or
constructing the qualifying alternative fuel vehicle refueling
property or of converting conventional refueling property into
qualifying alternative fuel vehicle refueling property.
1.
2.
3.
4.
The cost of qualifying alternative fuel vehicle
refueling property does not include costs that are
properly allocable to land or to a building and its
structural components. Costs properly allocable to
land include costs related to the acquisition of land
on which the qualifying alternative fuel vehicle
refueling property is located and expenses for
permits, legal fees, project management, or
engineering to the extent such expenses are related
to the land.
The cost of qualifying alternative fuel vehicle
refueling property does not include any amount that
is taken into account under IRC §179 (relating to the
election to expense certain depreciable business
assets).
If converted qualifying alternative fuel vehicle
refueling property is treated as reconditioned or
rebuilt property, the cost of the qualifying alternative
fuel vehicle refueling property includes the cost of
reconditioning or rebuilding the non-qualifying
alternative fuel vehicle property, but does not
include the basis of the non-qualifying alternative
fuel vehicle property. For converted qualifying
alternative fuel vehicle refueling property, the cost
of the qualifying alternative fuel vehicle refueling
property includes both the adjusted basis of the nonqualifying alternative fuel vehicle property
immediately before the conversion and the cost of
the conversion.
The cost of qualifying alternative fuel vehicle
refueling property that is dual-use property used to
store and/or dispense both alternative fuel and
conventional fuel, includes the cost of the dual-use
property only to the extent such cost exceeds the
cost of equivalent conventional refueling property.
E. INCENTIVE LIMITS. The maximum annual tax credit
amounts are $30,000 per location, for qualifying alternative
fuel vehicle refueling property used in a trade or business and
$1,000 per location, for qualifying alternative fuel vehicle
refueling property installed on property which is used as a
principal residence.
1.
The maximum tax credit allowable for qualifying
alternative fuel vehicle refueling property installed
on property which is used as a principal residence
cannot exceed for any taxable year the difference
between Taxpayer’s regular tax (reduced by certain
other credits) and Taxpayer’s tentative minimum
tax.
F. INCENTIVE TIMEFRAME. The tax credit expires December
31, 2013. For qualifying alternative fuel vehicle refueling
property relating to hydrogen, the tax credit expires December
31, 2014. Unused tax credit for qualifying refueling property
used in a trade or business may be carried back 1 year and
forward 20 years.
G. MISCELLANEOUS.
1.
2.
3.
00.05
The tax credit may be recapture if the alternative
fuel vehicle refueling property ceases to qualify as
qualifying alternative fuel vehicle refueling
property.
Taxpayer’s basis in qualifying alternative fuel
vehicle refueling property is reduced by the amount
of the tax credit.
Taxpayer may elect not to have IRC §30C apply,
upon which no credit will be allowed.
Federal business income tax credit for certain
alternative fuels
A. GENERAL DESCRIPTION. The Federal Internal Revenue
Code provides a business income tax credit in amounts
ranging from $0.10 to $1.01 per gallon for the production and
sale or use of alcohol fuel and alcohol fuel mixtures. IRC §40;
IRS. Notice 2009-6, Sec. 3(a), 2009-3 IRB; IRC §87; AM2010004;
AM2010-002;
PLR
201042018;
PLR
201125008(EXPIRED).
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer producers and sellers or users of alcohol-based fuels
which are suitable for use in an internal combustion engine.
1.
2.
Taxpayers who have a productive capacity for
alcohol not in excess of 60 million gallons are
eligible small ethanol producers. For pass-through
entities, the limit amount applies at the entity level
and at the interest-holder level.
Taxpayers producing cellulosic biofuel must be
registered with the IRS.
C. QUALIFYING ACTIVITY. Taxpayer must produce and sell
or use alcohol-based fuels. Alcohol-based fuels are alcohol
mixtures, alcohol fuels, second generation biofuel and ethanol.
An alcohol mixture is a mixture of alcohol and gasoline or of
alcohol and a special fuel, which is sold by Taxpayer producer
to any person for use as a fuel, or used by Taxpayer as a fuel.
Alcohol fuel includes methanol and ethanol, and the alcohol
gallon equivalent of ethyl tertiary butyl ether, or other ethers
produced from such alcohol. Second generation biofuel is any
alcohol, ether, ester, or hydrocarbon that is produced in the
U.S. and derived from any lignocellulosic or hemicellulosic
matter that is available on a renewable or recurring basis,
including dedicated energy crops and trees, wood and wood
residues, plants, grasses, agricultural residues, fibers, animal
wastes and other waste materials, and municipal solid waste,
and any cultivated algae, cyanobacteria, or lemna. Ethanol
production is any alcohol which is ethanol and is sold by
Taxpayer producer to another person for use as a fuel, or used
by Taxpayer as a fuel.
1.
2.
3.
4.
5.
6.
Qualifying production does not include casual offfarm production.
Qualifying alcohol does not include alcohol
produced from petroleum, natural gas, or coal, or
any alcohol with a proof of less than 150.
(i).
Alcohol proof
does not include
denaturants, which are additives that
make the alcohol unfit for human
consumption. Denaturants are taken into
account in determining the volume of
alcohol eligible for the per-gallon
incentive and cannot exceed 2% of
volume.
Qualifying fuel does not include fuel that is
produced outside the United States for use as a fuel
outside the United States.
Qualifying second generation biofuel must be both
produced in the United States and used as fuel in the
United States.
Qualifying fuel does not include fuels containing
significant water, sediment, or ash content, such as
black liquor.
Qualifying fuel does not include any liquid fuel
derived from a pulp or paper manufacturing process.
D. INCENTIVE AMOUNTS. The tax credit amount is equal to
the sum of: (1) the alcohol mixture credit, (2) the alcohol
credit, the small ethanol producer credit and the second
generation biofuel producer credit. The alcohol and alcohol
mixture credit is $0.50 for each gallon of alcohol that is used
as a fuel or blended into a fuel mixture. Eligible small ethanol
producers are entitled to a tax credit equal to $0.10 for each
gallon. The second generation biofuel producer credit of any
taxpayer is an amount equal to the $1.01 for each gallon of
qualifying second generation biofuel production.
1.
The tax credit amount may not double count second
generation biofuel in an alcohol mixture or second
generation biofuel as ethanol.
2.
The alcohol and alcohol mixture credit is reduced to
$0.45 for at-least-150-but-less-than-190 proof
alcohol.
E. INCENTIVE LIMITS.
amount is $1.5 million.
1.
The maximum annual tax credit
For qualifying alcohol fuels projects, the tax credit is
not available for any period before January 1, 2011
during which the rates under IRC §4081 removal-atterminal excise tax are at $0.043 per gallon.
F. INCENTIVE TIMEFRAME. The tax credit expires December
31, 2011. For qualifying second generation biofuel projects,
the tax credit expires December 31, 2013. Unused tax credit
may be carried back 1 year and carried forward 20 years, or 3
years in the event of expiration of the tax credit.
G. MISCELLANEOUS.
1.
2.
3.
00.06
The tax credit may be recaptured if the alcohol is
separated from the mixture or the mixture is used
other than as a fuel.
For qualifying alcohol fuels projects, the tax credit is
allowable against the alternative minimum tax.
Taxpayer must include in gross income the amount
of the tax credit determined with respect to Taxpayer
for the taxable year.
Federal business income tax credit for biodiesel fuels
A. GENERAL DESCRIPTION. The Federal Internal Revenue
Code provides a business income tax credit in the amounts of
$1.00 per gallon of biodiesel , biodiesel mixtures, renewable
biomass diesel and renewable biomass diesel mixtures
produced and sold or used and $0.10 per gallon of small agribiodiesel produced. IRC §40A; Prop Reg §1.40A-1; IRC §87;
PLR 201005017; CCA 200945035; AM 2010-002; CCA
201144024.
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer producers, sellers, and users of biodiesel and
biodiesel mixtures.
1.
Taxpayers who have a productive capacity for agribiodiesel not in excess of 60 million gallons are
small agri-biodiesel producers.
C. QUALIFYING ACTIVITY. Taxpayer must produce, sell and
use biodiesel used to make biodiesel mixtures or produce agribiodiesel. A qualifying biodiesel mixture is a mixture of
biodiesel and diesel fuel which is sold by Taxpayer, in a trade
or business, to any person for use as a fuel, or is used by
Taxpayer as a fuel. Qualifying agri-biodiesel production is
any agri-biodiesel which is produced by an eligible small agribiodiesel producer which is sold to another person for use in
the production of a qualifying biodiesel mixture, as a fuel in a
3.
trade or business, or to sell at retail to another person, placing
such agri-biodiesel in the fuel tank; or is used or sold by the
eligible small agri-biodiesel producer for any purpose
described above.
1.
2.
3.
Qualifying biodiesel includes diesel fuel derived
from biomass using a thermal depolymerization
process which meets the registration requirements
for fuels and fuel additives established by the EPA
under section 211 of the Clean Air Act, and the
requirements of the ASTM D975 or D396. Thermal
depolymerization processes use heat and pressure,
with or without the presence of catalysts.
(i).
Qualifying biodiesel does not include any
liquid to which a IRC §40 credit may be
determined.
Taxpayer users must obtain a certification from the
producer or importer of the biodiesel which
identifies the product produced and the percentage
of biodiesel and agri-biodiesel in the product.
Qualifying production does not include casual offfarm production.
D. INCENTIVE AMOUNTS. The tax credit amount is the sum
of three separate credits: (1) the biodiesel mixture credit; (2)
the biodiesel credit; (3) the small agri-biodiesel producer
credit.
1.
2.
3.
The biodiesel mixture credit equals $1.00 per gallon
of biodiesel used by Taxpayer in the production of a
qualifying biodiesel mixture.
The biodiesel credit equals $1.00 per gallon of
biodiesel which is not in a mixture with diesel fuel
used by Taxpayer as a fuel in a trade or business or
sold by Taxpayer at retail to a person and placed in
the fuel tank of such person's vehicle.
The small agri-biodiesel producer credit equals
$0.10 per gallon of qualifying agri-biodiesel
production.
(i).
Any portion of the small agri-biodiesel
producer credit may be apportioned pro
rata among patrons of the organization on
the basis of the quantity or value of
business done with or for such patrons for
the taxable year.
00.07
Taxpayer must include in gross income the amount
of tax credit determined with respect to Taxpayer for
the taxable year.
Federal income tax credit for plug-in electric vehicles
A. GENERAL DESCRIPTION. The Federal Internal Revenue
Code provides an income tax credit in the amount of 10% of
the cost of any qualifying plug-in electric vehicle placed in
service. IRC §30; IRS Notice 2009-58.
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayers owners of a qualifying plug-in electric vehicle. The
original use of the vehicle must begin with Taxpayer.
Taxpayer must acquire the vehicle for use or lease and not for
resale.
1.
Taxpayer selling the property to a tax exempt
purchaser may claim the tax credit. Taxpayer seller
must clearly disclose to the tax exempt purchaser the
amount of any tax credit allowable for that property.
C. QUALIFYING ACTIVITY. Taxpayer must own a qualifying
plug-in electric vehicle. A qualifying plug-in electric vehicle is
a vehicle which is manufactured primarily for use on public
streets, roads and highways, has a gross vehicle weight rating
of less than 14,000 pounds, is propelled to a significant extent
by an electric motor that draws electricity from a battery that
has a capacity of at least 4 kilowatt hours (at least 2.5 kilowatt
hours in the case of a 2- or-3-wheeled vehicle), and is capable
of being recharged from an external source of electricity.
1.
2.
Qualifying plug-in electric vehicles must be is
acquired for use or lease by the taxpayer and not for
resale and made by a specified manufacturer.
Taxpayer purchasers may rely on the certification by
the domestic manufacturer—or domestic distributor
in the case of a foreign vehicle—that a particular
make, model, and model year of vehicle qualifies.
D. INCENTIVE AMOUNTS. The tax credit amount is 10% of
the cost of any qualifying plug-in electric vehicle.
E. INCENTIVE LIMITS. The maximum tax credit amount is
the tax credit for 15 million gallons.
E. INCENTIVE LIMITS. The maximum tax credit amount is
$2,500 per vehicle.
F. INCENTIVE TIMEFRAME. The tax credit expires December
31, 2013.
F. INCENTIVE TIMEFRAME. The tax credit expires December
31, 2011.
G. MISCELLANEOUS.
G. MISCELLANEOUS. Taxpayer may not take tax credit under
IRC §30D.
1.
2.
The tax credit may be recaptured if any person
separates the biodiesel from a qualifying biodiesel
mixture, or uses the mixture other than as a fuel.
The tax credit may be recaptured if any person
mixes retail sold biodiesel or uses such biodiesel
other than as a fuel.
1.
The tax credit may be recaptured if the qualifying
property stops being property eligible for the tax
credit.
00.08
Federal business income tax credit for new qualifying
plug-in electric drive motor vehicles
A. GENERAL DESCRIPTION. The Federal Internal Revenue
Code provides a business income tax credit in the amount of
$2,500 plus $417 for each kilowatt hour of traction battery
capacity in excess of four kilowatt hours for each new
qualifying plug-in electric drive motor vehicle placed in
service. IRC §30D; IRS Notice 2009-89; CONEX-150568-09;
INFO 2010-0009; INFO 2010-0121; INFO 2011-0071; INFO
2011-0073; Notice 2012-54.
F. INCENTIVE TIMEFRAME. The tax credit will be reduced
when the total number of new qualifying plug-in electric drive
motor vehicles sold for use in the U.S. is at least 250,000. The
phase out percentages are 50% for the first 2 calendar quarters
of the phase-out period, 25% for the third and fourth calendar
quarters of the phase-out period, and 0% for each later
calendar quarter. The tax credit for individual taxpayers may
not be carried forward to future years or back to past years.
1.
The tax credit for qualified 2- or 3-wheeled plug-in
electric vehicles expires December 31, 2013.
G. MISCELLANEOUS.
B. ELIGIBLE TAXPAYERS.
Taxpayer owners of new
qualifying plug-in electric drive motor vehicle, including the
lessor of a vehicle subject to a lease.
1.
Taxpayer selling the property to a tax exempt
purchaser may claim the tax credit. Taxpayer seller
must clearly disclose to the tax exempt purchaser the
amount of any tax credit allowable for that property.
C. QUALIFYING ACTIVITY. Taxpayer must own a new
qualifying plug-in electric drive motor vehicle predominately
used in the U.S. A new qualifying plug-in electric drive motor
vehicle is a motor vehicle which draws propulsion using a
traction battery with at least 4 kilowatt hours of capacity and
uses an offboard source of energy to recharge the battery. A
new qualifying plug-in electric drive motor vehicle must have
received the applicable certificate of conformity under the title
II of the Clean Air Act.
1.
2.
A new qualifying plug-in electric drive motor
vehicle does not include low-speed vehicles or
electric golf carts.
A qualified 2- or 3-wheeled plug-in electric vehicle
is a vehicle which has 2 or 3 wheels, draws
propulsion using a traction battery with at least 2.5
kilowatt hours of capacity and uses an offboard
source of energy to recharge the battery, is
manufactured primarily for use on public streets,
roads, and highways, is capable of achieving a speed
of 45 miles per hour or greater
D. INCENTIVE AMOUNTS. The tax credit amount is $2,500
plus $417 for each kilowatt hour of traction battery capacity in
excess of four kilowatt hours. Traction battery capacity is
measured in kilowatt hours from a 100% state of charge to a
0% state of charge. The tax credit amount is 10% of the cost
of a qualified 2- or 3-wheeled plug-in electric vehicle.
00.09
Federal business income tax credit for alternative
motor vehicles
A. GENERAL DESCRIPTION. The Federal Internal Revenue
Code provides a business income tax credit in amounts
ranging from $8,000 - $40,000 for the purchase of alternative
motor vehicles which include qualifying fuel cell motor
vehicles, advanced lean-burn technology motor vehicles,
qualifying hybrid motor vehicles, qualifying alternative fuel
motor vehicles, and vehicles converted into qualifying plug-in
electric drive motor vehicles. IRC §30B; Notice 2010-42;
INFO 2011-0008.
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer purchasers of alternative motor vehicles.
1.
C. QUALIFYING ACTIVITY. Taxpayer must purchase an
alternative motor vehicle for original use or lease in the United
States. An alternative motor vehicle is a vehicle that has
received a certificate that it meets or exceeds the applicable
Tier II emission level established in regulations prescribed by
the US Environmental Protection Agency for that make and
model year vehicle. Alternative motor vehicles must be made
by a specified manufacturer. Alternative motor vehicles are
qualifying fuel cell motor vehicles, advanced lean burn
technology motor vehicles, qualifying hybrid motor vehicles,
qualifying alternative fuel motor vehicles, and qualifying
plug-in electric drive motor vehicles.
1.
E. INCENTIVE LIMITS. The maximum tax credit amount is
$7,500. The maximum tax credit amount for a qualified 2- or
3-wheeled plug-in electric vehicle is $2,500.
1.
The tax credit is not allowed with respect to the
portion of the cost of any property taken expensed
under IRC §179.
Taxpayer selling the property to a tax exempt
purchaser may claim the tax credit. Taxpayer seller
must clearly disclose to the tax exempt purchaser the
amount of any tax credit allowable for that property.
2.
A qualifying fuel cell motor vehicle is a motor
vehicle that is propelled by power from one or more
cells that convert chemical energy directly into
electricity by combining oxygen with hydrogen fuel
that is stored on board the vehicle in any form and
which may or may not require reformation before
use.
An advanced lean burn technology motor vehicle is
a passenger automobile or a light truck with an
internal combustion engine that is designed to
3.
4.
5.
operate primarily using more air than is necessary
for complete combustion of the fuel, incorporates
direct injection, and achieves at least 125% of the
2002 model year city fuel economy.
A qualifying hybrid motor vehicle is a motor vehicle
that draws propulsion energy from onboard sources
of stored energy which are both an internal
combustion or heat engine using consumable fuel,
and a rechargeable energy storage system, and has a
maximum available power (from the rechargeable
energy storage system) in the range of 4% - 15% for
passenger automobile and light trucks to vehicles
with a GVWR in excess of 14,000 pounds.
Qualifying hybrid motor does not include new
qualifying plug-in electric drive motor vehicles as
defined in IRC §30D.
A qualifying alternative fuel motor vehicle is any
motor vehicle that is capable of operating only on an
alternative fuel. Alternative fuel is compressed
natural gas, liquefied natural gas, liquefied
petroleum gas, hydrogen, and any liquid at least
85% of the volume of which consists of methanol.
A qualifying plug-in electric drive motor vehicle is a
motor vehicle which draws propulsion using a
traction battery with at least 4 kilowatt hours of
capacity and an offboard source of energy to
recharge the battery and which for a passenger
vehicle or light truck that has a GVWR of no more
than 8,500 pounds, has received a certificate of
conformity under the Clean Air Act and meets or
exceeds the equivalent California low emission
vehicle standard under §243(e)(2) of the Clean Air
Act; and in the case of a vehicle having a GVWR of
6,000 pounds or less, the Bin 5 Tier II emission
standard, and in the case of a vehicle having a
GVWR of more than 6,000 pounds but not more
than 8,500 pounds, the Bin 8 Tier II emission
standard.
D. INCENTIVE AMOUNTS. The tax credit amount equals the
total of: (1) the qualifying fuel cell motor vehicle credit; (2)
the qualifying advanced lean burn technology motor vehicle
credit; (3) the qualifying hybrid motor vehicle credit; (4) the
qualifying alternative fuel motor vehicle credit; and (5) the
plug-in conversion credit. The tax credit amount is generally
based on the vehicle’s relative fuel efficiency, and may vary
considerably.
3.
4.
E. INCENTIVE LIMITS. The maximum cumulative tax credit
amount is the tax credit for 60,000 qualifying advanced lean
burn technology motor vehicles and 60,000 qualifying hybrid
motor vehicles.
1.
1.
2.
The qualifying fuel cell motor vehicle credit amount
ranges from $4,000 - $40,000 for vehicles with a
gross vehicle weight ratings (GVWR) ranging from
8,500 - 26,000 pounds. The qualifying fuel cell
motor vehicle credit for passenger car or light truck
is further increased to reflect fuel efficiency in
amounts ranging from $1,000 - $4,000 for vehicles
achieving 150% - 300% of the 2002 model year city
fuel economy (2002 MYCFE).
The qualifying advanced lean burn technology
motor vehicle credit amount ranges from $400 $2,400 per vehicle, for achieving a 2002 MYCFE in
the range of 125% to 250%. The qualifying
advanced lean burn technology motor vehicle credit
amount is increased by a conservation credit amount
of $250 - $1,000 for lifetime fuel savings in the
range of 1,200 -3,000 gallons of gasoline.
The qualifying hybrid motor vehicle credit amount
is an amount equal to the applicable percentage of
the qualifying incremental hybrid cost of the vehicle.
The applicable percentage ranges from 20% - 40%
for vehicle achieving an increase in city fuel
economy relative to a comparable vehicle ranging
from 30% - 50%. The qualifying incremental hybrid
cost of any vehicle is equal to the amount of the
excess of the manufacturer's suggested retail price
for the vehicle over the price for a comparable
vehicle, to the extent that amount does not exceed
amounts ranging from $7,500 to $26,000 for
vehicles with a GVWR ranging from 14,000 –
26,000 pounds.
(i).
The tax credit for a passenger car or light
truck that qualifies as a hybrid motor
vehicle is determined under the same
tables that would apply if the vehicle
qualifying as an advance lean burn
technology vehicle.
The qualifying alternative fuel motor vehicle credit
amount is the applicable percentage of the
incremental cost of the vehicle. The applicable
percentage for a qualifying alternative fuel motor
vehicle is 50% plus an additional 30% if the vehicle
has received a Clean Air Act or California law
certificate of conformity and meets or exceeds the
most stringent standard available for certification
under the Clean Air Act or California law for that
make and model year vehicle. The incremental cost
is the excess of the manufacturer’s suggested retail
price (MSRP) for the vehicle over the MSRP for a
gasoline or diesel fuel motor vehicle of the same
model to the extent the amount does not exceed
amounts ranging $5,000 - $40,000 for vehicles with
a GVWR ranging from 8,500 -26,000 pounds.
The tax credit is not allowed for the portion of the
cost of any property expensed under IRC §179.
F. INCENTIVE TIMEFRAME. The tax credit expires December
31, 2010, for hybrid motor vehicles that are passenger cars or
light trucks and expired December 31, 2009 for hybrid motor
vehicles that not are passenger cars or light trucks. The tax
credit for advanced lean burn technology motor vehicles
expires December 31, 2010. The tax credit for qualifying
alternative fuel motor vehicles expires December 31, 2010.
The tax credit for vehicles converted into qualifying plug-in
electric drive motor vehicle expires December 31, 2011. The
tax credit for vehicles converted into qualifying fuel cell motor
vehicles expires December 31, 2014. Unused tax credit for
businesses may be carried back 1 year and carried forward 20
years. Unused tax credit for individuals may not be carried
back or forward.
G. MISCELLANEOUS.
1.
2.
00.10
The tax basis of the qualifying property must be
reduced by the amount of the tax credit allowed,
determined without regard to the IRC §30B(g) rules
treating part of the tax credit as a general business
credit and limiting the use of the remainder.
Taxpayer may elect not to take the tax credit.
Federal business income tax credit for new energy
efficient homes
A. GENERAL DESCRIPTION. The Federal Internal Revenue
Code provides a business income tax credit in the amount of
$2,000 (or $1,000) for each qualifying new energy efficient
home (or manufactured home) which is constructed by an
eligible contractor and acquired by a person from the eligible
contractor for use as a residence. IRC §45L; Notice 2008-35,
2008-12 IRB.
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer contractors constructing qualifying new energy
efficient homes. An eligible contractor is the person that
constructed a qualifying new energy efficient home.
1.
Taxpayer must own and have basis in the qualifying
energy efficient home (or the qualifying energy
efficient manufactured home) during its construction
(or production). A Taxpayer that hires a third party
contractor is the eligible contractor and the third
party contractor is not an eligible contractor.
C. QUALIFYING ACTIVITY. Taxpayer must construct a
qualifying new energy efficient home that is acquired by a
person for use as a residence. A qualifying new energy
efficient home is new home that has a projected level of
annual heating and cooling costs that is 50% (or 30%) less
than a comparable dwelling constructed in accordance with
the standards of chapter 4 of the 2006 International Energy
Conservation Code.
D. INCENTIVE AMOUNTS. The tax credit amount is $2,000
for a 50% home or a 50% manufactured home and $1,000 for
certain manufactured homes.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME. The tax credit expires December
31, 2013.
G. MISCELLANEOUS.
00.11
Federal income tax credit for energy efficient
appliances
A. GENERAL DESCRIPTION. The Federal Internal Revenue
Code provides an income tax credit to manufacturers of
qualifying energy efficient appliance dishwashers, clothes
washers and refrigerators. IRC §45M.
B. ELIGIBLE TAXPAYERS.
Taxpayer manufacturers of
qualifying dishwashers, clothes washers and refrigerators.
C. QUALIFYING ACTIVITY. Taxpayer must manufacture
qualifying energy efficient appliances. Qualifying energy
efficient appliances are dishwasher, clothes washer and
refrigerator that qualifies for the tax credit. A qualifying
dishwasher is a residential dishwasher subject to the energy
conservation standards established by the US Department of
Energy which uses no more than 280 - 295 kilowatt hours per
year and 4.00 - 4.25 gallons per cycle. A qualifying clothes
washer is a residential model clothes washer, including a
commercial residential-style coin operated washer which
meets or exceeds a 2.4 – 2.8 modified energy factor and have
a maximum water consumption factor of 3.5 - 4.2. A
qualifying refrigerator is a residential-model automatic-defrost
refrigerator-freezer that has an internal volume of at least 16.5
cubic feet, which must consume at least 20% - 30% fewer
kilowatt hours per year than the 2001 energy conservation
standards.
1.
Qualifying energy efficient appliances must be
appliances that exceed the Taxpayer's average
production of that category of appliance in the 2
previous calendar years.
D. INCENTIVE AMOUNTS. In 2011, 2012 and 2013, The tax
credit amount is equal to the applicable amount multiplied by
the eligible production.
1.
2.
3.
For qualifying dishwashers the applicable amount
ranges from $50 - $75 per appliance.
For qualifying clothes washers the applicable
amount ranges from $$225 per appliance.
For qualifying refrigerators the applicable amount is:
$150 - $200 per appliance.
E. INCENTIVE LIMITS. The maximum annual tax credit
amount is 4% of Taxpayer’s average annual gross receipts for
the 3 previous tax years. The maximum cumulative tax credit
amount is $75 million and $25 million for 2011, 2012 and
2013.
1.
Highest-range efficiency refrigerators and large
high-range efficiency clothes washer are not taken
into account under the cumulative tax credit amount.
F. INCENTIVE TIMEFRAME. The tax credit is available for the
production in calendar years 2008 through 2013.
G. MISCELLANEOUS.
00.12
Federal income tax deduction for energy efficient
commercial buildings
A. GENERAL DESCRIPTION. The Federal Internal Revenue
Code provides an income tax deduction in the amount of
100% of the cost of energy efficient commercial building
property placed in service. IRC §179D; Notice 2006-52, 20061 CB 1175; Notice 2008-40, 2008-14 IRB 725; AM2010-007;
Rev. Proc. 2011-14; INFO 2011-0072.
B. ELIGIBLE TAXPAYERS. The tax deduction is available to
Taxpayer owners placing energy efficient commercial
building property in service.
1.
2.
Taxpayer may be the person primarily responsible
for designing the property if qualifying property is
installed on or in property owned by a federal, state,
or local government, or a subdivision of thereof.
The deduction may be allocated by the owner of the
property to the Taxpayer designer.
(i).
Property owned by a government entity
includes public schools.
(ii). Taxpayer designer is a person that creates
the
technical
specifications
for
installation
of
energy
efficient
commercial building property. A designer
may include an architect, engineer,
contractor, environmental consultant or
energy services provider who creates the
technical specifications for a new
building or an addition to an existing
building that incorporates energy efficient
commercial building property.
(iii). Taxpayer designer is not a person that
merely installs, repairs, or maintains the
property.
(iv). The owner of the building shall determine
which Taxpayer designer is primarily
responsible and allocate the full deduction
to that Taxpayer designer, or at the
owner's discretion, allocate the deduction
among several Taxpayer designers.
Taxpayer partners or shareholders of the designer
must reduce the adjusted bases in their partnership
interests or S corporation stock by the amount of the
§ 179D deduction. Sections 704(d) and 1366(d)
limit the benefit of the § 179D deduction to the
partners or shareholders’ adjusted bases in their
partnership interests or S corporation stock.
C. QUALIFYING ACTIVITY. Taxpayer must place in service
energy efficient commercial building property.
Energy
efficient commercial building property is depreciable property
installed on or in a building located in the U.S. which is
installed as part of the interior lighting systems, the heating,
cooling, ventilation, and hot water systems, or the building
envelope and is certified as being installed as part of a plan
designed to reduce the total annual energy and power costs of
the building by 50% or more in comparison to a reference
building that meets the minimum requirements of ASHRAE
Standard 90.1–2001.
1.
2.
3.
4.
Qualifying buildings must be wholly or partially
enclosed within exterior walls, or within exterior and
party walls, and a roof, affording shelter to persons,
animals, or property.
Qualifying building does not include a single-family
house, a multi-family structure of three stories or
fewer above grade, a manufactured house (mobile
home), or a manufactured house (modular).
Energy efficient commercial building property that
cannot be certified as reducing total annual energy
and power costs by 50% or more, may be certified
as a lighting, heating, cooling, ventilation & hot
water, or building envelope system that satisfies the
energy-savings targets for that system.
Qualifying energy reductions does not include
energy reductions in any other energy uses, such as
receptacles, process loads, refrigeration, cooking,
and elevators.
(i).
Partially qualifying heating, cooling,
ventilation, and hot water systems must
reduce the total annual energy and power
costs for combined usage of the building's
heating, cooling, ventilation, hot water,
and interior lighting systems by 16.66%
or more as compared to a reference
building. The required 16.66% reduction
must be accomplished solely through
energy and power cost reductions for the
heating, cooling, ventilation, and hot
water systems.
(ii). Partially qualifying building envelope
must reduce the total annual energy and
power costs with respect to combined
usage of the building's heating, cooling,
ventilation, hot water, and interior
lighting systems by 16.66% or more as
compared to a reference building. The
required 16.66% reduction must be
accomplished solely through energy and
power cost reductions for the heating,
cooling, ventilation, hot water, and
interior lighting systems. Taxpayer may
elect to substitute “10” for “16.66” for
energy efficient building envelope
property and substitute “20” for “16.66”
for energy efficient lighting property and
energy efficient heating, cooling,
ventilation, and hot water property.
(iii). Partially qualifying interior lighting
systems that will reduce the total annual
energy and power costs for combined
usage of the building's heating, cooling,
ventilation, hot water, and interior
lighting systems by 16.66% or more as
5.
6.
7.
compared to a reference building that
meets the minimum requirements of
Standard 90.1-2001. The required 16.66%
reduction must be accomplished solely
through energy and power cost reductions
for the heating, cooling, ventilation, hot
water, and interior lighting systems. For
property placed in service before final
regulations are issued, the interim lighting
rule provides that lighting system that
will reduce lighting power density of 25%
(50% in the case of a warehouse) of the
minimum requirements in Table 9.3.1.1
or Table 9.3.1.2 (not including additional
interior lighting power allowances) of
Standard
90.1–2001
are
partially
qualifying interior lighting systems. A
pro-rated partial deduction is allowed for
a lighting system that: (1) reduces
lighting power density between 25% and
40%; (2) has controls and circuiting that
comply fully with the mandatory and
prescriptive requirements of Standard
90.1-2001; (3) includes provision for bilevel switching in all occupancies except
hotel and motel guest rooms, store rooms,
restrooms, and public lobbies; and (4)
meets the minimum requirements for
calculated lighting levels as set forth in
the
IESNA
Lighting
Handbook,
Performance and Application, Ninth
Edition, 2000.
Qualifying computer software must prepare energy
or power cost savings calculation.
Qualifying individuals must inspect and test the
qualifying buildings to ensure compliance of the
buildings with energy-savings plans and targets.
Qualifying individuals must certify and provide an
explanation to the owner of the building of the
energy efficiency features of the building and its
projected annual energy costs.
Standard 90.1-2001 is Standard 90.1-2001 of the
American Society of Heating, Refrigerating, and Air
Conditioning Engineers and the Illuminating
Engineering
Society
of
North
America
(ASHRAE/IESNA) (as in effect on Apr. 2, 2003).
D. INCENTIVE AMOUNTS. The tax deduction amount is 100%
of the cost of energy efficient commercial building property.
E. INCENTIVE LIMITS. The maximum tax deduction amount
is the product of $1.80 and the square footage of the
qualifying building. The maximum tax deduction amount for
partially qualifying property is the product of $0.60 or $1.20
and the square footage of the qualifying building.
G. MISCELLANEOUS.
1.
00.13
The basis of the qualifying property must be reduced
by the amount of the tax deduction allowed or
allocated.
Federal income tax deduction for certain energy
property
A. GENERAL DESCRIPTION. The Federal Internal Revenue
Code provides an income tax accelerated cost recovery over 5
years for energy property.
IRC §168(e)(3); Memo
20113901F; PLR 201221002.
B. ELIGIBLE TAXPAYERS. The tax deduction is available to
Taxpayer owners placing in service energy property subject to
cost recovery.
C. QUALIFYING ACTIVITY. Taxpayer must place in service
energy property. Energy property is any property which is (1)
equipment which uses solar energy to generate electricity, to
heat or cool (or provide hot water for use in) a structure, or to
provide solar process heat, excepting property used to generate
energy for the purposes of heating a swimming pool; (2)
equipment which uses solar energy to illuminate the inside of
a structure using fiber-optic distributed sunlight but only with
respect to periods ending before January 1, 2017; (3)
equipment used to produce, distribute, or use energy derived
from a geothermal deposit, but only, in the case of electricity
generated by geothermal power, up to (but not including) the
electrical transmission stage; (4) qualifying fuel cell property
or qualifying microturbine property; (5) combined heat and
power system property, (6) qualifying small wind energy
property; or (7) equipment which uses the ground or ground
water as a thermal energy source to heat a structure or as a
thermal energy sink to cool a structure.
1.
Energy property must be qualifying small power
production facility within the meaning of section 16
U.S.C. 3(17)(C), as in effect on September 1, 1986.
D. INCENTIVE AMOUNTS. The tax deduction amount is the
amount MACRS specifically provides for IRC §48 energy
property in the 5-year class. The depreciation method for
property in the 5-year class is usually 200% declining balance,
with a switch to straight-line to maximize the deduction (the
200% declining balance method). The 5-year class consists of
property with an ADR midpoint of more than 4 years and less
than 10 years.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME.
December 31, 2016.
F. INCENTIVE TIMEFRAME.
December 31, 2013.
The tax deduction expires
G. MISCELLANEOUS.
The tax deduction expires
00.14
Federal income tax depreciation deduction for
cellulosic biofuel plant property
2.
A. GENERAL DESCRIPTION. The Federal Internal Revenue
Code provides an income tax depreciation deduction in the
amount of 50% of the adjusted basis of such property for
qualifying second generation biofuel plant property. IRC
§168(l).
B. ELIGIBLE TAXPAYERS. Taxpayer owners placing in
service qualifying second generation biofuel plant property
subject to cost recovery.
C. QUALIFYING ACTIVITY. Taxpayer must place in service
qualifying second generation biofuel plant property.
Qualifying second generation biofuel plant property is
depreciable property used in the United States solely to
produce second generation biofuel. Second generation biofuel
is any liquid fuel which is produced from any lignocellulosic
or hemicellulosic matter that is available on a renewable or
recurring basis, and any cultivated algae, cyanobacteria, or
lemna. Second generation biofuel includes bagasse (from
sugar cane), corn stalks and switchgrass; dedicated energy
crops such as energy cane, hybrid poplar wood, or elephant
grass; agricultural residues such as rice straw, corn stover, or
wheat straw; agricultural wastes such as rice hulls, corn fiber,
sugar beet pulp, citrus pulp, or citrus peels; forestry wastes
such as hardwood or softwood thinnings or residues from
timber operations; wood wastes such as saw mill waste or pulp
mill waste; and urban wastes such as the paper fraction of
municipal solid waste, municipal wood waste, or municipal
green waste.
1.
2.
Second generation biofuel plant property does not
include any property otherwise eligible for bonus
depreciation as qualifying property or qualifying
New York Liberty Zone property if it is depreciated
under the alternative depreciation system.
Second generation biofuel plant property does not
include any property any portion of which is
financed with the proceeds of tax-exempt
obligations.
D. INCENTIVE AMOUNTS. The tax deduction amount is 50%
of the adjusted basis of second generation biofuel plant
property.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME.
December 31, 2013.
The tax deduction expires
G. MISCELLANEOUS.
1.
The tax deduction may be recaptured if the amount
deducted as an expense under IRC §179(d) in the
year that property is placed in service exceeds the
total amount that would have been allowed as
3.
00.15
depreciation. The amount recaptured is treated as
ordinary income in the tax year of recapture.
Qualifying second generation biofuel plant property
are subject to rules similar to the rules under IRC
§179(d)(10).
The basis of qualifying second generation biofuel
plant property is reduced by the amount of the tax
deduction before computing the amount otherwise
allowable as a depreciation deduction for the tax
year and any later tax year.
Federal income tax credit for energy research
A. GENERAL DESCRIPTION. The Federal Internal Revenue
Code provides an income tax credit in the amount of 20% of
amounts paid to a qualifying energy research consortium for
energy research. IRC §41.
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayers paying or incurring qualifying research expenses in
carrying on a trade or business.
1.
For partnership, S corporation, or trust or estate
paying or incurring research expenses, the tax credit
passes through to Taxpayer partners, shareholders,
or beneficiaries.
C. QUALIFYING ACTIVITY. Taxpayer must pay an energy
research consortium for energy research. An energy research
consortium is a qualifying research consortium exempt from
tax under IRC §501(a) that is organized and operated
primarily to conduct energy research and development in the
public interest and to which at least 5 unrelated persons paid
or incurred amounts to that organization within the calendar
year.
1.
2.
Qualifying research consortium may not have a
single person pay or incur more than 50% of the
total amounts received by the research consortium
during the calendar year.
Qualifying energy research may not be conducted
outside of the U.S., Puerto Rico or a U.S.
possession.
D. INCENTIVE AMOUNTS. The tax credit amount is 20% of
amounts paid to a qualifying energy research consortium for
energy research. Unlike the general rule for the research
credit, the 20% credit for research by an energy research
consortium applies to all these expenditures, not only those in
excess of a base amount.
E. INCENTIVE LIMITS. Unused tax credit may be carried back
1 year and carried forward 20 years.
F. INCENTIVE TIMEFRAME. The tax expired December 31,
2009.
G. MISCELLANEOUS.
00.16
and (3) those projects will be completed with due
diligence and the proceeds of the issue will be spent
with due diligence.
(i).
The 5-year period may be extended if the
qualifying issuer establishes that the
failure is due to reasonable cause and the
related projects will continue to proceed
with due diligence.
(ii). Qualifying issuer must redeem all of the
nonqualifying bonds within 90 days after
the end of the extended or unextended
period.
Federal income tax credit for clean renewable energy
bonds
A. GENERAL DESCRIPTION. The Federal Internal Revenue
Code provides an income tax credit in the amount of a portion
of the clean renewable energy bonds’ nonrefundable
outstanding face amount which will permit issuance with a
specified maturity or redemption date without discount and
without interest cost. IRC §54; IRC §54C; Notice 2007-26,
2007-14 IRB 870; Notice 2009-15, 2009-6 IRB 449; Notice
2009-33; IRS Announcement 2010-54.
B. ELIGIBLE TAXPAYERS.
renewable energy bonds.
Taxpayer holders of clean
C. QUALIFYING ACTIVITY. Taxpayer must hold clean
renewable energy bonds. A clean renewable energy bond is a
registered bond issued by a qualifying issuer under the
national clean renewable energy bond limitation, 95% or more
of the proceeds of the issue used for capital expenditures
incurred by government body or a mutual or cooperative
electric company for one or more qualifying renewable energy
projects. Qualifying renewable energy projects are facilities
that qualify for the IRC §45(d) renewable electricity
production credit. Qualifying issuers are (1) public power
providers, (2) cooperative electric companies, (3) government
bodies, (4) not-for-profit electric utilities that have received a
loan or loan guarantee under the Rural Electrification Act of
1936 (7 USC §901-950b), and (5) clean renewable energy
bond lenders. A clean renewable energy bond lender is a
cooperative that is owned by, or has outstanding loans to, 100
or more cooperative electric companies and was in existence
on Feb. 1, 2002, or any affiliated entity controlled by the
cooperative.
1.
2.
3.
4.
Qualifying renewable energy project do not include
refined coal production facilities under IRC
§45(d)(8) and Indian coal production facilities under
IRC §45(d)(10).
Qualifying renewable energy projects must be
owned by a government body, a public power
provider, or a cooperative electric company.
Qualifying renewable energy projects may be
refinanced with proceeds of a clean renewable
energy bond only if the indebtedness being
refinanced (including any obligation directly or
indirectly refinanced by that indebtedness) was
originally incurred after Aug. 8, 2005.
Qualifying issuer must reasonably expect that : (1) at
least 95% of the proceeds of the issue will be spent
for one or more qualifying projects within the 5-year
period beginning on the date of issuance of the clean
renewable energy bond; (2) a binding commitment
with a third party to spend at least 10% of the
proceeds of the issue will be incurred within the 6month period beginning on the date of issuance of
the clean renewable energy bond on the date of the
loan of those proceeds to more than one borrower;
D. INCENTIVE AMOUNTS. The tax credit amount is the
product of the tax credit rate determined by IRS for the day on
which that bond was sold, multiplied by the bond's
outstanding face amount. The tax credit rate for any day is the
tax credit rate which IRS estimates will permit the issuance of
clean renewable energy bonds with a specified maturity or
redemption date without discount and without interest cost to
the qualifying issuer. The applicable credit rate for a tax
credit bond on its sale date is the tax credit rate published for
that date by the Bureau of Public Debt on its Internet site for
State and Local Government Series securities.
1.
2.
The tax credit for new clean renewable energy bonds
is 70% of the amount that would otherwise be
allowable under IRC §54A(b).
The tax credit rate will apply to the first day on
which there is a binding, written contract for the sale
or exchange of the bond.
E. INCENTIVE LIMITS. The maximum annual tax credit
allowable is the excess of Taxpayer's regular tax and AMT
liability, over tax credits allowed under Part IV of subchapter
A tax credit provisions. The nationwide maximum aggregate
tax credit amount is $1.2 billion, with an additional $1.6
billion authorized in 2009 for clean renewable energy bonds.
The nationwide maximum aggregate tax credit amount for
qualifying borrowers that are governmental bodies is $800
million. The tax credit is nonrefundable.
F. INCENTIVE TIMEFRAME.
The tax credit for clean
renewable energy bonds expired December 31, 2009.
1.
An application for an allocation of the new clean
renewable energy bond limitation must be prepared
and submitted in accordance with the requirements
set forth in Notice 2009-33, 2009-17 IRB 865 . The
application for new clean renewable energy bond
limitation must have been filed with the IRS by
August 4, 2009.
G. MISCELLANEOUS.
1.
2.
The tax credit must be included in gross income, and
treated as interest income.
Qualifying projects are subject to the requirements
of subchapter IV of chapter 31 of title 40 of the
United States Code that the minimum wage paid
1.
must be the average local wage (i.e., the “DavisBacon Act” prevailing wage requirements), for
bonds issued after February 17, 2009.
2.
00.17
3.
Federal income tax credit for qualifying energy
conservation bonds
A. GENERAL DESCRIPTION. The Federal Internal Revenue
Code provides an income tax credit in the amount of 70% of a
portion of the qualifying energy conservation bonds’
nonrefundable outstanding face amount which will permit
issuance with a specified maturity or redemption date without
discount and without interest cost. IRC §54D; Notice 200929, 2009-16 IRB 849; Notice 2012-44, 2012-28 IRB.
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer holders of qualifying energy conservation bonds.
1.
The IRS must allocate qualifying energy
conservation bonds among the states in proportion to
the state’s population.
C. QUALIFYING ACTIVITY. Taxpayer must hold qualifying
energy conservation bonds. A qualifying energy conservation
bond must be issued and designated by a state or local
government. All of the qualifying energy conservation bond
issue’s available project proceeds must be used for capital
expenditures for one or more qualifying conservation
purposes. Qualifying conservation purposes include (1)
capital expenditures incurred for purposes of reducing energy
consumption in publicly-owned buildings by at least 20%;
implementing green community programs (including the use
of loans, grants or other repayment mechanisms to implement
those programs); rural development involving the production
of electricity from renewable energy resources; or any
qualifying facility as determined under IRC §45(d) without
regard to any placed in service date; (2) expenditures with
respect to research facilities and research grants that support
research in: the development of cellulosic ethanol or other
nonfossil fuels; technologies for the capture and sequestration
of carbon dioxide produced through the use of fossil fuels;
increasing the efficiency of existing technologies for
producing nonfossil fuels; automobile battery technologies
and other technologies to reduce fossil fuel consumption in
transportation; or technologies to reduce energy use in
buildings; (3) mass commuting facilities and related facilities
that reduce the consumption of energy, including expenditures
to reduce pollution from vehicles used for mass commuting;
(4) demonstration projects designed to promote the
commercialization of: green building technology; conversion
of agricultural waste for use in the production of fuel or
otherwise; advanced battery manufacturing technologies;
technologies to reduce peak use of electricity; or technologies
for the capture and sequestration of carbon dioxide emitted
from combusting fossil fuels in order to produce electricity;
(5) public education campaigns to promote energy efficiency.
Qualifying conservation purposes do not include
refined coal production or Indian coal production
facilities.
Qualifying publicly-owned building are buildings
that are owned by a State or local or any
instrumentality thereof for Federal tax purposes.
Qualifying green community programs are programs
to promote one or more of the purposes of energy
conservation, energy efficiency, or environmental
conservation initiatives relating to energy
consumption, broadly construed, and must involve
property or financing programs available to the
general public.
D. INCENTIVE AMOUNTS. The tax credit amount is 70% of a
portion of the qualifying energy conservation bonds’
nonrefundable outstanding face amount which will permit
issuance with a specified maturity or redemption date without
discount and without interest cost.
E. INCENTIVE LIMITS. The nationwide maximum cumulative
tax credit amount is $3.2 billion.
F. INCENTIVE TIMEFRAME.
G. MISCELLANEOUS.
1.
2.
00.18
The tax credit is includible in gross income, and is
treated as interest income.
Qualifying projects are subject to the requirements
of subchapter IV of chapter 31 of title 40 of the
United States Code that the minimum wage paid
must be the average local wage (i.e., the “DavisBacon Act” prevailing wage requirements).
Federal personal income tax credit for nonbusiness
energy property
A. GENERAL DESCRIPTION. The Federal Internal Revenue
Code provides a personal income tax credit in the amount of
10% of the costs for qualifying building envelope components
or residential energy property expenditures. IRC §25C; IRS
Notice 2006-26, 2006-1 CB 622; IRS Notice 2009-53, 200925 IRB 1095; INFO 2009-0231; INFO 2009-0239; INFO
2009-0243; INFO 2010-0098; INFO 2010-0105; CONEX120518-10;
CONEX-131502-10;
CONEX-145283-10;
CONEX-140778-10; INFO 2011-0001; INFO 2011-0006;
INFO 2011-0015; INFO 2011-0016; INFO 2011-0048;
Announcement 2011-73; PLR 201130003 (EXPIRED).
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer individuals installing energy efficient property in the
Taxpayer's principal residence.
1.
The tax credit may be allocated among Taxpayers in
jointly occupied units, Taxpayer tenant-owners in a
2.
cooperative or Taxpayer members
condominium.
Taxpayer may not be a cooperative.
of
a
C. QUALIFYING ACTIVITY. Taxpayer must install energy
efficient property in Taxpayer's principal residence.
Qualifying energy efficient property is energy efficiency
improvements to the building envelope and residential energy
property expenditures. Qualifying energy efficient property
must be reasonably expected to remain in use for 5 years.
Qualifying energy efficiency improvements to the building
envelope are any energy efficient building envelope
component that meets the prescriptive criteria for that
component established by the 2000 International Energy
Conservation Code, as supplemented and as in effect on Aug.
8, 2005; or a metal roof with appropriate pigmented coatings
or an asphalt roof with appropriate cooling granules that meets
the Energy Star program requirements. Residential energy
property includes: (1) an advanced main air circulating fan
used in a natural gas, propane, or oil furnace and that has an
annual electricity use of no more than 2% of the total annual
energy use of the furnace (as determined in the standard US
Department of Energy test procedures); (2) a qualifying
natural gas furnace that achieves an annual fuel utilization
efficiency rate of not less than 95; (3) a qualifying propane
furnace that achieves an annual fuel utilization efficiency rate
of not less than 95; (4) a qualifying oil furnace that achieves
an annual fuel utilization efficiency rate of not less than 90;
(5) a qualifying natural gas hot water boiler that achieves an
annual fuel utilization efficiency rate of not less than 90; (6) a
qualifying propane hot water boiler that achieves an annual
fuel utilization efficiency rate of not less than 90; (6) a
qualifying oil hot water boiler that achieves an annual fuel
utilization efficiency rate of not less than 90; (7) an electric
heat pump water heater that yields an energy factor of at least
2.0 in the standard DOE test procedure; (8) an electric heat
pump that achieves the highest efficiency tier established by
the Consortium for Energy Efficiency, as in effect on Jan. 1,
2009. For split heat pumps, these standards are a seasonal
energy efficiency ratio (SEER) greater than or equal to 15,
energy efficiency ratio (EER) greater than or equal to 12.5,
and heating seasonal performance factor (HSPF) greater than
or equal to 8.5. For packaged heat pumps, the standards are a
SEER greater than or equal to 14, EER greater than or equal to
12, and HSPF greater than or equal to 8.0; (9) a central air
conditioner that achieves the highest efficiency tier established
by the Consortium for Energy Efficiency, as in effect on Jan.
1, 2009. For split systems, these standards are a SEER greater
than or equal to 16 and EER greater than or equal to 12; (10)
a natural gas, propane, or oil water heater that has either an
energy factor of at least 0.82 or a thermal efficiency of at least
90%; and (11) a biomass fuel stove that burns biomass fuel to
heat or to heat water for use in a residence, and that has a
thermal efficiency rating of at least 75%, as measured using a
lower heating value. Biomass fuel is any plant-derived fuel
available on a renewable or recurring basis, including
agricultural crops and trees, wood and wood waste and
residues (including aquatic plants), grasses, residues, and
fibers.
1.
2.
3.
4.
5.
6.
7.
Building envelope component is: (1) any insulation
material or system that is specifically and primarily
designed to reduce the dwelling unit's heat loss or
gain when installed in or on the dwelling unit and
meets the prescriptive criteria for that material or
system established by the 2009 International Energy
Conservation Code (including supplements), as in
effect on Feb. 17, 2009; (2) exterior windows
(including skylights); (3) exterior doors; and (4) any
metal roof or asphalt roof installed on a dwelling
unit, but only if the roof has appropriate pigmented
coatings or cooling granules that are specifically and
primarily designed to reduce the dwelling unit's heat
gain.
Building envelope component does not include
components with a principal purpose is to serve any
function unrelated to the reduction of heat loss or
gain or if production costs attributable to features
other than those that reduce heat loss or gain exceed
production costs attributable to features that reduce
heat loss or gain.
Building envelope component does not include
exterior windows, skylights, and doors with a U
factor greater than 0.30 and a SHGC greater than
0.30.
Qualifying metal roofs must have appropriate
pigmented coatings that are specifically and
primarily designed to reduce the heat gain of a
dwelling unit when installed on the dwelling unit;
and meets or exceeds the Energy Star program
requirements in effect at the time of installation.
Building envelope component does not include
property that provides structural support or a
finished surface, such as drywall or siding, including
vinyl siding.
Building envelope component or energy property
may be certified by its manufacturer if installed in a
manner that is consistent with the manufacturer's
certification. The certification statement may be
provided by including a written copy of the
statement with the packaging of the component or
property, in printable form on the manufacturer's
website, or in any other manner that will permit
Taxpayer to retain the certification statement for tax
recordkeeping purposes.
Taxpayer may not rely on an Energy Star label for
certifying qualifying property.
D. INCENTIVE AMOUNTS. The tax credit amount is 10%
2011 of the cost of qualifying building envelope components
or residential energy property expenditures during the taxable
year.
1.
2.
Cost of qualifying building envelope components
includes costs incurred to purchase the components,
and not for amounts paid or incurred for onsite
preparation, assembly or installation.
Cost of qualifying energy property includes the cost
of the property and labor costs properly allocable to
3.
the onsite preparation, assembly, or original
installation of the property.
Cost of qualifying energy property includes only the
portion of the cost for nonbusiness purpose if less
than 80% of the use of an item is for nonbusiness
purposes.
E. INCENTIVE LIMITS.
amount is $500.
The maximum lifetime tax credit
generation efficiency of greater than 30%, and generates at
least 0.5 kw of electricity. Qualifying small wind energy
property is property that uses a wind turbine to generate
electricity. Qualifying geothermal heat pump property is
property that uses the ground or ground water as a thermal
energy source to heat the dwelling unit or as a thermal energy
sink to cool the dwelling unit, and meets the Energy Star
program requirements in effect when the expenditure is made.
1.
F. INCENTIVE TIMEFRAME. The tax credit expires December
31, 2013.
1.
Cost of qualifying energy property is made when the
original installation is completed. Cost of qualifying
energy property in connection with the construction
or reconstruction of a structure is treated as made
when Taxpayer's original use of the constructed or
reconstructed structure begins.
2.
3.
G. MISCELLANEOUS.
1.
The basis increase of the property which would
result from the cost of qualifying energy property is
reduced by the amount of the tax credit.
D. INCENTIVE AMOUNTS. The tax credit amount is 30% of
the qualifying property costs.
1.
00.19
Federal personal income tax credit for residential
energy efficient property
A. GENERAL DESCRIPTION. The Federal Internal Revenue
Code provides a personal income tax credit in the amount of
30% the cost of residential energy efficient property, including
qualifying solar electric property, qualifying solar water
heating property, qualifying fuel cell property, qualifying
small wind energy property, and qualifying geothermal heat
pump property. IRC §25D; IRS Notice 2009-41; INFO 20090240; CONEX – 152472-09; INFO 2010-0036; PLR
201035003; INFO 2010-0085; INFO 2010-0111; INFO 20100133; INFO 2010-0232; INFO 2011-0010; INFO 2011-0019;
INFO 2011-0031; INFO 2011-0059; PLR 201130003.
2.
3.
4.
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer individuals installing residential energy efficient
property.
5.
C. QUALIFYING ACTIVITY. Taxpayer must install residential
energy efficient property.
Residential energy efficient
property includes solar electric, solar hot water, fuel cell,
small wind energy, and geothermal heat pump. Qualifying
solar electric property uses solar energy to generate electricity
for use in a dwelling unit. Qualifying solar water heating
property heats water for use in a dwelling unit, if at least half
of the energy used by the property for that purpose is derived
from the sun. Qualifying fuel cell property is an integrated
system comprised of a fuel cell stack assembly and associated
balance of plant components that converts a fuel into
electricity using electrochemical means, has an electricity-only
Qualifying solar property includes solar panel or
other property installed as a roof (or portion of a
roof) even if it is a structural component of the
structure on which it is installed.
Qualifying solar water heating property must be
certified for performance by the Solar Rating
Certification Corporation or a comparable entity
endorsed by the government of the state in which the
property is installed.
Qualifying solar water heating property does not
include expenditures properly allocable to a
swimming pool, hot tub, or any other energy-storage
medium that has a function other than energy
storage.
Qualifying property costs include labor costs
properly allocable to the on-site preparation,
assembly, or original installation of qualifying
property, and expenditures for piping or wiring to
interconnect qualifying property to the dwelling
unit.
Qualifying property costs include expenditures that
are made from subsidized energy financing.
Subsidized energy financing is financing provided
under a federal, state, or local program, a principal
purpose of which is to provide subsidized financing
for projects designed to conserve or produce energy.
Qualifying property costs include only the portion of
the cost for nonbusiness purpose if less than 80% of
the use of an item is for nonbusiness purposes.
Qualifying property costs does not include an
expenditures financed with an energy conservation
subsidy that a public utility provides to a customer
to buy or install an energy conservation measure,
which is excluded from income.
Qualifying property costs include amount of any
Renewable Energy Credits payments from public
utilities.
E. INCENTIVE LIMITS. The maximum annual tax credit
amount is: $500 for each 0.5 kilowatt of capacity for
qualifying fuel cell property.
1.
For qualifying fuel cell property in a dwelling unit
that is jointly occupied and used during any calendar
year as a residence by two or more individuals, the
maximum tax credit amount for all the individuals is
$1,667 for each 0.5 kw of capacity of qualifying fuel
cell property.
F. INCENTIVE TIMEFRAME. The tax credit expires December
31, 2016.
1.
2.
Qualifying property costs are made when the
original installation is completed.
Qualifying property costs related to the construction
or reconstruction of a structure are made when
Taxpayer begins using the structure.
G. MISCELLANEOUS.
1.
2.
3.
4.
5.
Taxpayer who qualifies for both the nonbusiness
energy property credit in IRC §25C and the tax
credit may claim both credits.
The tax credit can be claimed against the AMT.
The basis increase of the property which would
result from the qualifying property costs is reduced
by the amount of the tax credit.
The tax credit is reduced by the amount of
nontaxable energy conservation subsidy received
under IRC §136. Because state-provided incentives
are includable in gross income, Taxpayer is not
required to reduce the amount of his or her qualified
expenditures qualifying for the tax credit.
If Taxpayer uses more than 20 percent of qualified
property for business purposes, the Taxpayer can
only take the portion of the expenditures that is
properly allocable to use for nonbusiness purposes.
Taxpayer may be eligible for the IRC §48 business
credit for the cost of qualifying property allocable to
Taxpayer’s use of the system in a trade or business,
or for the production of income.
01.
Alabama State Tax Incentives for Renewable Energy
and Green Building
01.01
Alabama state income or excise tax credit for
alternative energy electricity production facilities
A. GENERAL DESCRIPTION. Alabama provides an income or
excise tax credit over 20 years in the amount of 5% of the
capital invested in qualifying facilities, including alternative
energy electricity production facilities. Ala. Code §40-18-190
et seq.; Ala. Admin. Code §810-2-7; Ala. Dept. of Rev.,
Revenue Ruling No. 01-013.
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer utilities or utility investing companies investing in
the acquisition, construction, installation and equipping of
alternative energy electricity production facilities.
1.
Taxpayer must be certified by the AL Department of
Revenue.
A. GENERAL DESCRIPTION. Alabama provides state property
tax abatements in the amount of 100% of the tax on plant,
property, and facilities for owners of alternative energy
production facilities. Ala. Code §40-9B-4.
B. ELIGIBLE TAXPAYERS. Taxpayer owners of alternative
energy production facilities which are utilities, electric
cooperatives, municipal electric authorities; or entities in
which one or more of the foregoing owns an interest.
C. QUALIFYING ACTIVITY. Taxpayer must own alternative
energy production facilities. An alternative energy production
facility is any plant, property, or facility that produces
electricity from alternative energy resources and has capital
costs of at least $100 million, or hydropower production and
has capital costs of at least $5 million.
D. INCENTIVE AMOUNTS. The tax abatement amount is
100% of the property tax due.
E. INCENTIVE LIMITS.
C. QUALIFYING ACTIVITY.
Taxpayer must invest in
alternative energy electricity production facilities. Alternative
energy electricity production facilities are facilities that
produce electricity from renewable resources. Renewable
energy resources are wind, biomass, black liquor, tidal or
ocean current, geothermal, solar energy, small irrigation,
municipal solid waste, hydropower, and hydrogen when
derived or produced from some other renewable energy
resource.
1.
2.
Alternative energy electricity production facilities
must have capital costs of $100 million.
Qualifying hydropower production facilities must
have capital costs of $5 million.
D. INCENTIVE AMOUNTS. The annual tax credit amount is
5% percent of the capital costs of the qualifying project in
each of the 20 years commencing with the year during which
the qualifying project is placed in service.
F. INCENTIVE TIMEFRAME. The tax abatement is available
January 1, 2012 and expires December 31, 2018.
G. MISCELLANEOUS.
01.03
Alabama state tax deduction for wood-burning
heating systems
A. GENERAL DESCRIPTION. Alabama provides an individual
income tax deduction in the amount of 100% the cost of
converting an existing residential gas or electric heating
system to a qualifying wood-burning heating system. Ala.
Code § 40-18-15(16).
B. ELIGIBLE TAXPAYERS. The tax deduction is available to
Taxpayer individuals owning converted heating systems.
E. INCENTIVE LIMITS. The maximum tax credit allowed to
be claimed is 80% of the tax due, for a qualifying alternative
energy resource project. The maximum tax credit allowed to
be claimed is 60% of the tax due, for qualifying hydropower
production.
C. QUALIFYING ACTIVITY. Taxpayer must convert an
existing gas or electric heating system to a qualifying woodburning heating system. Qualifying wood-burning heating
systems must be used as the primary energy source for heating
a home.
F. INCENTIVE TIMEFRAME. The tax credit period is 20 years.
The tax credit is available January 1, 2012 and expires
December 31, 2015.
D. INCENTIVE AMOUNTS. The tax deduction amount is 100%
of the total cost of purchase and installation for the conversion
from gas or electricity to wood.
G. MISCELLANEOUS.
E. INCENTIVE LIMITS.
01.02
Alabama state property tax abatement for alternative
energy production facilities
F. INCENTIVE TIMEFRAME. The tax deduction must be taken
for the taxable year during which the conversion was
completed.
G. MISCELLANEOUS.
1.
09.
Connecticut State Tax Incentives for Renewable
Energy and Green Building
09.01
Connecticut state sales and use tax exemption for solar
and geothermal systems
2.
A. GENERAL DESCRIPTION. Connecticut provides a sales and
use tax exemption in the amount of 100% of the tax on solar
and geothermal systems. Conn. Gen. Stat. §12-412 (117); SN
2007 (7) H.B. 5435 (2010); Special Notice 2010(9.1).
3.
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer purchasers of qualifying solar and geothermal
systems equipment. Taxpayer purchaser is a property owner,
tenant, or contractor.
1.
4.
Taxpayer purchaser must present certificate CERT140, Solar Heating Systems, Solar Electricity
Generating Systems, and Ice Storage Cooling
Systems, to the seller when purchasing the property.
C. QUALIFYING ACTIVITY.
Taxpayer must purchase
qualifying solar and geothermal systems equipment.
Qualifying solar and geothermal systems equipment includes
passive and active solar water-heating systems, passive and
active solar space-heating systems, solar-electric systems, and
geothermal resource systems. Passive solar water or space
heating system is a system that collects the heat from solar
energy for heating water or air in an occupied space and
delivers it to where it is needed by utilizing natural
convection, conduction, and radiation without the use of
powered devices such as fans and pumps. Active solar water
or space heating system is a system that collects the heat from
solar energy for heating water or air in an occupied space and
delivers it to where it is needed through the use of powered
equipment such as circulating pumps or fans. Qualifying solar
systems equipment include photovoltaic modules and arrays,
mounting racks and hardware, and devices used to control the
operation of a solar energy system; electrical power
conditioning equipment such as inverters, converters, charge
controllers, voltmeter, and ammeter monitors; solar thermal
collectors; a dark-colored water tank exposed to sunlight;
electrical or mechanical equipment to increase the usable heat
in an active solar system such as pumps or fans; and
rechargeable batteries such as lead acid batteries and nickel
cadmium batteries used to store electricity. Geothermal
systems are systems that utilizes energy below the ground
surface as a source/sink to heat or cool buildings. Geothermal
systems equipment include geothermal heat pumps, including
water-to-water and water-to-air type pumps; piping buried
underground; and pumps to move water within pipes buried
underground. Qualifying activity begins when research
activities are performed and ends when the product is ready
for delivery or storage, including overpacking and crating.
5.
6.
7.
Qualifying solar and geothermal systems equipment
includes sales of services relating to the installation
of eligible systems.
Qualifying solar and geothermal systems equipment
includes ice storage systems used for cooling by a
utility ratepayer who is billed by the utility on a
time-of-service metering basis. Ice storage cooling
system is a system that produces ice during off-peak
electricity demand periods to use for space cooling
during peak periods. Qualifying ice storage systems
include ice making chillers; insulated storage tanks
for ice; and piping, pumps, and controls.
Qualifying solar and geothermal systems equipment
includes machinery, equipment, tools, materials,
supplies and fuel used directly in the renewable
energy and clean energy technology industries.
Qualifying solar and geothermal systems equipment
includes all activities performed in research,
development, testing, and manufacturing.
Qualifying solar and geothermal systems equipment
does not include real property, permanently affixed
building fixtures that are not integral and necessary
to any of the qualifying systems.
Qualifying solar and geothermal systems equipment
does not include items used predominantly in
administration, general management, or any other
activity that does not constitute the renewable
energy and clean energy technology industries.
Qualifying solar and geothermal systems equipment
does not include any services, real property, or
repair or replacement parts.
D. INCENTIVE AMOUNTS.
100% of the sales tax due.
The tax exemption amount is
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME.
G. MISCELLANEOUS.
09.02
Connecticut state corporate business tax exemption
for alternative energy and motor vehicle systems
A. GENERAL DESCRIPTION.
Connecticut provides a
corporate business tax exemption in the amount of 100% of
the tax on qualifying businesses engaged in the research,
design, manufacture, sale or installation of alternative energy
systems or motor vehicles powered by electricity, natural gas
or solar energy. Conn. Gen. Stat. §12-214(a).
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer corporations engaged in the research, design,
manufacture, sale or installation of alternative energy systems
or motor vehicles powered by electricity, natural gas or solar
energy.
1.
Taxpayer must have shares owned by a single
individual or a married couple, has gross annual
revenues for the preceding income year not
exceeding $100 million and has 75% of the gross
annual revenues derived from alternate energy
systems or alternate-fuel motor vehicles.
C. QUALIFYING ACTIVITY.
Taxpayer must engage in
research, design, manufacture, sale or installation of
alternative energy systems or qualifying motor vehicles.
Alternative energy systems are those which use solar, wind,
water or biomass energy in producing space heating or
cooling, water heating, or electrical generation. Qualifying
motor vehicles must be powered by electricity, natural gas or
solar energy.
1.
Alternative energy systems do not include woodburning stoves.
D. INCENTIVE AMOUNTS. The tax exemption amount is
100% of the business tax due.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME.
G. MISCELLANEOUS.
09.04
Connecticut state personal income tax exclusion for
state rebates for efficient furnaces and boilers
A. GENERAL DESCRIPTION. Connecticut provides a personal
income tax exclusion in the amount of the $500 rebate for
efficient furnaces and boilers from the CT Office of Policy
and Management. Conn. Gen. Stat. §16-46e(d).
B. ELIGIBLE TAXPAYERS. The tax exclusion is available to
Taxpayer individuals receiving the $500 rebate for efficient
furnaces and boilers from the CT Office of Policy and
Management.
F. INCENTIVE TIMEFRAME.
C. QUALIFYING ACTIVITY. Taxpayer must receive the $500
rebate for efficient furnaces and boilers from the CT Office of
Policy and Management.
G. MISCELLANEOUS.
D. INCENTIVE AMOUNTS. The tax exclusion amount is $500.
E. INCENTIVE LIMITS.
E. INCENTIVE LIMITS.
09.03
Connecticut state sales tax exemption for fuel cell
manufacturing facilities
A. GENERAL DESCRIPTION. Connecticut provides a sales tax
exemption in the amount of 100% of the tax on the sales to
and the storage, use or other consumption by a fuel cell
manufacturing facility of machinery and equipment. Conn.
Gen. Stat. §12-412(113).
B. ELIGIBLE TAXPAYERS. Taxpayer fuel cell manufacturing
facilities purchasing qualifying machinery and equipment. A
fuel cell manufacturing facility is the portion of a plant,
building, or other real property improvement used for the
manufacturing of fuel cell parts or components or for the
significant overhauling or rebuilding of such parts or
components on a factory basis.
C. QUALIFYING ACTIVITY.
Taxpayer must purchase
qualifying machinery and equipment. Fuel cell is a device that
directly or indirectly produces electricity directly from
hydrogen or hydrocarbon fuel through a noncombustive
electro-chemical process.
Machinery and equipment is
tangible personal property, which is installed in a fuel cell
manufacturing facility operated by a fuel cell manufacturer
and the predominant use of which is the manufacturing of fuel
cells.
D. INCENTIVE AMOUNTS.
100% of the sales tax due.
The tax exemption amount is
F. INCENTIVE TIMEFRAME.
G. MISCELLANEOUS.
09.05
Connecticut state income tax exemption for sales or
import of alternative fuel commercial heating oil
A. GENERAL DESCRIPTION. Connecticut provides an income
tax exemption in the amount of 100% of the tax for sales or
import of alternative fuel commercial heating oil. Conn. Gen.
Stat. §12-587; Connecticut Special Notice 2006(2),
06/19/2006.
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer seller and importers of alternative fuel commercial
heating oil.
C. QUALIFYING ACTIVITY. Taxpayer must sell or import
qualifying commercial heating oil blend.
Qualifying
commercial heating oil blend is heating oil containing not less
than 10% of alternative fuels derived from agricultural
produce, food waste, waste vegetable oil or municipal solid
waste, including, but not limited to, biodiesel or low sulfur
dyed diesel fuel.
D. INCENTIVE AMOUNTS. The tax exemption amount is
100% of the gross earnings on the sale or import qualifying
commercial heating oil blend.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME.
G. MISCELLANEOUS.
renovation projects.
Qualifying costs are the amounts
chargeable to a capital account, including, but not limited to:
(1) construction or rehabilitation costs; (2) commissioning
costs; (3) architectural and engineering fees allocable to
construction or rehabilitation, including energy modeling; (4)
site costs, such as temporary electric wiring, scaffolding,
demolition costs and fencing and security facilities; and (5)
costs of carpeting, partitions, walls and wall coverings,
ceilings, lighting, plumbing, electrical wiring, mechanical,
heating, cooling and ventilation.
1.
09.06
Connecticut state income tax credit for energy
efficient green building
A. GENERAL DESCRIPTION. Connecticut provides an income
tax credit in the amount of 5-11% of allowable costs of energy
efficient green building projects. Conn. Gen. Stat. § 12217mm; L. 2009 09-8 §7(b).
2.
B. ELIGIBLE TAXPAYERS. Taxpayer owners constructing or
renovating eligible green buildings projects.
1.
2.
3.
4.
Taxpayer must be certified by the CT Secretary of
the Office of Policy and Management.
Taxpayer must be certified by an architect or
professional engineer and accredited through the
LEED Accredited Professional Program.
Taxpayer may assign or transfer the tax credit to
Taxpayer transferees.
Taxpayer subsequent successor in interest to the
property may claim the tax credit if the deed
transferring the property assigns the subsequent
successor such right and the deed does not specify
that the seller shall retain the right to claim such tax
credit.
C. QUALIFYING ACTIVITY. Taxpayer must construct or
renovate energy efficient green buildings projects. Green
buildings projects are LEED certified Gold or better buildings.
1.
2.
Energy efficient green buildings project must not
have energy use that exceeds 70% of the energy use
permitted by the state building code for new
construction.
Energy efficient green buildings
project must not have energy use that exceeds 80%
of the energy use permitted by the state building
code for a renovation project.
Energy efficient green buildings project must use
equipment and appliances that meet Energy Star
standards.
D. INCENTIVE AMOUNTS. The tax credit amount is equal to
the tax credit percentage multiplied by the qualifying costs.
The base tax credit percentage amounts are: 5% for LEED
Certified Gold core and shell or commercial interior projects;
7% for LEED Certified Platinum core and shell or commercial
interior projects; 8% for LEED Certified Gold new
construction or major renovation projects; and 10.5% for
LEED Certified Platinum new construction or major
A 0.5% tax credit percentage increase is allowed for
projects that are: (1) mixed-use developments, (2)
located in a brownfield or enterprise zone, (3) does
not require a sewer extension of more than 1/8 of a
mile, or (4) located within 1/4 of a mile walking
distance of publicly available bus transit service or
within 1/2 of a mile walking distance of adequate
rail, light rail, streetcar or ferry transit service.
Qualifying costs do not include the purchase of land,
any remediation costs and the cost of telephone
systems or computers.
E. INCENTIVE LIMITS. The maximum annual tax credit
amount is the tax credit for allowable costs of $250 per square
foot for new construction and of $150 per square foot for
renovation or rehabilitation of a building; or 25% of allowable
costs. The statewide maximum annual tax credit amount is
$25 million.
F. INCENTIVE TIMEFRAME. The tax credit is available
starting January 1, 2012 for buildings placed in service on or
after January 1, 2010. Unused tax credit may be carried
forward 5 years.
G. MISCELLANEOUS.
09.07
Connecticut state property
renewable energy systems
tax
exemption
for
A. GENERAL DESCRIPTION. Connecticut provides a property
tax exemption assessment in the amount of 100% of the cost
for Class I renewable energy systems and hydropower
facilities that generate electricity for private residential use
and commercial or industrial purposes. Conn. Gen. Stat. §1281(56),(57); Conn. Gen. Stat. § 16-1(26),(27); (P.A. 13-61).
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer owners of Class I renewable energy systems and
hydropower facilities.
C. QUALIFYING ACTIVITY. Taxpayer must own Class I
renewable energy source residential property or
commercial/industrial property. Class I renewable energy
source is energy or electrical generation derived from solar
power, wind power, a fuel cell, methane gas from landfills,
ocean thermal power, wave or tidal power, low emission
advanced renewable energy conversion technologies, a run-of-
the-river hydropower facility, or a sustainable biomass facility
with an average emission rate of equal to or less than .075
pounds of nitrogen oxides per million BTU of heat input for
the previous calendar quarter, a sustainable biomass facility
with a capacity of less than 500 kilowatts or any distributed
electrical generation, generated from a Class I renewable
energy source. Active solar energy heating or cooling system
is equipment which (1) provides for the collection, transfer,
storage and use of incident solar energy for water heating,
space heating or cooling which absent such solar energy
system would require a conventional energy resource, such as
petroleum products, natural gas or electricity, (2) employs
mechanical means such as fans or pumps to transfer energy,
and (3) meets standards established by regulation by the CT
Office of Policy and Management.
1.
2.
3.
Class I renewable energy sources residential
property must serve single-family homes or multifamily dwellings limited to four units to be eligible.
Class I renewable energy sources commercial or
industrial property must be for commercial or
industrial purposes, and the nameplate capacity of
such source or facility must not exceed the load for
the location where such generation or displacement
is located.
Qualifying hydropower facilities must have a
generating capacity of not more than 5 megawatts
and must not cause an appreciable change in the
river flow.
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer purchasers of residential energy conservation and
weatherization products.
C. QUALIFYING ACTIVITY.
Taxpayer must purchase
residential energy conservation and weatherization products.
Residential energy conservation and weatherization products
include compact fluorescent light bulbs, programmable
thermostats, window film, caulking, window and door weather
strips, insulation, water heater blankets, water heaters, natural
gas and propane furnaces and boilers that meet the federal
Energy Star standard, windows and doors that meet the federal
Energy Star standard, oil furnaces and boilers that are not less
than 84% efficient and ground-source heat pumps that meet
the minimum federal energy efficiency rating.
D. INCENTIVE AMOUNTS. The tax exemption amount is
100% sales and use tax due.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME.
G. MISCELLANEOUS.
09.09
Connecticut state corporate income tax credit for
energy conservation programs serving low-income
persons
D. INCENTIVE AMOUNTS. The tax exemption amount is
100% of the property tax due.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME. An exemption claim must be
filed with the assessor or board of assessors in the town in
which the property is placed on or before November 1st in the
applicable assessment year.
1.
2.
Applications required if major alterations are made
to the renewable energy system.
For projects installed prior to 2014, local
municipality must approve such exemption.
G. MISCELLANEOUS.
09.08
Connecticut state sales and use tax exemption for
residential energy-efficient products
A. GENERAL DESCRIPTION. Connecticut provides a sales and
use tax exemption in the amount of 100% the tax on
residential energy conservation and weatherization products.
Conn. Gen. Stat. §12-412k.
A. GENERAL DESCRIPTION.
Connecticut provides a
corporate income tax credit in the amount of 100% of the
amount invested in energy conservation programs serving
low-income persons. Conn. Gen. Stat. §12-635.
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer corporations investing in eligible energy
conservation projects serving low-income persons.
C. QUALIFYING ACTIVITY. Taxpayer must invest in eligible
energy conservation projects serving low-income persons.
Energy conservation projects must be directed toward
properties occupied by persons, at least 75% of whom are at
an income level not exceeding 150% of the poverty level for
the year next preceding the year during which such tax credit
is to be granted, or properties owned or occupied by charitable
corporations, foundations, trusts or other entities.
D. INCENTIVE AMOUNTS. The tax credit amount is 100% of
amount invested.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME.
G. MISCELLANEOUS.
10.
Delaware State Tax Incentives for Renewable Energy
and Green Building
10.01
Delaware state income tax credit for new clean energy
manufacturing jobs
A. GENERAL DESCRIPTION. Delaware provides a corporate
income tax credit in the amount of $750 per job created in
clean energy manufacturing. Delaware Code Title 30, Chapter
20; S.B. 40 (2011).
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer manufacturers creating new jobs in clean
manufacturing.
C. QUALIFYING ACTIVITY. Taxpayer must hire five or more
workers and invested at least $200,000 ($40,000 per new
worker) in a qualified facility manufacturing clean energy
technology devices. Clean energy technology device are:
1.
2.
3.
4.
solar power devices, which shall mean devices or
systems that use photovoltaic solar cells to produce
electricity or that use solar energy to heat water;
fuel cells, which shall mean devices or systems that
use an electrochemical generator that converts the
chemical energy of a fuel and an oxidant directly to
electricity;
wind power devices, which shall mean devices or
systems that convert the motion of wind into electric
power; or,
geothermal power devices, which shall mean
devices or systems that use the temperature
differentials between the atmosphere and
subterranean areas to heat or cool buildings or to
heat water.
D. INCENTIVE AMOUNTS. The tax credit amount is $750 per
job and $750 per $100,000 of qualifying investment.
E. INCENTIVE LIMITS.
amount is $500,000
The maximum annual tax credit
F. INCENTIVE TIMEFRAME.
G. MISCELLANEOUS.
District of Columbia State Tax Incentives for
Renewable Energy and Green Building
11.
11.01
District of Columbia property tax exemptions for
cogeneration equipment
A. GENERAL DESCRIPTION. District of Columbia provides
property tax exemptions in the amount of 100% of District tax
on cogeneration equipment. District of Columbia Official
Code §47-1508(a)(12).
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer owners of cogeneration equipment.
C. QUALIFYING ACTIVITY. Taxpayer must own cogeneration
equipment.
Cogeneration equipment is equipment that
produces both electric energy and useful heat energy or steam
energy.
1.
2.
Qualifying cogeneration equipment must serve
developments of more than 1 million square feet.
Qualifying cogeneration equipment must use fuel
already subject to District tax.
D. INCENTIVE AMOUNTS. The tax exemption amount is
100% of the District tax due.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME. The tax exemption is available
starting October 1, 2016.
G. MISCELLANEOUS.
11.02
District of Columbia property tax exemptions for solar
energy systems
A. GENERAL DESCRIPTION. District of Columbia provides
property tax exemptions in the amount of 100% of District tax
on solar energy systems. District of Columbia Official Code
§47-1508(a)(11); District of Columbia Official Code §341431(14); (Law 19-252, 2013).
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer owners of solar energy systems.
C. QUALIFYING ACTIVITY. Taxpayer must own solar energy
systems.
Solar energy system is equipment that use
exclusively solar energy. Solar energy is radiant energy,
direct, diffuse, or reflected, received from the sun at
wavelengths suitable for conversion into thermal, chemical, or
electrical energy, that is collected, generated, or stored for use
at a later time.
D. INCENTIVE AMOUNTS. The tax exemption amount is
100% of the District tax due.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME.
G. MISCELLANEOUS.
12.
Florida State Tax Incentives for Renewable Energy
and Green Building
12.01
Florida state property tax exemption for residential
renewable energy source devices
A. GENERAL DESCRIPTION. Florida provides a property tax
assessment exemption in the amount of 100% the cost of
residential renewable energy source devices. Fla. Stat.
§193.624.
produced from renewable sources and sold to an unrelated
party. Fla. Stat. §220.193; Fla. Dept. of Rev., Regs. §§ 12C1.0191 et seq.; Section 7, Chapter 2012-117, Laws of Florida
(2012).
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer producers and sellers of electricity produced from
renewable energy facilities.
1.
2.
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer owners of qualifying residential renewable energy
source devices.
C. QUALIFYING ACTIVITY. Taxpayer must own residential
renewable energy source devices. A renewable energy source
device is equipment that collects, transmits, stores, or uses
solar energy, wind energy, or energy derived from geothermal
deposits. Renewable energy source devices include: (a) solar
energy collectors, photovoltaic modules, and inverters; (b)
storage tanks and other storage systems, excluding swimming
pools used as storage tanks; (c) rockbeds; (d) thermostats and
other control devices; (e) heat exchange devices; (f) pumps
and fans; (g) roof ponds; (h) freestanding thermal containers;
(i) pipes, ducts, refrigerant handling systems, and other
equipment used to interconnect such systems; (j) windmills
and wind turbines; (k) wind-driven generators; (l) power
conditioning and storage devices that use wind energy to
generate electricity or mechanical forms of energy; and (m)
pipes and other equipment used to transmit hot geothermal
water to a dwelling or structure from a geothermal deposit.
1. Renewable energy source devices does not include
conventional backup systems.
D. INCENTIVE AMOUNTS. The tax exemption amount is
100% of the property tax due.
1.
Renewable energy source devices operating for only
a portion of the year of application for the tax
exemption, must receive a proportionally reduced
tax exemption.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME. Taxpayer must file with the
county property appraiser an application on or before March 1
of the first year such treatment is requested.
G. MISCELLANEOUS.
12.02
Florida state corporate income tax credit for
renewable energy production
A. GENERAL DESCRIPTION. Florida provides a corporate
income tax credit in the amount of $0.01/kWh of electricity
3.
Taxpayer must be certified by the FL Department of
Agriculture and Consumer Services.
Taxpayer partners or members of a pass-through
entity share the tax credit in the same manner as
items of income and expense pass through for
federal income tax purposes. When Taxpayer
allocatee has received the tax credit by a passthrough, the application must identify the Taxpayer
that passed the tax credit through, all Taxpayer
allocatees that received the tax credit, and the
percentage of the tax credit that passes through to
each recipient.
Taxpayer may use the tax credit on a consolidated
return basis up to the amount of tax imposed upon
the consolidated group.
C. QUALIFYING ACTIVITY. Taxpayer must produce and sell
electricity produced from renewable energy facilities.
Renewable energy is electrical, mechanical, or thermal energy
produced from a method that uses one or more of the
following fuels or energy sources: hydrogen, biomass, solar
energy, geothermal energy, wind energy, ocean energy, waste
heat, or hydroelectric power.
D. INCENTIVE AMOUNTS. The tax credit amount is equal to
$0.01/kWh of electricity produced and sold.
1.
2.
The tax credit amount is based on the sale of the
facility's entire electrical production.
For expanded facilities, the tax credit amount is
based on the increases in the facility's electrical
production that are achieved. Expanded facility is a
facility that increases its electrical production and
sale by more than 5% above the facility's 2011
electrical production and sales.
E. INCENTIVE LIMITS. The maximum annual tax credit
amount is $1 million. The statewide maximum annual tax
credit amount is $5 million in FY2012-2013 and $10 million
thereafter. The statewide maximum annual tax credit amount
is reached, the tax credit amount is a prorated amount based
on each Taxpayer applicant’s increased production and sales.
F. INCENTIVE TIMEFRAME. The tax credit is available
January 1, 2013 and expires June 30, 2016. Applications are
due by February 1 of each year. Unused tax credit may be
carried forward 5 years.
G. MISCELLANEOUS.
1.
2.
12.03
Taxpayer cannot claim both the tax credit and the
renewable energy technologies investment tax credit
per Fla. Stat. §220.192.
The tax credit increases net income in the amount of
the business deductions claimed on its federal return
paid or incurred for the taxable year.
replace or reduce the quantity of fossil fuel present in motor
fuel or diesel fuel. Biomass is a power source that is
comprised of, but not limited to, combustible residues or gases
from forest products manufacturing, waste, byproducts, or
products from agricultural and orchard crops, waste or
coproducts from livestock and poultry operations, waste or
byproducts from food processing, urban wood waste,
municipal solid waste, municipal liquid waste treatment
operations, and landfill gas.
Florida state corporate income tax credit for
alternative fuel vehicle property
A. GENERAL DESCRIPTION. Florida provides a corporate
income tax credit in the amount of 75% of the investment in
production, storage, and distribution of biodiesel, biomass and
ethanol. Fla. Stat. §220.192; Section 6, Chapter 2012-117,
Laws of Florida (2012); Fla. Dept. of Rev., Regs. §§ 12C1.0191 et seq..
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer corporations investing alternative fuel vehicle
property.
1.
2.
3.
Taxpayer must be certified by the FL Department of
Agriculture and Consumer Services.
After January 1, 2014, Taxpayer or Taxpayer
subsequent transferee may transfer the tax credit, in
whole or in part, to any Taxpayer transferee by
written agreement without transferring any
ownership interest in the property or any interest in
the entity owning such property.
Taxpayer
transferee is entitled to apply the tax credit against
the tax with the same effect as if the Taxpayer
transferee had incurred the eligible costs.
A tax credit held by a Taxpayer pass-through entity
may be passed through to the Taxpayer allocatees
designated as partners, members, or owners,
respectively, in the manner agreed to by Taxpayer
allocatees regardless of whether Taxpayer allocatees
are allocated or allowed any portion of the federal
energy tax credit for the eligible costs. Taxpayer
allocatees must attach a copy of the certificate to
each tax return on which the Taxpayer allocatee
claims any portion of the tax credit.
C. QUALIFYING ACTIVITY. Taxpayer must make investments
in alternative fuel vehicle property. Alternative fuel vehicle
property includes production, storage, and distribution of
biodiesel, biomass and ethanol. Biodiesel is the mono-alkyl
esters of long-chain fatty acids derived from plant or animal
matter for use as a source of energy and meeting the
specifications for biodiesel and biodiesel blends with
petroleum products as adopted by rule of the FL Department
of Agriculture and Consumer Services. Ethanol is an
anhydrous denatured alcohol produced by the conversion of
carbohydrates meeting the specifications for fuel ethanol and
fuel ethanol blends with petroleum products as adopted by the
FL Department of Agriculture and Consumer Services.
Renewable fuel is a fuel produced from biomass that is used to
1.
Qualifying ethanol distribution property includes
gasoline fueling station pump retrofits.
D. INCENTIVE AMOUNTS. The tax credit amount is 75% of
all capital costs, operation and maintenance costs, and
research and development costs incurred between July 1,
2012, and June 30, 2016.
1. Qualifying costs include the cost of constructing,
installing, and equipping alternative fuel vehicle
property in the state.
E. INCENTIVE LIMITS. The maximum annual amount is $1
million. The statewide maximum annual tax credit amount is
$10 million.
F. INCENTIVE TIMEFRAME. The tax credit is available
January 1, 2013 and expires December 31, 2016. Unused tax
credit may be carried forward in tax years ending before
December 31, 2018.
G. MISCELLANEOUS.
12.04
Florida state sales tax exemption for solar energy
systems
A. GENERAL DESCRIPTION. Florida provides a sales tax
exemption in the amount of 100% of the tax on purchases of
solar energy systems. Fla. Stat. § 220.192; Fla. Stat.
§212.08(7)(hh). Florida Tax Information Publication 05(A)0105, 06/01/2005 ; Florida Tax Information Publication
00(A)01-27, 09/20/2000 .
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer purchasers of solar energy systems and their
components.
1.
Taxpayer must be certified by the FL Energy and
Climate Commission.
C. QUALIFYING ACTIVITY. Taxpayer must purchase solar
energy systems. A solar energy system is the equipment and
requisite hardware that provide and are used for collecting,
transferring, converting, storing, or using incidental solar
energy for water heating, space heating and cooling, or other
applications that would otherwise require the use of a
conventional source of energy such as petroleum products,
natural gas, manufactured gas, or electricity.
1.
Solar energy systems will be listed periodically by
the FL Solar Energy Center to the FL Department of
Revenue.
D. INCENTIVE AMOUNTS.
100% of the sales tax due.
D. INCENTIVE AMOUNTS. The tax refund amount is 100% of
the sales tax paid.
The tax exemption amount is
E. INCENTIVE LIMITS. The statewide maximum annual tax
refund amount is $1 million.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME.
F. INCENTIVE TIMEFRAME. The tax refund expires July 1,
2016.
G. MISCELLANEOUS.
G. MISCELLANEOUS.
12.05
Florida state sales tax refund for alternative fuel
distribution property
A. GENERAL DESCRIPTION. Florida provides a sales tax
refund in the amount of 100% of the tax paid on purchases
relating to distribution of biodiesel and ethanol. Fla. Stat. §
220.192; Section 4, Chapter 2012-117, Laws of Florida
(2012); Fla. Stat. §212.08(7)(hhh); Fla. Admin. Code Ann.
12A-1.0142; Florida Tax Information Publication 10(A)01-09,
06/01/2012.
B. ELIGIBLE TAXPAYERS. The tax refund is available to
Taxpayer purchasers of property relating to alternative fuel
distribution property.
1.
Taxpayer must be certified by the FL Department of
Agriculture and Consumer Services.
C. QUALIFYING ACTIVITY.
Taxpayer must purchase
alternative fuel distribution property. Alternative fuel vehicle
distribution property is materials used in the distribution of
biodiesel (B10-B100), ethanol (E10-E100), and other
renewable
fuels,
including
fueling
infrastructure,
transportation, and storage. Biodiesel is the mono-alkyl esters
of long-chain fatty acids derived from plant or animal matter
for use as a source of energy and meeting the specifications
for biodiesel and biodiesel blends with petroleum products as
adopted by rule of the FL Department of Agriculture and
Consumer Services. Ethanol is an anhydrous denatured
alcohol produced by the conversion of carbohydrates meeting
the specifications for fuel ethanol and fuel ethanol blends with
petroleum products as adopted by the FL Department of
Agriculture and Consumer Services. Renewable fuel is a fuel
produced from biomass that is used to replace or reduce the
quantity of fossil fuel present in motor fuel or diesel fuel.
Biomass is a power source that is comprised of, but not
limited to, combustible residues or gases from forest products
manufacturing, waste, byproducts, or products from
agricultural and orchard crops, waste or coproducts from
livestock and poultry operations, waste or byproducts from
food processing, urban wood waste, municipal solid waste,
municipal liquid waste treatment operations, and landfill gas.
1.
Qualifying distribution must be certified by the FL
Department of Agriculture and Consumer Services.
13.
Georgia State Tax Incentives for Renewable Energy
and Green Building
13.01
Georgia state income tax credit for clean energy
property
D. INCENTIVE AMOUNTS. The tax credit amount is 35% of
the cost of the system, $0.60/square foot for lighting retrofit
projects, and $1.80/square foot for energy-efficient products
installed during construction.
1.
A. GENERAL DESCRIPTION. Georgia provides a corporate or
personal income tax credit in the amount of 35% of the cost of
clean energy systems, $0.60/square foot for lighting retrofit
projects, and $1.80/square foot for energy-efficient products
installed during construction. O.C.G. §48-7-29.14; Ga. Comp.
R. & Regs. r. 560-7-8-.48; H.B. 346 (2011).
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer corporations and individuals placing into service
clean energy property.
1.
1.
2.
E. INCENTIVE LIMITS. The statewide maximum annual tax
credit amount is $5,000,000. Taxpayers denied all or part of
the tax credit because of the statewide maximum annual cap
will be added to a waiting list prioritized by the postmark on
the Taxpayer’s first application.
1.
Taxpayer must be certified by the GA Department of
Revenue.
C. QUALIFYING ACTIVITY. Taxpayer must place clean
energy property in service. Clean energy property includes
solar energy equipment, Energy Star certified geothermal heat
pump systems, lighting retrofit projects, energy efficient
buildings, wind equipment, and biomass equipment. Solar
energy equipment that uses solar radiation as a substitute for
traditional energy for water heating, active space heating and
cooling, passive heating, daylighting, generating electricity,
distillation, desalinization, or the production of industrial or
commercial process heat, as well as related devices necessary
for collecting, storing, exchanging, conditioning, or converting
solar energy to other useful forms of energy. Lighting retrofit
project is a lighting retrofit system that employs dual
switching (ability to switch roughly half the lights off and still
have fairly uniform light distribution), delamping, daylighting,
relamping, or other controls or processes which reduce annual
energy and power consumption by 30% compared to the
ASHRAE 90.1.2004. Energy efficient building is new or
retrofitted buildings that are designed, constructed, and
certified to exceed the standards set forth in the ASHRAE
90.1.2004 by 30%. Wind equipment is equipment required to
capture and convert wind energy into electricity or mechanical
power as well as related devices that may be required for
converting, conditioning, and storing the electricity produced
by wind equipment. Biomass equipment is equipment to
convert wood residuals into electricity through gasification
and pyrolysis.
Solar hot water systems must be certified by the
Solar Rating Certification Corporation, the FL Solar
Energy Center or a comparable entity approved by
the tax authority. Solar hot water systems must meet
the certification standards of SRCC OG-100 or
FSEC-GO-80 for solar thermal collectors and/or
SRCC OG-300 or FSEC-GP-5-80 for solar thermal
residential systems.
Energy efficient buildings do not include singlefamily residential property.
The cost of the system is considered to be 800% the
net annual rental rate for leased clean energy
property. The net annual rate is the annual rental
rate paid by Taxpayer less any annual rental rate
received by Taxpayer from subrentals.
2.
The maximum annual tax credit amounts for nonsingle family residential purposes are:
(i).
$100,000 per installation for domestic
solar water heating;
(ii). $500,000
per
installation
for
photovoltaics, solar thermal electric
applications, active space heating,
biomass equipment and wind energy
systems;
(iii). $100,000 per installation for Energy Starcertified geothermal heat pumps;
(iv). $100,000 for lighting retrofit projects;
(v). $100,000 for energy-efficient products
installed during construction.
The maximum annual tax credit amounts for single
family residential purposes are:
(i).
$2,500 per dwelling unit for clean energy
property related to solar energy
equipment for domestic water heating;
(ii). $10,500 per dwelling unit applies for
clean energy property related to solar
energy equipment for photovoltaic, other
solar thermal electric applications, and
active space heating or to wind; and
(iii). $2,000 per installation for Energy Star
certified geothermal heat pump systems.
F. INCENTIVE TIMEFRAME. The tax credit expires December
31, 2014. Unused tax credit may be carried forward 5 years.
Unused tax credit may be taken against Taxpayer's quarterly
or monthly payment under O.C.G. §48-7-103.
G. MISCELLANEOUS.
13.02
Georgia state sales tax exemption for biomass
materials
A. GENERAL DESCRIPTION. Georgia provides a sales tax
exemption in the amount of 100% of the tax on sale or use of
biomass material used in the production of energy. O.C.G
§48-8-3(83).
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer purchasers of qualifying biomass material.
C. QUALIFYING ACTIVITY. Taxpayer must purchase biomass
material utilized in the production of energy, including the
production of electricity and steam. Biomass material is
organic matter, excluding fossil fuels, including agricultural
crops, plants, trees, wood, wood wastes and residues, sawmill
waste, sawdust, wood chips, bark chips, and forest thinning,
harvesting, or clearing residues; wood waste from pallets or
other wood demolition debris; peanut shells; pecan shells;
cotton plants; corn stalks; and plant matter, including aquatic
plants, grasses, stalks, vegetation, and residues, including
hulls, shells, or cellulose containing fibers.
1.
Biomass materials include pellets and fuels derived
from biomass.
D. INCENTIVE AMOUNTS.
100% of the sales tax due.
F. INCENTIVE TIMEFRAME.
G. MISCELLANEOUS.
Georgia state income tax credit for zero emission
vehicles and chargers
A. GENERAL DESCRIPTION. Georgia provides an income tax
credit in the amount of 20% for the purchase or lease of a zero
emission vehicle and 10% for the purchase or lease of electric
vehicle charger. O.C.G. §48-7-40.16.
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer owners or lessee of electric vehicles and chargers.
1.
2.
3.
Taxpayer must be certified and approved by the
Environmental Protection Division of the GA
Department of Natural Resources.
Taxpayer ownership of a new clean fueled vehicle
must be evidenced by the certificate of title issued
for such vehicle.
Taxpayer owner of an electric vehicle charger must
be provided a certification issued by the seller.
C. QUALIFYING ACTIVITY. Taxpayer must purchase or lease
a zero-emission vehicle or electric vehicle chargers.
1.
E. INCENTIVE LIMITS. The maximum tax credit amounts are
$5,000 for a zero emission vehicle registered in the state and
$2,500 of the cost of an electric vehicle charger located in the
state.
F. INCENTIVE TIMEFRAME. Qualifying leases must be in
effect before or on the last day of the calendar year in which
the tax credit is claimed. Unused tax credit may be carried
forward 5 years.
G. MISCELLANEOUS.
13.04
The tax exemption amount is
E. INCENTIVE LIMITS.
13.03
D. INCENTIVE AMOUNTS. The tax credit amount is 20% the
cost of a zero emission vehicle registered in the state and 10%
of the cost of an electric vehicle charger located in the state.
Qualifying zero emission vehicle or electric vehicle
chargers must be certified by the GA Board of
Natural Resources.
Georgia state sales tax exemption for energy-efficient
products
A. GENERAL DESCRIPTION. Georgia provides a sales tax
exemption in the amount of 100% the tax on energy-efficient
residential appliances, lighting, doors and windows. O.C.G.
§48-8-3 (82); Georgia Dept of Rev. Rule 560-12-2-.112
(2012).
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer purchasers of energy-efficient residential appliances,
lighting, doors and windows.
C. QUALIFYING ACTIVITY. Taxpayer must purchase energy
efficient products under $1,500. Energy efficient products
include any energy efficient product for noncommercial home
or personal use including dishwashers, clothes washers, air
conditioners, ceiling fans, fluorescent light bulbs,
dehumidifiers, programmable thermostats, refrigerators, doors,
or windows which have been designated by the US
Environmental Protection Agency and the US Department of
Energy as meeting or exceeding each such agency's energy
saving efficiency requirements or Energy Star program.
D. INCENTIVE AMOUNTS. The tax exemption amount is
100% of sales and use tax due.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME. The tax exemption is effect from
October 5 to October 7 (2012).
G. MISCELLANEOUS.
13.05
Georgia state income tax credit for biomass material
transportation
A. GENERAL DESCRIPTION. Georgia provides an income tax
credit in the amount determined by the GA Forestry
Commission for transporting or diverting wood residuals to a
renewable biomass qualified facility. Ga. Code Ann. § 48-729.14; Ga. Comp. R. & Regs. r. 560-7-8-.48.
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer transporters of wood residuals to a renewable
biomass qualified facility.
1.
Taxpayer must be certified by the GA Forestry
Commission.
C. QUALIFYING ACTIVITY. Taxpayer must transport or divert
wood residuals to a renewable biomass qualified facility.
Wood residuals include land-clearing residue, urban wood
residue, and pellets.
1.
2.
Renewable biomass qualified facility must use the
wood residuals for the purpose of providing
bioelectric power to a third party.
Wood residuals do not include wood from any
United States national forest.
D. INCENTIVE AMOUNTS.
The tax credit amount is
determined by the GA Forestry Commission on a per tonnage
basis.
E. INCENTIVE LIMITS. The statewide maximum annual tax
credit amount is $25 million.
F. INCENTIVE TIMEFRAME. The tax credit expires December
31, 2012.
G. MISCELLANEOUS.
13.06
Georgia state income tax credit for alternative energy
product manufacturing
A. GENERAL DESCRIPTION. Georgia provides an income tax
credit in the amount of up to $4,000 per new employee in
alternative energy manufacturing business enterprises located
in qualified counties. O.C.G. §48-7-40; H.B. 868 (2012).
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer manufacturers of alternative energy manufacturing
business enterprises.
C. QUALIFYING ACTIVITY. Taxpayer must be located in
qualified counties and create jobs in manufacturing of
alternative energy products. Alternative energy products are
produced for use in solar, wind, battery, bioenergy, biofuel,
and electric vehicle enterprises.
1.
Qualified counties must be certified by the GA
Commissioner of Community Affairs.
2.
Qualifying jobs must requires a minimum of 35
hours a week and have an average wage above the
average wage of the county that has the lowest
average wage of any county in the state to qualify.
D. INCENTIVE AMOUNTS. The annual tax credit amount is
$4,000 per eligible new full-time employee for existing
business enterprise in Tier 1 counties.
E. INCENTIVE LIMITS. The maximum tax credit allowed to
be claimed is 50% of the state income tax liability of Taxpayer
located in Tier 3 and 4 counties. The tax credit may be carried
forward 10 years.
F. INCENTIVE TIMEFRAME. The tax credit period is 5 years.
G. MISCELLANEOUS.
17.
Illinois State Tax Incentives for Renewable Energy
and Green Building
owner of the land surrounding the newly platted
area.
17.01
Illinois state property tax exemption for solar and
wind energy property
D. INCENTIVE AMOUNTS. The tax exemption amount for
solar energy systems is 100% of the property tax due. The tax
exemption amount for wind energy property lowers the
assessment amount to the fair cash value. Fair cash value is
the real property cost basis of $360,000 (2007) per megawatt
of nameplate capacity less an allowance for physical
depreciation. The allowance for physical depreciation is equal
to (i) the actual age in years of the wind energy device on the
assessment date divided by 25 years multiplied by (ii) the
trended real property cost basis. The allowance for physical
depreciation, however, may not reduce the value of the wind
energy device to less than 30% of the trended real property
cost basis.
A. GENERAL DESCRIPTION. Illinois allows a property tax
exemption in the amount of 100% of the tax on solar energy
systems or wind energy devices. ILCS Chapter 35 §200/10-10
et seq.; H.B. 4797 (2010).
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer owners of property with a solar energy system or
wind energy device installed.
1.
Taxpayer must file a claim with the county.
C. QUALIFYING ACTIVITY. Taxpayer must own a solar
energy system or wind energy device. A solar energy system
is a complete assembly, structure, or design of solar collector,
or a solar storage mechanism, which uses solar energy for
generating electricity or for heating or cooling gases, solids,
liquids, or other materials; the design, materials, or elements
of a system and its maintenance, operation, and labor
components, and any necessary components of supplemental
conventional energy systems designed or constructed to
interface with a solar energy system; and any legal, financial,
or institutional orders, certificates, or mechanisms, including
easements, leases, and agreements, required to ensure
continued access to solar energy, its source, or its use in a
solar energy system, including monitoring and educational
elements of a demonstration project. Wind energy device is
any wind turbine, with a nameplate capacity of at least 0.5
megawatts, that is used in the process of converting kinetic
energy from the wind to generate electric power for
commercial sale.
1.
2.
3.
Solar energy systems do not include distribution
equipment that is equally usable in a conventional
energy system except for those components of the
equipment that are necessary for meeting the
requirements of efficient solar energy utilization;
and components of a solar energy system that serve
structural, insulating, protective, shading, aesthetic,
or other non-solar energy utilization purposes.
Solar energy systems be certified by the IL
Department of Commerce and Economic
Opportunity. If the solar energy system ceases to be
used to heat or cool the property Taxpayer must give
written notice to the IL Department of Commerce
and Economic Opportunity.
Wind energy device projects must use an Illinois
registered land surveyor to prepare a plat showing
the metes and bounds description, including access
routes, of the area immediately surrounding the wind
energy device over which that owner has exclusive
control and must record the plat and deliver a copy
of it to the chief county assessment officer and to the
1.
Fair cash value may be further reduced by functional
obsolescence and external obsolescence.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME.
December 31, 2016.
The tax exemption expires
G. MISCELLANEOUS.
17.02
Illinois state sales tax exemption for wind energy
business for building materials
A. GENERAL DESCRIPTION. Illinois provides a sales tax
exemption in the amount of 100% of the tax on building
materials sold by a retailer incorporated a wind energy
business facility. ILCS Chapter 20 §655/5.5; ILCS Chapter 35
§120/5l.
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer purchasers of building materials from wind energy
business sellers.
1.
2.
Sellers must apply to the IL Department of
Commerce and Economic Opportunity for
designation as Wind Energy Business within the
High Impact Business Program.
Taxpayer purchaser must present the certificate of
eligibility for exemption to wind energy business
sellers when making the initial purchase of property.
C. QUALIFYING ACTIVITY. Taxpayer must purchase wind
power facility building materials from wind energy business
sellers.
1.
Qualifying wind power facilities must be new (or an
expansion of an existing facility) and must generate
electricity using wind turbines 500 kW or greater.
2.
Qualifying wind power facility building materials
include the associated transmission lines, substations
and related equipment.
D. INCENTIVE AMOUNTS.
100% of the sales tax due.
F. INCENTIVE TIMEFRAME. The tax exemption expired June
30, 2009. The tax exemption period is 5 years, and may be
renewed for additional 5-year periods. The tax exemption
period may not exceed 20 years and will not be allowed
beyond the term of the enterprise zone.
G. MISCELLANEOUS. Qualifying wind power facilities must
comply with the Prevailing Wage Act for construction labor.
Illinois state tax incentives for renewable energy and
energy conservation job creation
A. GENERAL DESCRIPTION. Illinois provides a tax credit in
the amount awarded by the state for. ILCS Chapter 35 §10/;
ILCS Chapter 20 §630/2; Public Act 097-058l (2011).
B. ELIGIBLE TAXPAYERS. The tax incentives are available to
Taxpayer qualifying employers.
1.
2.
F. INCENTIVE TIMEFRAME. The tax credit may not exceed
10 years or 15 years for corporate headquarters relocation.
The tax exemption amount is
E. INCENTIVE LIMITS.
17.03
E. INCENTIVE LIMITS.
Taxpayer must be certified by the IL Department of
Commerce and Economic Opportunity for
designation a qualified employer.
Shareholders or partners of a Taxpayer that is a pass
through entity shall be entitled to the tax credit
allowed under the agreement between Taxpayer and
IL Department of Commerce and Economic
Opportunity.
C. QUALIFYING ACTIVITY. Taxpayer must produce energy
conserving materials or services or
be involved in
development of renewable sources of energy.
D. INCENTIVE AMOUNTS.
The tax credit amount is
determined by the IL Department of Commerce and Economic
Opportunity and is based on the following criteria: (1) The
number and location of jobs created and retained in relation to
the economy of the county where the projected investment is
to occur; (2) The potential impact on the economy of Illinois;
(3) The magnitude of the cost differential between Illinois and
the competing state; (4) The incremental payroll attributable to
the project; (5) The capital investment attributable to the
project; (6) The amount of the average wage and benefits paid
by the Applicant in relation to the wage and benefits of the
area of the project; (7) The costs to Illinois and the affected
political subdivisions with respect to the project; (8) The
financial assistance that is otherwise provided by Illinois and
the affected political subdivisions.
G. MISCELLANEOUS.
18.
Indiana State Tax Incentives for Renewable Energy
and Green Building
distributed at retail.
Ind. Code
Information Bulletin IT91, 06/01/2006.
18.01
Indiana state property tax exemption for renewable
energy property
B. ELIGIBLE TAXPAYERS. Taxpayer producers of biodiesel
and Taxpayer producers and distributors of blended biodiesel.
1.
A. GENERAL DESCRIPTION. Indiana provides a property tax
assessment exemption in the amount of 100% of the cost of
systems that generate energy using solar, wind, hydropower or
geothermal resources. Ind. Code §6-1.1-12-26 et seq.; H.B.
1086 (2010).
2.
3.
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer owners of qualifying renewable energy property
installed in real property or a mobile home.
1.
2.
Taxpayer must fill out Form 18865 and file it with
the local county auditor.
Taxpayer must own the real property, mobile home,
or manufactured home, or be buying the real
property, mobile home, or manufactured home under
contract, on the date the statement is filed.
C. QUALIFYING ACTIVITY. Taxpayer must own property
equipped with a solar energy heating or cooling system or
hydroelectric and geothermal devices installed in real property
or a mobile home.
1.
2.
A hydroelectric power device is a device installed
after December 31, 1981, designed to utilize the
kinetic power of moving water to provide
mechanical energy or to produce electricity.
A geothermal energy or cooling device is a device
installed after the above date designed to utilize the
natural heat from the earth to provide hot water,
produce electricity, or generate heating or cooling.
D. INCENTIVE AMOUNTS. The tax exemption amount is
100% of the property tax due.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME. For qualifying mobile homes
which is not assessed as real property, Taxpayer must file the
statement during the 12 months before March 31 of each year
for of the tax exemption.
G. MISCELLANEOUS.
§6-3.1-27; Indiana
Taxpayer must be certified by the IN Economic
Development Corporation.
Taxpayer may apply the tax credit against the sales
tax, the adjusted gross income tax, the financial
institutions tax, or the insurance premiums tax.
Taxpayer shareholder, partner, or member of a passthrough entity is entitled to a portion of the tax credit
in the percentage of the pass-through entity's
distributive income to which the Taxpayer allocatee
is entitled.
C. QUALIFYING ACTIVITY.
Taxpayer must produce
biodiesel. Biodiesel is a renewable, biodegradable, mono
alkyl ester combustible liquid fuel derived from agricultural
plant oils or animal fats that meets American Society for
Testing and Materials specification D6751-03a Standard
Specification for biodiesel fuel (B100) blend stock for
distillate fuels. Blended biodiesel is a blend of biodiesel with
petroleum diesel so that the percentage of biodiesel in the
blend is at least 2% (B2 or greater).
1.
Blended biodiesel does not include biodiesel (B100).
D. INCENTIVE AMOUNTS. The tax credit amount is $1.00 per
gallon of biodiesel produced, $0.02 per gallon of blended
biodiesel produced, and $0.01 per gallon of blended biodiesel
distributed.
1.
The tax credit is reduced by any tax credit or subsidy
that Taxpayer is entitled to receive from the federal
government for the production of blended biodiesel.
E. INCENTIVE LIMITS. The maximum cumulative tax credit
amount for biodiesel production is $3 million, but may be
increased to $5 million with prior approval. The statewide
maximum annual tax credit and the ethanol production tax
credit in Ind. Code §6-3.1-28 amount is $50 million. The
statewide maximum cumulative tax credit amount for blended
biodiesel distribution is $1 million.
F. INCENTIVE TIMEFRAME. The tax credit expires December
31, 2010. Unused tax credit may be carried forward 6 years.
G. MISCELLANEOUS.
18.02
Indiana state sales or income tax credit for biodiesel
and blended biodiesel production
A. GENERAL DESCRIPTION. Indiana provides a sales or
income tax credit in the amount of $1.00 per gallon of
biodiesel produced, $0.02 per gallon of blended biodiesel
produced, and $0.01 per gallon of blended biodiesel
18.03
Indiana state income tax credit for ethanol production
A. GENERAL DESCRIPTION. Indiana provides an income tax
credit in the amount of $0.125 per gallon of ethanol produced.
Ind. Code §6-3.1-28; Indiana Information Bulletin IT93,
07/01/2007.
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer producers of ethanol.
1.
2.
3.
Taxpayer must be certified by the IN Economic
Development Corporation.
Taxpayer may apply the tax credit against the sales
tax, the adjusted gross income tax, the financial
institutions tax, or the insurance premiums tax.
Taxpayer shareholder, partner, or member of a passthrough entity is entitled to a portion the tax credit in
the percentage of the pass-through entity's
distributive income to which the Taxpayer allocatee
is entitled.
C. QUALIFYING ACTIVITY. Taxpayer must produce ethanol.
Ethanol is agriculturally derived ethyl alcohol. Ethanol
includes cellulosic ethanol, which is ethanol derived solely
from lignocellulosic or hemicellulosic matter.
1.
Qualifying production facility must be located in
Indiana and have the capacity to produce at least 40
million gallons of ethanol a year, or has increased its
ethanol production capacity by at least 40 million
gallons per year.
D. INCENTIVE AMOUNTS. The tax credit amount is $0.125
per gallon of ethanol produced.
1.
The tax credit amount must be at least $4 million.
E. INCENTIVE LIMITS. The tax credit may only be applied
against the state tax liability attributable to business activity
taking place at the qualifying production facility. The
maximum annual tax credit amounts are $2 million for
Taxpayers that produce at least 40 million gallons but less
than 60 million gallons of grain ethanol in the taxable year and
$3 million for Taxpayers that produce at least 60 million
gallons of grain ethanol in the taxable year. The statewide
maximum cumulative tax credit amount is $20 million for
Taxpayers who produces at least 20 million gallons of
cellulosic ethanol in a taxable year.
1.
The statewide maximum annual tax credit and the
biodiesel production tax credit, the blended biodiesel
production tax credit in Ind. Code §6-3.1-27 amount
is $50 million.
Ind. Code §6-3.1-31.9; Indiana Information Bulletin IT103,
08/01/2009; Indiana Information Bulletin IT103, 05/01/2012.
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer assemblers or manufacturers of alternative fuel
vehicles.
1.
Taxpayer must be certified by the IN Economic
Development Corporation.
C. QUALIFYING ACTIVITY.
Taxpayer must invest in
alternative fuel vehicle manufacturing. An alternative fuel
vehicle is any passenger car or light truck with a gross weight
of 8,500 pounds or less that is designed to operate using
smethanol, denatured ethanol, other alcohols, E85 (mixtures
containing 85 percent or more by volume of methanol,
denatured ethanol, and other alcohols with gasoline or other
fuel), natural gas, liquefied petroleum gas, hydrogen, coalderived liquid fuels, non-alcohol fuels derived from biological
material, P-Series fuels, electricity, biodiesel, or ultra-low
sulfur diesel fuel.
D. INCENTIVE AMOUNTS. The tax credit amount is 15% of
the qualifying investment. Qualifying investment is the
amount of Taxpayer's expenditures in Indiana that are
reasonable and necessary for the manufacture or assembly of
alternative fuel vehicles. Qualifying investments include
construction of new (or the modernization of existing)
telecommunications, production, manufacturing, fabrication,
assembly, finishing, distribution, transportation, or logistical
distribution facilities; purchase of new equipment used for
telecommunications, production, manufacturing, fabrication,
assembly, finishing, distribution, transportation, or logistical
distribution; purchase of new computers and related
equipment; onsite infrastructure improvements; costs
associated with retooling existing machinery and equipment;
costs associated with the construction of special-purpose
buildings, pits, and foundations; and costs associated with the
purchase of machinery, equipment, or special- purpose
buildings used to manufacture or assemble alternative fuel
vehicles.
1.
Qualifying investment must be certified by the IN
Economic Development Corporation
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME. Unused credit may be carried
forward.
F. INCENTIVE TIMEFRAME. The tax credit expires December
31, 2016. Unused tax credit may be carried forward 9 years.
G. MISCELLANEOUS.
G. MISCELLANEOUS. The tax credit may not be claimed with
any of the other tax credits listed in Ind. Code §6-3.1-1-3 .
18.04
Indiana state income tax credit for alternative fuel
vehicle manufacturing
A. GENERAL DESCRIPTION. Indiana provides an income tax
credit in the amount of 15% of the qualifying investment in
alternative fuel vehicle manufacturing. Ind. Code §6-3.1-1-3;
18.05
Indiana state personal income tax deduction for
installation of insulation
A. GENERAL DESCRIPTION. Indiana provides a personal
income tax deduction in the amount of 100% the cost of the
materials and labor used to install qualifying insulation in a
taxpayer's principal residence. Ind. Code §6-3-2-5; Indiana
Information Bulletin IT43, 01/01/2003.
F. INCENTIVE TIMEFRAME.
G. MISCELLANEOUS.
B. ELIGIBLE TAXPAYERS. The tax deduction is available to
Taxpayer individuals installing qualifying insulation in
Taxpayer’s principal residence.
C. QUALIFYING ACTIVITY. Taxpayer must install qualifying
insulation in Taxpayer’s principal residence. Qualifying
insulation includes ceiling insulation, wall insulation, floor
insulation, roof insulation, hot bare pipe insulation and
exterior insulation for a hot water heater. Insulation is any
material commonly used in the building industry for the sole
purpose of controlling the passage of heat energy into or out of
a building. Qualifying insulation types include material made
from fiberglass, rock wool, cellulose, Styrofoam, urea-based
foam urethane, vermiculite, perlite, polystyrene, reflective
insulation, extruded polystyrene foam, blown-in insulation,
rolled insulation, sheet Styrofoam insulation, and wrap
insulation. Ceiling insulation is insulation installed within the
enclosed walls of a principal residence or insulation installed
between unheated attic space and the top level of a principal
residence. Wall insulation is insulation installed in the surface
of an exterior wall or in the cavity of an exterior wall. Floor
insulation is insulation installed between the first level heating
space of a residence and the unheated space beneath it,
including a crawl space or a basement. Roof insulation is
insulation installed on the surface of the roof facing the
residential interior. Hot bare pipe insulation is insulation
installed around the exterior of pipes. Exterior insulation for a
hot water heater is insulation placed around the exterior of a
hot water heater tank.
1.
2.
3.
4.
5.
Qualifying insulation does not include materials
replacing broken or worn-out materials.
Qualifying insulation includes weather stripping,
storm windows, storm doors, thermal pane windows,
and caulking.
Qualifying insulation does not include automatic
setback thermostats, flue opening modifications,
mechanical furnace ignition systems, solar energy
equipment (such as collectors, rock beds, and heat
exchangers), wind energy equipment (such as
windmills), geothermal energy equipment, furnace
replacement burners, meters, wood burning stoves,
sky lights, heat pumps, and temporary plastic
window coverings.
Qualifying residence or portion of residence must
have been built at least 3 years prior to the taxable
year for which the deduction is taken.
Qualifying insulation must be new and not used as a
replacement for other material.
D. INCENTIVE AMOUNTS. The tax deduction amount is the
cost of the insulation.
1. The cost of insulation includes installation costs.
E. INCENTIVE LIMITS.
$1,000.
The maximum tax deduction is
18.06
Indiana state income tax credit for certain Energy
Star HVAC equipment
A. GENERAL DESCRIPTION. Indiana provides a corporate or
personal income tax credit in the amount of 20% of costs of
Energy Star rated water heaters, furnaces, air conditioners, and
programmable thermostats. Ind. Code §6-3.1-31.5.
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer corporate small businesses or individuals purchasing
Energy Star heating and cooling equipment.
1.
2.
3.
4.
Taxpayer corporate small business is a business that:
(1) is independently owned and operated; (2) has the
principal office of the business located in Indiana
and (3) has not more than: (i) 100 employees; and
(ii) except for manufacturing businesses, an average
annual gross receipts of $10 million.
Taxpayer may apply the tax credit against the sales
tax, the adjusted gross income tax, the financial
institutions tax, or the insurance premiums tax.
Taxpayer shareholder, partner, or member of a passthrough entity is entitled to a portion credit in the
percentage of the pass-through entity's distributive
income to which the Taxpayer allocatee is entitled.
Taxpayer may not sell, assign, convey, or otherwise
transfer the tax credit.
C. QUALIFYING ACTIVITY. Taxpayer must purchase Energy
Star heating and cooling equipment. Energy Star heating and
cooling equipment is heating and cooling equipment that is
rated for energy efficiency under the Federal Energy Star
program and manufactured in the United States. Energy Star
heating and cooling equipment include furnaces, water
heaters, central air conditioning, room air conditioners, and
programmable thermostats.
D. INCENTIVE AMOUNTS. The tax credit amount is 20% of
the cost of Energy Star heating and cooling equipment.
E. INCENTIVE LIMITS. The maximum annual tax credit
amount is $100. The statewide maximum annual amount is $1
million.
F. INCENTIVE TIMEFRAME.
The tax credit expires in
December 31, 2010. Unused tax credit may be carried back or
carried forward.
G. MISCELLANEOUS.
18.07
Indiana state individual income tax deduction for
solar powered roof vent or fan
A. GENERAL DESCRIPTION. Indiana provides an individual
income tax deduction in the amount of 50% the cost of labor
and materials for the installation of the solar powered roof
vent or fan installed. Ind. Code §6-3-2-5.3; Ind. Dept. of
Rev., Tax Information Income Tax Bulletin 105.
B. ELIGIBLE TAXPAYERS. The tax deduction is available to
Taxpayer individuals installing a solar powered vent or fan on
a building owned or leased by Taxpayer.
1.
Taxpayer must file with the IN Department of
Revenue proof of Taxpayer's costs for installation of
a solar powered roof vent or fan and a list of the
persons or corporations that supplied labor or
materials for the installation of the solar powered
roof vent or fan.
C. QUALIFYING ACTIVITY. Taxpayer must install a solar
powered vent or fan on a building owned or leased by
Taxpayer. A solar powered vent or fan is a roof vent or fan
that is powered by solar energy and used to release heat from a
building.
D. INCENTIVE AMOUNTS. The tax deduction amount is 50%
the cost of labor and materials for the installation of the solar
powered roof vent or fan.
E. INCENTIVE LIMITS. The maximum annual tax deduction
amount is $1,000.
F. INCENTIVE TIMEFRAME.
G. MISCELLANEOUS.
21.
Kentucky State Tax Incentives for Renewable Energy
and Green Building
21.01
Kentucky state corporate income tax credit for
renewable energy facilities
A. GENERAL DESCRIPTION. Kentucky provides a corporate
income tax credit in the amount of 50% of the investment in
renewable energy facilities. Ky. Rev. Stat. Ann. §154.27-010
et seq.; 307 Ky. Admin. Regs. 1:040; H.B. 552 (2010); H.B.
589 (2010).
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer individuals installing renewable energy systems on
residential and commercial property.
C. QUALIFYING ACTIVITY.
Taxpayer must installing
renewable energy systems.
Renewable energy systems
include solar hot water, solar energy systems, PV panels,
inverters, wind and geothermal heat pumps.
1.
2.
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer corporations constructing, retrofitting or upgrading
facilities that generate power from renewable resources.
1.
3.
Taxpayers must be certified by the KY Economic
Development Finance Authority.
4.
C. QUALIFYING ACTIVITY. Taxpayer must construct, retrofit
or upgrade a renewable energy facility. A renewable energy
facility is one that generates at least 50 kW of electricity from
solar power or at least 1 MW from wind power, biomass
resources, landfill gas, hydropower, energy-efficient
alternative fuel, natural gas alternative fuel or similar
renewable resources.
1.
2.
3.
6.
7.
Qualifying electricity must be sold to an unrelated
party.
Qualifying renewable energy facilities must have a
minimum of $1 million in capital expenditures.
Qualifying energy-efficient alternative fuel facilities
and biomass facilities must have a minimum of $25
million in capital expenditures.
D. INCENTIVE AMOUNTS. The tax credit amount is 50% of
the capital investment.
E. INCENTIVE LIMITS. The maximum tax credit amount is
50% of the capital investment.
F. INCENTIVE TIMEFRAME.
G. MISCELLANEOUS.
21.02
5.
Kentucky state personal income tax credit for
renewable energy systems
A. GENERAL DESCRIPTION. Kentucky provides a personal
income tax credit in the amount of 30% of the cost of
installing renewable energy systems on residential and
commercial property. Ky. Rev. Stat. Ann. §141.436q.; 307 Ky.
Admin. Regs. 1:040.
8.
9.
Qualifying wind and solar hot water equipment must
have a manufacturer’s warranty of 5 years or more.
Qualifying solar hot water systems must have an
installer's warranty of 2 years or more, and must use
collectors certified by the Solar Rating and
Certification Corporation under OG-100.
Qualifying solar energy systems must be installed by
a North American Board of Certified Energy
Practitioners-certified installer.
Qualifying PV panels and inverters must meet
article 690 of the National Electrical Code and be
certified by Underwriters Laboratories.
Qualifying wind turbines must meet the wind
industry consensus standards developed by the
American Wind Energy Association and U.S.
Department of Energy.
Qualifying wind turbines must meet the
requirements of article 705 of the NEC, and must be
UL-certified.
Qualifying closed loop geothermal heat pumps must
have EER of 14.1 and COP of 3.6
Qualifying open loop geothermal heat pump must
have EER of 16.2 and COP of 3.5
Qualifying DX geothermal heat pump must have
EER of 15 and COP of 3.5
D. INCENTIVE AMOUNTS. The tax credit amount is 30% of
the cost of the renewable energy systems. The tax credit
amount is $3.00/watt for rated capacity for PV.
E. INCENTIVE LIMITS. The maximum tax credit amounts are
$250 for geothermal technologies, $500 for solar hot water
and wind technologies, and the greater of $500 or $3.00 per
watt of rated capacity for photovoltaic systems.
The
maximum tax credit amount is $1,000 for installations on
multi-family residential rental units or commercial property.
The maximum tax credit amount is $500 for single family
residential rental unit.
F. INCENTIVE TIMEFRAME. The tax credit expires December
31, 2015. Unused tax credit may be carried forward 1 year.
G. MISCELLANEOUS.
21.03
Kentucky state sales tax exemption for renewable
energy facilities
A. GENERAL DESCRIPTION. Kentucky provides a sales tax
exemption for renewable energy facility property. Ky. Rev.
Stat. Ann. §154.27-010 et seq.; 103 Ky. Admin. Regs. 31:190;
H.B. 552 (2010); H.B. 589 (2010).
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer purchasers of property for facilities that generate
power from renewable resources.
1.
Taxpayer must be certified by the KY Economic
Development Finance Authority.
C. QUALIFYING ACTIVITY. Taxpayer must purchase property
for renewable energy facilities. A renewable energy facility is
defined as one that generates at least 50 kW of electricity from
solar power or at least 1 MW from wind power, biomass
resources, landfill gas, hydropower, energy-efficient
alternative fuel, natural gas alternative fuel or similar
renewable resources.
1.
2.
Qualifying electricity must be sold to an unrelated
party.
Qualifying renewable energy facility must have a
minimum $1 million in capital expenditures.
D. INCENTIVE AMOUNTS.
100% of the sales tax due.
The tax exemption amount is
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME. The maximum tax exemption
period is 25 years.
G. MISCELLANEOUS.
21.04
Kentucky state income tax credit for biodiesel and
renewable diesel
A. GENERAL DESCRIPTION. Kentucky provides a personal,
corporate or limited liability entity income tax credit in the
amount of $1.00 per gallon for producing and blending
biodiesel and renewable diesel. Ky. Rev. Stat. Ann. §141.422
et seq.; Ky. Admin. Regs. 103 §15:140(4); L. 2012, H441 (c.
160)(2012).
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer corporations or individuals producing or blending
biodiesel and renewable diesel.
1.
2.
Taxpayer must be certified by the KY Department of
Revenue.
Taxpayer agriculture cooperatives formed as limited
cooperative associations may apportion the tax
credit among patron members of the association.
C. QUALIFYING ACTIVITY. Taxpayer must produce or blend
biodiesel and renewable diesel. Biodiesel is a renewable,
biodegradable, mono alkyl ester combustible liquid fuel
derived from agriculture crops, agriculture plant oils,
agriculture residues, animal fats or waste products that meets
current American Society for Testing and Materials
specification D6751 for biodiesel fuel (B100) blend stock
distillate fuels. Blended biodiesel is a blend of biodiesel with
petroleum diesel so that the percentage of biodiesel in the
blend is at least 2% (B2 or greater). Renewable diesel is a
renewable, biodegradeable, non-ester combustible liquid that
is derived from biomass resources and meets the current
American Society for Testing and Materials Specification
D396 for fuel oils intended for use in various types of fuel oil
burning equipment, D975 for diesel fuel oils suitable for
various types of diesel fuel engines or D1655 for aviation
turbine fuels.
D. INCENTIVE AMOUNTS. The tax credit amount is $1.00 per
biodiesel gallon produced by a biodiesel producer, $1.00 per
gallon of biodiesel used in the blending process and $1.00 per
gallon of renewable diesel produced by a renewable diesel
producer.
E. INCENTIVE LIMITS. The statewide maximum annual tax
credit amount is $10 million. If the tax credit exceeds the
statewide maximum annual tax credit amount, the tax credit
will be prorated among approved producers and blenders.
F. INCENTIVE TIMEFRAME. Taxpayer must apply for the tax
credit by January 15 of the preceding calendar year.
G. MISCELLANEOUS.
21.05
Kentucky state income tax credit for cellulosic ethanol
or ethanol fuel
A. GENERAL DESCRIPTION. Kentucky provides a personal,
corporate or limited liability entity income tax credit in the
amount of $1.00 per gallon for producing cellulosic ethanol
fuel. Ky. Rev. Stat. Ann. §141.4244; Ky. Rev. Stat. Ann.
§141.422; Ky. Rev. Stat. Ann. §141.4242; Ky. Dept. of Rev.,
Prop. Regs. § 15:110 et seq..
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer corporations or individuals producing cellulosic
ethanol or ethanol.
1.
2.
Taxpayer must be certified by the KY Department of
Revenue.
Taxpayer pass-through entities claiming the tax
credit must apply the tax credit based on distributive
share.
C. QUALIFYING ACTIVITY.
Taxpayer must produce
cellulosic ethanol or ethanol. Cellulosic ethanol is ethyl
alcohol for use as a motor fuel that meets the current
American Society for Testing and Materials specification
D4806 for ethanol that is produced from cellulosic biomass
materials of any lignocellulosic or hemicellulosic material that
is available on a renewable or recurring basis including: plant
wastes from industrial processes such as sawdust and paper
pulp; energy crops grown specifically for fuel production such
as switchgrass or agricultural plant residues such as corn
stover, rice hulls, sugar cane and cereal straws. Ethanol is
ethyl alcohol produced from corn, soybeans, or wheat for use
as a motor fuel that meets the current American Society for
Testing and Materials specification D4806 for ethanol.
D. INCENTIVE AMOUNTS. The tax credit amount is $1.00 per
cellulosic ethanol or ethanol gallon produced.
E. INCENTIVE LIMITS. The statewide maximum annual tax
credit amounts are $5 million for cellulosic ethanol and $5
million for ethanol. If the amount of credit exceeds the
statewide maximum annual tax credit amounts, the tax credit
will be prorated among approved producers.
F. INCENTIVE TIMEFRAME. Taxpayer must apply for the tax
credit by January 15 of the preceding calendar year.
G. MISCELLANEOUS.
credit amount for Energy Star manufactured home sold is
$400.
F. INCENTIVE TIMEFRAME. The tax credit expires December
31, 2015.
G. MISCELLANEOUS.
21.07
Kentucky state sales tax exemption for energy efficient
manufacturing machinery and equipment
A. GENERAL DESCRIPTION. Kentucky provides a sales tax
exemption in the amount of 100% of the tax on energy
efficient manufacturing machinery and equipment. Ky. Rev.
Stat. Ann. §139.518; 103 Ky. Admin. Regs. 31:200.
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer purchasers of new or replacement equipment for an
energy efficiency project.
1.
21.06
Kentucky state income tax credit for energy efficient
commercial property
A. GENERAL DESCRIPTION. Kentucky provides a corporate
or personal income tax credit in the amount of 30% of the cost
of energy efficiency measures on commercial property. Ky.
Rev. Stat. Ann. §141.435 et seq.
C. QUALIFYING ACTIVITY.
Taxpayer must purchase
equipment for an energy efficiency project. An energy
efficiency project is a project that decreases the measurable
amount of energy used by the facility by at least 15% percent
while maintaining or increasing the production for the same
period.
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer corporations and individuals installing certain
energy efficiency measures on commercial property.
C. QUALIFYING ACTIVITY. Taxpayer must install energy
efficiency measures on commercial property.
Energy
efficiency measures include energy efficient lighting systems,
energy efficient HVAC system, and Energy Star manufactured
homes. An energy efficient lighting system is an interior
lighting system that meets the maximum reduction in lighting
power density requirements for the federal energy efficient
commercial building deduction under IRC §179D, as in effect
December 31, 2007. An energy-efficient heating, cooling,
ventilation, or hot water system as a system that meets the
requirements for the federal energy-efficient commercial
building deduction under IRC §179D, as in effect December
31, 2007.
D. INCENTIVE AMOUNTS. The tax credit amount is 30% of
installed cost.
E. INCENTIVE LIMITS. The maximum tax credit amount is
$1,000. The maximum tax credit amount for energy efficient
lighting system is $500. The maximum tax credit amount for
energy efficient HVAC System is $500. The maximum tax
Taxpayer must be certified by the KY Cabinet for
Economic Development and the KY Department of
Revenue prior to purchasing new or replacement
equipment.
1.
Qualifying equipment does not include windows,
lighting or other improvements to buildings and
repair, replacement and spare parts.
D. INCENTIVE AMOUNTS.
100% of the sales tax due.
The tax exemption amount is
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME. The maximum tax exemption
period is 25 years.
G. MISCELLANEOUS.
21.08
Kentucky state personal income tax credit for energy
efficient residential property
A. GENERAL DESCRIPTION. Kentucky provides a personal
income tax credit in the amount of 30% of the cost of energy
efficiency measures on residential property. Ky. Rev. Stat.
Ann. §141.435 et seq.
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer individuals installing certain energy efficiency
measures on residential property.
C. QUALIFYING ACTIVITY. Taxpayer must install certain
energy efficiency measures on residential property. Energy
efficiency measures include: (1) qualifying energy property
including water heaters, heat pumps, central air conditioners,
advanced main air circulating fans; and (2) weatherization
measures including windows and storm doors, added
insulation.
1.
2.
3.
4.
5.
6.
7.
Qualifying electric heat pump water heater must
yield an energy factor of at least 2.0 in the standard
DOE test procedure.
Qualifying split central air conditioning system must
have a SEER of 15 and EER of 12.5.
Qualifying packaged central air conditioning system
must have a SEER of 14 and EER of 12.
Qualifying natural gas, propane or oil water heater
must have an Energy factor of .80 or higher.
Qualifying natural gas, propane or oil furnace or hot
water boiler must have a: Annual fuel utilization
efficiency rate of at least 95.
Qualifying exterior wall, crawl space, basement
exterior wall insulation must have a R-13 or higher
Qualifying floor insulation must have a R-19 or
higher
D. INCENTIVE AMOUNTS. The tax credit amount is 30% of
the installed cost.
E. INCENTIVE LIMITS. The maximum tax credit amount is
$500 for any combination of qualifying energy property and
weatherization measures. The maximum tax credit amounts
are $100 for insulation, and $250 for qualifying energy
property, windows and storm doors.
F. INCENTIVE TIMEFRAME. The tax credit expires December
31, 2015.
G. MISCELLANEOUS.
21.09
Kentucky state corporate income tax credit for Energy
Star homes
A. GENERAL DESCRIPTION. Kentucky provides a corporate
or limited liability entity income tax credit in the amount of
$400 - $800 per Energy Star home sold or built for use as a
principal place of residence. Ky. Rev. Stat. Ann. §141.437.
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer corporations or limited liability entities building or
selling Energy Star homes.
C. QUALIFYING ACTIVITY. Taxpayer must build an Energy
Star home or sell an Energy Star manufactured home. An
Energy Star home is any single-family residence that qualifies
for and receives the Energy Star label under the Energy Star
Program administered by the US Environmental Protection
Agency.
An Energy Star manufactured home is a
manufactured home that meets the Energy Star label under the
Energy Star Program administered by the US Environmental
Protection Agency.
D. INCENTIVE AMOUNTS. The tax credit amount is $800 if
Taxpayer builds an Energy Star home. The tax credit amount
is $400 if Taxpayer sells an Energy Star manufactured home.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME. The tax credit applies in the year
in which the taxpayer completes construction of the Energy
Star home or sells the Energy Star manufactured home. The
tax credit expires December 31, 2015.
G. MISCELLANEOUS. Taxpayer may not take the energy
efficiency tax credit per Ky. Rev. Stat. Ann. § 141.435 et seq.
23.
Maine State Tax Incentives for Renewable Energy and
Green Building
equivalent of the biofuel as compared to the BTU
value of 1 gallon of gasoline.
23.01
Maine state sales tax refund for qualifying community
wind energy property
C. QUALIFYING ACTIVITY. Taxpayer must produce biofuel.
Biofuel is any commercially produced liquid or gas used to
propel motor vehicles or otherwise substitute for liquid or
gaseous fuels that is derived from agricultural crops or
residues or from forest products or by-products, as distinct
from petroleum or other fossil carbon sources.
A. GENERAL DESCRIPTION. Maine provides a sales tax
refund in the amount of 100% of the tax paid on qualifying
community wind energy property. 36 Me. Rev. Stat. Ann.
§2017; 35 Me. Rev. Stat. Ann. §3402.
1.
B. ELIGIBLE TAXPAYERS. The tax refund is available to
Taxpayer contractors or generators of community wind energy
projects purchasing community wind energy property.
1.
2.
Taxpayer must be certified by the ME Public
Utilities Commission and fill out an application with
ME Revenue Services.
C. QUALIFYING ACTIVITY.
Taxpayer must purchase
community wind energy property. Community wind energy
property is tangible personal property that has been physically
incorporated into real property in the development of a
community wind project having nameplate capacity of 10
megawatts (MW) or less.
D. INCENTIVE AMOUNTS. The tax refund amount is 100% of
sales tax paid.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME. Taxpayer must apply for the tax
refund within 3 years of the personal property being physically
incorporated into real property.
G. MISCELLANEOUS.
3.
4.
Biofuel must be liquid or gaseous with a BTU
equivalent to that of 1 gallon of gasoline that
replaces the use of petroleum or liquid fuels derived
from other fossil carbon sources.
Biofuel includes ethanol, methanol derived from
biomass, levulinic acid, biodiesel, pyrolysis oils
from wood, hydrogen or methane from biomass, or
combinations of any of the above that may be used
to propel motor vehicles either alone or in blends
with conventional gasoline or diesel fuels or that
may be used in place of petroleum products in whole
or in part to fire heating devices or any stationary
power device.
Biofuel must be offered for sale and income must be
derived from the commercial production of biofuel.
Biofuel includes blends with petroleum or other
nonbiofuels only on the portion of that blend that the
biofuel constitutes.
D. INCENTIVE AMOUNTS. The tax credit amount is $0.05 per
gallon of biofuel produced.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME. Unused tax credit may be carried
forward 10 years.
G. MISCELLANEOUS.
23.02
Maine state income tax credit for biofuel production
A. GENERAL DESCRIPTION. Maine provides an income tax
credit in the amount of $0.05 per gallon of biofuel production.
36 Me. Rev. Stat. Ann. §5219-X.
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer producers of biofuel.
1.
Taxpayer must be certified by the ME
Commissioner of
Environmental
Protection
regarding the biofuel being produced, including the
quantity of biofuel products, the type of forest or
agricultural product being utilized, the nature and
composition of the biofuel being produced, the
proportion and composition of any nonbiofuel with
which the biofuel is blended, the type of application
for which it is intended to be used, and the BTU
24.
Maryland State Tax Incentives for Renewable Energy
and Green Building
24.01
Maryland state income tax credit for renewable
energy production
A. GENERAL DESCRIPTION. Maryland provides a corporate
or personal income tax credit in the amount of $0.0085/kWh
of renewable energy produced and $0.005/kWh for electricity
generated by co-firing. Md. Code Ann. §10-720; H.B. 464
(2010); S.B. 958 (2011).
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer corporations or individuals producing electricity
generated from renewable sources.
1.
Taxpayer must be certified by the MD Energy
Administration.
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer owners of buildings with a solar, geothermal or
qualifying energy conservation device.
C. QUALIFYING ACTIVITY. Taxpayer must equip buildings
with a solar, geothermal or qualifying energy conservation
device.
1.
Qualifying devices may be used to heat or cool the
structure, to generate electricity to be used in the
structure, or to provide hot water for use in the
structure.
D. INCENTIVE AMOUNTS. The tax credit amount is 100% of
the cost of solar, geothermal, and energy conservation devices.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME.
C. QUALIFYING ACTIVITY. Taxpayer must produce and sell
to third party electricity generated by wind, geothermal
energy, solar energy, hydropower, small irrigation power,
municipal solid waste and biomass resources. Biomass
resources include anaerobic digestion, landfill gas,
wastewater-treatment gas, and cellulosic material derived from
forest-related resources (excluding old-growth timber and mill
residues consisting of sawdust or wood shavings), from waste
pallets and crates, nonhazardous waste material segregated
from other waste materials, or from agricultural sources.
D. INCENTIVE AMOUNTS.
The tax credit amount is
$0.0085/kWh for electricity generated by eligible resources.
The tax credit amount is $0.0050/kWh for electricity
generated by co-firing.
G. MISCELLANEOUS.
24.03
Maryland state property tax exemption for renewable
energy systems
A. GENERAL DESCRIPTION. Maryland provides a property
tax exemption in the amount of 100% of the cost of renewable
energy systems. Md Code Ann. §7-242; H.B. 1171 (2009);
S.B. 621 (2009).
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer owners of renewable energy systems.
E. INCENTIVE LIMITS. The maximum tax credit amount is
$2.5 million over a 5-year period. The statewide aggregate
maximum tax credit amount is $25 million.
C. QUALIFYING ACTIVITY. Taxpayer must own geothermal,
solar photovoltaic (PV), solar hot water system property and
residential wind energy equipment.
F. INCENTIVE TIMEFRAME. The tax credit period is 5 years.
The tax credit expires December 31, 2015. The tax credit is
refundable.
D. INCENTIVE AMOUNTS. The tax exemption amount is
100% of the property tax due.
1.
The tax credit may be canceled if over a 3-year
period, Taxpayer does not claim on average at least
10% of the maximum tax credit amount stated in the
certificate.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME.
G. MISCELLANEOUS.
G. MISCELLANEOUS.
24.04
24.02
Maryland state property tax credit for solar,
geothermal, and energy conservation devices
A. GENERAL DESCRIPTION. Maryland provides a property
tax credit in the amount of 100% the cost of solar, geothermal,
and energy conservation devices. Md. Code Ann. §9-203.
Maryland state property tax financing option for
renewable energy and energy-efficiency systems
A. GENERAL DESCRIPTION. Maryland provides a property
tax financing option for municipalities for renewable energy
and energy-efficiency systems. Md. Code Ann. §9-1501 et
seq.; H.B. 1567 (2009).
B. ELIGIBLE TAXPAYERS. The tax financing is available to
Taxpayer financing renewable energy or eligible energyefficiency improvements.
C. QUALIFYING ACTIVITY.
Taxpayer must finance
renewable energy or eligible energy-efficiency improvements.
1.
Renewable energy or eligible energy-efficiency
improvements for commercial property owners must
not have a capacity of more than 100 kw.
D. INCENTIVE AMOUNTS. The tax financing amount varies
by local jurisdiction.
24.06
Maryland state property tax exemption for solar and
geothermal heating and cooling systems
A. GENERAL DESCRIPTION. Maryland provides a property
tax assessment exemption in the amount of 100% of the value
of solar and geothermal heating and cooling systems. Md.
Code Ann. §8-240.
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer owners of solar and geothermal heating and cooling
system property.
C. QUALIFYING ACTIVITY. Taxpayer must own solar and
geothermal heating and cooling systems.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME.
D. INCENTIVE AMOUNTS. The tax exemption amount is
100% of the property tax due.
G. MISCELLANEOUS.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME.
24.05
Maryland state sales tax exemption for geothermal,
solar and wind energy equipment
A. GENERAL DESCRIPTION. Maryland provides a sales tax
exemption in the amount of 100% of the tax on geothermal,
solar and wind energy equipment. Md. Code Ann. §11-230;
H.B. 1171 (2009); S.B. 621 (2009).
B. ELIGIBLE TAXPAYERS.
Taxpayer purchasers
geothermal, solar and wind energy equipment.
of
C. QUALIFYING ACTIVITY. Taxpayer must purchase of
geothermal, solar energy and residential wind energy
equipment. Geothermal equipment is equipment that uses
ground loop technology to heat and cool a structure. Solar
energy equipment is equipment that uses solar energy to heat
or cool a structure, generate electricity to be used in a
structure, or provide hot water for use in a structure.
Residential wind energy equipment is equipment installed on a
residential property that uses wind energy to generate
electricity for use in a residential structure on that property.
1.
G. MISCELLANEOUS.
24.07
Maryland state income tax credit for cellulosic ethanol
technology research and development
A. GENERAL DESCRIPTION. Maryland provides an income
tax credit in the amount of 10% of costs for cellulosic ethanol
technology research and development. Md. Code Ann. §10726; Md. Regs. Code §24.05.12.
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayers incurring cellulosic ethanol technology research
and development expenses.
1.
2.
Solar energy equipment does not include equipment
that is part of a non-solar energy system or that uses
any type of recreational facility or equipment as a
storage medium.
D. INCENTIVE AMOUNTS.
100% of sales tax due.
The tax exemption amount is
Taxpayer must be certified by the MD Department
of Business and Economic Development.
Taxpayer partners or members of a pass-through
entity are allocated tax credit amounts as agreed to
in writing by the Taxpayer allocatees. If there is no
written agreement governing the allocation of the
tax credit, the tax credit is allocated in the same
proportion as other items are allocated for the
taxable year.
C. QUALIFYING ACTIVITY. Taxpayer must incur cellulosic
ethanol technology research and development expenses.
Cellulosic ethanol technology is technology that is used to
develop cellulosic biomass for conversion to ethanol fuel.
E. INCENTIVE LIMITS.
1.
F. INCENTIVE TIMEFRAME.
G. MISCELLANEOUS.
2.
Cellulosic ethanol technology research or
development activities must be performed,
conducted, or carried on in Maryland.
Cellulosic ethanol technology research or
development activities must consume all supplies in
Maryland.
D. INCENTIVE AMOUNTS. The tax credit amount is 10% of
cellulosic ethanol technology research and development
expenses.
E. INCENTIVE LIMITS. The statewide maximum annual tax
credit amount is $250,000. If the total amount of tax credits
applied for exceeds the statewide maximum annual tax credit
amount, the tax credit is prorated credit amount for each
qualifying applicant.
F. INCENTIVE TIMEFRAME. The tax credit expires December
31, 2016. Taxpayer must apply for the tax credit by
September 15 of the calendar year following the end of the
taxable year in which the qualifying research and development
expenses were incurred.
The DBED must issue the
certification by December 15th. Taxpayer must file an
amended income tax return for the taxable year in which the
Maryland qualifying research and development expense was
incurred, and attach a copy of the DBED's certification to the
amended income tax return. Unused tax credit may be carried
forward 15 tax years.
G. MISCELLANEOUS. The tax credit amount claimed must be
added to federal taxable income to calculate Taxpayer’s
Maryland modified income.
24.08
Maryland state income tax credit for biodiesel heating
fuel
A. GENERAL DESCRIPTION. Maryland provides an income
tax credit generally in the amount of 6-8% the cost of green
non-residential and residential multifamily buildings and 2030% the cost of green building components. Md. Code Ann.
§10-722; Md. Energy Admin., Emergency Regs.§§ 14.26.02.02
and -02.04 to -02.10; Md. Dept. of Planning, Regs. §
34.04.07.04.
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer owners of green non-residential and residential
multifamily buildings.
C. QUALIFYING ACTIVITY. Taxpayer must construct or
rehabilitate green non-residential and residential multifamily
buildings. Green non-residential and residential multifamily
buildings are multifamily buildings of at least 20,000 square
feet that are constructed or rehabilitated to meet criteria set
forth by the U.S. Green Building Council or other similar
criteria.
1.
2.
3.
A. GENERAL DESCRIPTION. Maryland provides a corporate
or personal income tax credit in the amount of $0.03 per
gallon of biodiesel heating fuel purchased. Md. Code Ann.
§10-727.
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer corporations and individuals purchasing of biodiesel
used for space or water heating.
C. QUALIFYING ACTIVITY. Taxpayer must purchase of
biodiesel used for space or water heating. The heating oil
blend must contain at least 5% biodiesel (B5).
4.
D. INCENTIVE AMOUNTS. The tax credit amount is $0.03 per
gallon of biodiesel purchased.
E. INCENTIVE LIMITS.
amount is $500.
The maximum annual tax credit
F. INCENTIVE TIMEFRAME. The tax credit expires December
31, 2012.
D. INCENTIVE AMOUNTS. The tax credit amount are:
1.
G. MISCELLANEOUS.
24.09
Maryland state income tax credit for green building
Green non-residential and residential multifamily
buildings that are newly constructed must be located
on a qualifying brownfields site, or in a priority
funding area, and not in a wetlands area.
Green non-residential and residential multifamily
buildings that are rehabilitated must not increase the
size of the building by 25% or be located in a
priority funding area.
For newly constructed and rehabilitated green whole
buildings that include green tenant space buildings
must be certified as meeting, at a minimum, the
requirements to qualify for a Gold rating in the
LEED Rating System LEED 2009 for New
Construction and Major Renovations in the
following categories:
(i).
Sustainable Sites, Credit 8—Light
Pollution Reduction,
(ii). Water Efficiency, Credit 3—Water Use
Reduction,
(iii). Materials and Resources, Credit 2—
Construction Waste Management, and
(iv). Energy and Atmosphere, Credits 1
through 6, with at least 15 points.
Newly constructed and rehabilitated green tenant
space is a building space that uses not more than 65
percent of the energy attributable to a reference
building meeting the applicable ASHRAE 90.1-1999
standards and, at a minimum, is certified to qualify
for a Gold rating in the LEED Rating System 2009
for Commercial Interiors in certain categories.
2.
3.
20% of the incremental cost for building-integrated
photovoltaics;
25% of the incremental cost for nonbuildingintegrated photovoltaics;
30% of the costs, including installation, for a fuel
cell;
4.
5.
6.
7.
8.
25% of the costs, including installation, for a wind
turbine;
6% of the allowable costs for the construction of or
rehabilitation to a green base building or green
tenant space;
8% of the allowable costs for the construction or
rehabilitation of a green whole building.
Allowable costs include amounts for construction or
rehabilitation; commissioning costs; interest paid or
incurred during the construction or rehabilitation
period; architectural, engineering, and other
professional fees allocable to construction or
rehabilitation; closing costs for construction,
rehabilitation, or mortgage loans; recording taxes
and filing fees incurred with respect to construction
or rehabilitation; and finishes and furnishings
consistent with the regulations, lighting, plumbing,
electrical wiring, and ventilation.
Allowable costs does not include the cost of
telephone systems and computers, other than
electrical wiring costs; legal fees allocable to
construction or rehabilitation; site costs, including
temporary electric wiring, scaffolding, demolition
costs, and fencing and security facilities; finishes or
furnishings that are not consistent with the
regulations; or the cost of purchasing or installing
fuel cells, wind turbines, or photovoltaic modules.
E. INCENTIVE LIMITS. The maximum tax credit amount is
the tax credit for allowable project costs of $120/sq. ft.
(whole/base building), $60/sq. ft. (tenant space), $3/watt for
PV, and $1,000/kW for fuel cells.
F. INCENTIVE TIMEFRAME. The tax credit expires December
31, 2011. Unused tax credit may be carried forward 10 years.
1.
2.
Taxpayer must show they are likely to place the
property in service within three years of submitting
their initial credit certificate application.
The certificate must expire no more than nine
months after the date the property is expected to be
placed in service, unless the taxpayer receives an
extension from the administration.
G. MISCELLANEOUS.
24.10
Maryland state property tax credit for LEED Silver or
better green buildings
A. GENERAL DESCRIPTION. Maryland provides a property
tax credit in the amount of 100% of the tax on LEED Silver
green buildings. Md. Code Ann. §9-242.
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer owners of LEED Silver or better green buildings.
C. QUALIFYING ACTIVITY. Taxpayer must own LEED Silver
or better green buildings.
D. INCENTIVE AMOUNTS. The tax credit amount is 100% of
the property tax paid.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME.
G. MISCELLANEOUS.
24.11
Maryland state sales tax exemption for wood heating
fuel
A. GENERAL DESCRIPTION. Maryland provides a sales tax
exemption in the amount of 100% of tax on wood heating fuel.
Md. Code Ann. §11-207.
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer purchasers of all-wood or refuse-derived fuel used
for residential heating purposes.
C. QUALIFYING ACTIVITY. Taxpayer must purchase allwood or refuse-derived fuel used for residential heating
purposes.
D. INCENTIVE AMOUNTS.
100% of the sales tax due.
The tax exemption amount is
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME.
G. MISCELLANEOUS.
24.12
Maryland state income tax credit for LEED Gold
historical buildings
A. GENERAL DESCRIPTION. Maryland provides an income
tax credit in the amount of 25% of the cost of historically
certified LEED Gold green buildings. Md. Code Ann. §5A303; H.B. 475 (2010); H.B. 668 (2012).
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer owners of LEED Gold or better qualified
rehabilitated structures.
1.
2.
Taxpayer must be certified by the MD Historical
Trust and the MD Department of Planning.
Taxpayer may allocate the tax credit among its
partners, members, or shareholders of an entity in
any manner agreed to.
C. QUALIFYING ACTIVITY. Taxpayer must own LEED Gold
or better qualified rehabilitated structure.
A qualified
rehabilitated structure is a building other than a single-family,
owner-occupied residence that is located in (1) a commercial
area designated by January 1, 2010, either by the Secretary of
Housing and Community Development as a Main Street
Maryland Community or by the Mayor of Baltimore City as a
Main Street or, (2) beginning in fiscal 2012, a sustainable
community. The rehabilitation must retain specified minimum
percentages of internal and external walls and internal
framework during the rehabilitation.
1.
2.
3.
Qualified rehabilitated structure must be a building
that meets or exceeds the current version of the U.S.
Green Building Council's Leadership in Energy and
Environmental Design (LEED) green building rating
system gold rating, or achieves at least a comparable
numeric rating according to a nationally recognized,
accepted, and appropriate numeric green building
rating system, guideline, or standard approved by
the Secretaries of Budget and Management and
General Services.
Qualified rehabilitated structures must meet
substantial expenditure thresholds and the U.S.
Secretary of the Interior’s Standards for
Rehabilitation (36 CFR 67).
A substantial
rehabilitation is the rehabilitation of a structure for
which the qualified rehabilitation expenditures over
a 24-month period exceed (1) $5,000 for a singlefamily, owner-occupied residence; (2) the greater of
50% of the adjusted basis of the property, or
$25,000 for a qualified rehabilitated structure
located in a Main Street Maryland Community; or
(3) the greater of the adjusted basis of the property
or $25,000 for all other properties.
A single-family, owner-occupied residence is a
structure or a portion of a structure occupied by the
owner and the owner’s immediate family as their
primary or secondary residence. Single-family,
owner-occupied residence includes a residential unit
in a cooperative project owned or leased to a
cooperative housing corporation and leased for
exclusive occupancy to, and occupied by, a member
of the corporation and the member’s immediate
family.
D. INCENTIVE AMOUNTS. The tax credit amount is 25% of
the qualified rehabilitation expenditure.
Qualified
rehabilitation expenditure is any amount that:(i)is properly
chargeable to a capital account;(ii) is expended in the
rehabilitation of a structure that by the end of the calendar year
in which the certified rehabilitation is completed is a certified
heritage structure;(iii) is expended in compliance with a plan
of proposed rehabilitation.
1.
Qualified rehabilitation expenditure does not
include: (1) State or local grant; (2)grant made from
the proceeds of tax–exempt bonds issued by the
State, a political subdivision of the State, or an
instrumentality of the State or of a political
subdivision of the State; (3) State tax credit other
than the tax credit; or (4) other financial assistance
from the State or a political subdivision of the State,
other than a loan that must be repaid at an interest
rate that is greater than the interest rate on general
obligation bonds issued by the State at the most
recent bond sale prior to the time the loan is made.
E. INCENTIVE LIMITS. The maximum tax credit amounts are
$3 million for a commercial rehabilitation (any building that is
not a single-family, owner-occupied residence) and $50,000
for all other rehabilitations.
F. INCENTIVE TIMEFRAME. The tax credit expires June 30,
2014.
G. MISCELLANEOUS. The tax credit may be recaptured
during a 5 year period starting during the taxable year in
which a certified rehabilitation is completed if any
disqualifying work is performed on the certified heritage
structure for which the certified rehabilitation has been
completed.
24.13
Maryland state sales tax exemption for energyefficient equipment
A. GENERAL DESCRIPTION. Maryland provides a sales tax
exemption in the amount of 100% the tax on energy-efficient
appliances. Md. Code Ann. §11-226; Md. Regs. Code
03.06.01.44.
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer purchasers of Energy Star product or solar water
heater.
C. QUALIFYING ACTIVITY. Taxpayer must purchase Energy
Star product or solar water heater. An Energy Star product is
an air conditioner, clothes washer, clothes dryer, furnace, heat
pump, standard size refrigerator, compact fluorescent light
bulb, dehumidifier, boiler, or programmable thermostat that
has been designated as meeting or exceeding the applicable
Energy Star efficiency requirements developed by the U.S.
Environmental Protection Agency and the U.S. Department of
Energy and is authorized to carry the Energy Star label. A
solar water heater is a system composed of equipment
designed to heat water by the use of solar energy.
1.
2.
A standard size refrigerator is a refrigerator with a
factory-built, self-contained cabinet that is marketed
for use in a private residence or household, whether
or not used in a private residence.
A compact fluorescent light bulb is a fluorescent
light bulb that has been compressed into the size of a
standard-issue screw-in incandescent light bulb.
D. INCENTIVE AMOUNTS.
100% sales tax due.
E. INCENTIVE LIMITS.
The tax exemption amount is
F. INCENTIVE TIMEFRAME. The tax exemption period is the
weekend that consists of the Saturday immediately preceding
the third Monday in February through the third Monday in
February.
G. MISCELLANEOUS.
24.14
Maryland state sales tax exemption for electricity
from solar and residential wind equipment
A. GENERAL DESCRIPTION. Maryland provides a sales tax
exemption in the amount of 100% the tax on electricity from
solar and residential wind equipment. Md. Code Ann. §11207(a); H.B. 502 (2011).
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer purchasers of electricity from solar and residential
wind equipment.
1.
Taxpayer must be a eligible customer-generator.
Eligible customer-generator is a customer that owns
and operates, leases and operates, or contracts with a
third party that owns and operates a biomass, micro
combined heat and power, solar, fuel cell, or wind
electric generating facility that:(i) is located on the
customer's premises or contiguous property; (ii) is
interconnected and operated in parallel with an
electric company's transmission and distribution
facilities; and (iii) is intended primarily to offset all
or part of the customer's own electricity
requirements.
C. QUALIFYING ACTIVITY.
Taxpayer must purchase
electricity from solar and residential wind equipment.
Residential wind energy equipment is equipment installed on
residential property that uses wind energy to generate
electricity to be used in a residential structure on the property.
Solar energy equipment is equipment that uses solar energy to
heat or cool a structure, generate electricity to be used in a
structure or supplied to the electric grid, or provide hot water
for use in a structure.
1.
Solar energy equipment does not include equipment
that is part of a nonsolar energy system or that uses
any type of recreational facility or equipment as a
storage medium.
D. INCENTIVE AMOUNTS.
100% sales tax due.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME.
G. MISCELLANEOUS.
The tax exemption amount is
24.15
Maryland state income tax credit for electric vehicle
recharging equipment
A. GENERAL DESCRIPTION. Maryland provides an income
tax credit in the amount of 20% of the cost of qualifying
electric vehicle recharging equipment. H.B. 163 (2011).
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayers placing qualifying electric vehicle recharging
equipment property in service.
1.
Taxpayer must be certified by the MD Energy
Administration.
C. QUALIFYING ACTIVITY. Taxpayer must place in service
qualifying electric vehicle recharging equipment. Qualified
electric vehicle recharging equipment is property used for the
recharging of motor vehicles propelled by electricity that
meets the definition of “qualified alternative fuel vehicle
refueling property” under IRC §30C.
D. INCENTIVE AMOUNTS. The tax credit amount is 20% of
the cost of qualifying electric vehicle recharging equipment.
E. INCENTIVE LIMITS. The maximum tax credit amount is
$400 per individual recharging station.
The statewide
maximum annual amount for 2011 is $400,000.
F. INCENTIVE TIMEFRAME. The tax credit expires December
31, 2012. Unused tax credit may not be carried forward.
1.
Hydrogen fuel cell equipment installed on a vehicle,
or any vehicle originally equipped with a hydrogen
fuel cell only is eligible for the credit during the
2010 tax year.
G. MISCELLANEOUS.
24.16
Maryland state sales tax exemption for the
manufacturing equipment of Energy Star windows
and doors
A. GENERAL DESCRIPTION. Maryland provides a sales tax
exemption in the amount of 100% of the tax on the
manufacturing machinery or equipment of Energy Star
windows and doors. Md. Code Ann. §11-210(e); H.B. 1301
(2012).
B. ELIGIBLE
TAXPAYERS.
Taxpayer
purchasers
manufacturing machinery or equipment of Energy Star
windows and doors.
C. QUALIFYING ACTIVITY.
Taxpayer must purchase
manufacturing machinery or equipment used directly and
primarily to produce Energy Star windows and doors for
residential real property.
1.
Qualifying equipment includes electricity, fuel and
other utilities used to operate that machinery or
equipment.
D. INCENTIVE AMOUNTS.
100% of sales tax due.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME.
G. MISCELLANEOUS.
The tax exemption amount is
25.
Massachusetts State Tax Incentives for Renewable
Energy and Green Building
25.01
Massachusetts state excise tax deduction for solar or
wind powered systems
2.
25.02
Massachusetts provides a
A. GENERAL DESCRIPTION.
corporate excise tax deduction in the amount of 100% of the
cost of any solar or wind powered climatic control or water
heating units used exclusively in a trade or business. Mass.
Gen. Laws ch. 63, §38H.
A qualifying system is excluded from the tangible
property measure of the excise tax.
Massachusetts state property tax exemption for
renewable energy property
A. GENERAL DESCRIPTION.
Massachusetts provides a
property tax exemption in the amount of 100% of the tax on
solar and wind energy systems used as a primary or auxiliary
power system. Mass. Gen. Laws ch. 59 §5 (45, 45A).
B. ELIGIBLE TAXPAYERS. The tax deduction is available to
Taxpayer corporations placing solar or wind powered climatic
control or water heating units in service used exclusively in a
trade or business.
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer owners of solar and wind energy systems used as a
primary or auxiliary power system.
C. QUALIFYING ACTIVITY. Taxpayer must install a solar or
wind powered climatic control or water heating units.
C. QUALIFYING ACTIVITY. Taxpayer must own of solar and
wind energy systems used as a primary or auxiliary power
system.
1.
2.
3.
4.
Solar or wind powered climatic control unit and any
solar or wind powered water heating unit includes
labor expenditures.
Qualifying system must be located in Massachusetts
and used exclusively in the trade or business of the
business.
Qualifying system manufacturer’s BTU impact
statement must be certified by the MA Director of
Building Construction.
Solar or wind powered climatic control unit and any
solar or wind powered water heating unit does not
include any other climate control unit, any water
heating unit or other unit used ancillary to any solar
or wind powered unit.
D. INCENTIVE AMOUNTS. The tax deduction amount is 100%
of the cost of the solar or wind powered climatic control or
water heating units. In calculating the deduction, the net
income for the taxable year and all succeeding taxable years
must be computed without any exemption, credit or deduction
for such expenditures or for depreciation of the property.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME.
G. MISCELLANEOUS. The tax deduction may be recaptured
for a period of 10 years if there is any change of use
disqualifying the system.
1.
The gain or loss on the sale or disposition of a
qualifying system must be the gain or loss resulting
as if the deduction has not been elected and the cost
or other basis of the units has been reduced by
straight-line depreciation based on the useful life of
the qualifying system. The basis is $0 if the sale or
disposition occurs within 3 years of the date the
qualifying system is placed in service.
1.
Hydropower facilities are also exempt from local
property tax for a 20-year period if a system owner
enters into an agreement with the city or town to
make a payment (in lieu of taxes) of at least 5% of
its gross income in the preceding calendar year.
D. INCENTIVE AMOUNTS. The tax credit amount is 100% of
the property tax due.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME. The tax exemption period is 20
years.
G. MISCELLANEOUS.
25.03
Massachusetts state income tax deduction for energy
conservation or alternative energy patents
A. GENERAL DESCRIPTION.
Massachusetts provides a
corporate excise and personal income tax deduction in the
amount of 100% of the income received from the sale or lease
of a U.S. patent beneficial for energy conservation or
alternative energy development and any income received from
the sale or lease of personal or real property or materials
manufactured and subject to the approved patent. Mass. Gen.
Laws ch. 62, § 2(a)(2)(G).
B. ELIGIBLE TAXPAYERS. The tax deduction is available to
Taxpayer corporations or individuals with income from a
qualifying patent beneficial for energy conservation or
alternative energy development.
C. QUALIFYING ACTIVITY. Taxpayer must derive income
from a qualifying patent. Income from a qualifying patent is
any income, including royalty income, received from the sale,
2.
lease or other transfer of tangible, intangible, personal or real
property or materials manufactured in the Commonwealth
subject to such patent.
1.
Qualifying patent must certified as beneficial for
energy conservation or alternative energy
development by the MA Department of Energy
Resources.
3.
Renewable energy source property must have the
original use begin with Taxpayer.
Renewable energy source property must reasonably
be expected to remain in operation for at least 5
years.
D. INCENTIVE AMOUNTS. The tax credit amount is 15% of
the cost of the renewable energy source property.
D. INCENTIVE AMOUNTS. The tax deduction amount is 100%
of the income received.
1.
E. INCENTIVE LIMITS.
The cost of the renewable energy source property is
the total of the purchase price for any renewable
energy source property, plus installation cost less
any credits received pursuant to the IRC and less
grants or rebates received from the US Department
of Housing and Urban Development.
F. INCENTIVE TIMEFRAME. The tax deduction period is 5
years from the sooner of the date of issuance of the U.S. patent
or the date of approval by the MA Department of Energy
Resources.
E. INCENTIVE LIMITS. The maximum tax credit amount is
$1,000.
G. MISCELLANEOUS.
F. INCENTIVE TIMEFRAME.
G. MISCELLANEOUS.
25.04
Massachusetts state income tax credit for renewable
energy systems in primary residences
25.05
A. GENERAL DESCRIPTION.
Massachusetts provides an
income tax credit in the amount of 15% of the cost of a
renewable-energy system installed on a primary residence.
Mass. Gen. Laws Ch. 62, §6(d). Mass. Regs. Code 830 CMR
§62.6.1(2).
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer owners or tenants of residential property installed
with renewable-energy system.
1.
2.
Taxpayer may be owners or occupants for a newly
constructed home.
Taxpayers who are joint owners of a residential
property share any tax credit available to the
property in the same proportion as their ownership
interest.
C. QUALIFYING ACTIVITY. Taxpayer must install renewable
energy source property in residential property. Renewable
energy source property is property that when installed in
connection with a dwelling, transmits or uses solar energy or
any other form of specified renewable energy, for the purpose
of heating or cooling the dwelling, providing hot water for use
within the dwelling, or for producing electricity for such
purposes, or wind energy for non-business, residential
purposes. Renewable energy source property include solar
water and space heating, photovoltaics (PV), and wind-energy
systems.
1.
Renewable energy source property does not include
heating and cooling systems that supplement
renewable energy source equipment in heating or
cooling a dwelling, and which use a form of energy
other than solar or wind.
Massachusetts state sales tax exemption for renewable
energy equipment in primary residences
A. GENERAL DESCRIPTION. Massachusetts provides a sales
tax exemption in the amount of 100% of the tax on equipment
directly relating to any solar, wind powered or heat pump
system, which is being utilized as a primary or auxiliary power
system of a principal residence. Mass. Gen. Laws 64H
§6(dd); Massachusetts DOR Directive 86-2, 06/12/1986;
Massachusetts
Letter
Ruling
83-91,
10/31/1983;
Massachusetts Letter Ruling 84-88, 09/25/1984 .
Massachusetts DOR Directive 86-2, 06/12/1986.
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer purchasers or lessees of equipment directly relating
to any solar, wind powered or heat pump system, which is
being utilized as a primary or auxiliary power system of a
principal residence.
1.
Taxpayer must complete and present Massachusetts
Tax Form ST-12 to seller.
C. QUALIFYING ACTIVITY. Taxpayer must purchase or lease
equipment directly relate to a solar, wind or heat pump system
used as a primary or auxiliary power system for heating or
otherwise supplying energy needs.
1.
2.
3.
Qualifying equipment includes the fans and
ductwork as components of solar heating systems to
taxpayers for use in their principal residences.
Qualifying equipment does not includes passive airto-air heat exchanger.
Qualifying equipment does not include equipment
that serves as a structural component of a dwelling,
such as glass for a solar sunspace.
4.
Qualifying equipment does not include equipment if
purchased for a principal residence outside the state,
or if the equipment is for a commercial building or a
vacation home.
D. INCENTIVE AMOUNTS. The tax credit amount is 100% of
the sales tax due.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME.
G. MISCELLANEOUS.
25.06
Massachusetts state sales tax exemption for wind
turbine equipment in furnishing electricity
A. GENERAL DESCRIPTION. Massachusetts provides a sales
tax exemption in the amount of 100% of the tax on wind
turbine equipment used directly and exclusively in furnishing
electricity to consumers through mains, lines, or pipes. Mass.
Gen. Laws 64H §6(s); Massachusetts Letter Ruling 10-03,
07/07/2010; Massachusetts Letter Ruling 12-7, 07/02/2012.
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer purchasers of wind turbine equipment.
1.
Taxpayer must complete and present Massachusetts
Tax Form ST-12 to seller.
C. QUALIFYING ACTIVITY. Taxpayer must purchase wind
turbine equipment used directly and exclusively in furnishing
electricity to consumers through mains, lines, or pipes.
1.
Qualifying equipment includes the tower, the
turbine, component parts, adjuncts or attachments
necessary for the turbine to furnish the electricity to
consumers through electrical lines, or to the extent
that they are used or required to control, regulate or
operate the turbine
D. INCENTIVE AMOUNTS. The tax credit amount is 100% of
the sales tax due.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME.
G. MISCELLANEOUS.
26.
Michigan State Tax Incentives for Renewable Energy
and Green Building
26.01
Michigan state business tax credit for alternative
energy research, development, and manufacturing
3.
A. GENERAL DESCRIPTION. Michigan provides a business
tax credit in the amount of 10% of increased business activity
in alternative energy research, development, and
manufacturing. Mich. Comp. Laws §208.1429; Mich. Comp.
Laws. §207.821 et seq. [Repealed by ACT 39 OF 2011]
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer businesses engaged in alternative energy research,
development, and manufacturing.
1.
Taxpayer must be certified by the MI Next Energy
Authority.
C. QUALIFYING ACTIVITY.
Taxpayer must engage in
alternative energy research, development, and manufacturing.
Alternative energy research, development, and manufacturing
includes research, development, or manufacturing of an
alternative energy marine propulsion system, an alternative
energy system, an alternative energy vehicle, alternative
energy technology, or renewable fuel. Alternative energy
technologies include: fuel cells, PV, biomass, solar thermal
heating and cooling, wind energy, CHP, microturbines,
miniturbines, Stirling engines, electricity storage systems, and
clean fuel energy systems powered by methane, natural gas,
methanol, ethanol, or hydrogen.
Alternative energy
technology is equipment, component parts, materials,
electronic devices, testing equipment, and related systems that
are specifically designed, specifically fabricated, and used
primarily for 1 or more of the following: (i) the storage,
generation, reformation, or distribution of clean fuels
integrated within an alternative energy system or alternative
energy vehicle, not including an anaerobic digester energy
system or a hydroelectric energy system, for use within the
alternative energy system or alternative energy vehicle; (ii) the
process of generating and putting into a usable form the
energy generated by an alternative energy system; (iii) a
microgrid; (iv) research and development of an alternative
energy vehicle; (v) research, development, and manufacturing
of an alternative energy system; (vi) research, development,
and manufacturing of an anaerobic digester energy system;
(vii) research, development, and manufacturing of a
hydroelectric energy system.
1.
2.
4.
Alternative energy marine propulsion system is an
onboard propulsion system or detachable outboard
propulsion system for a watercraft that is powered
by an alternative energy system and that is the
singular propulsion system for the watercraft.
Alternative energy marine propulsion system does
not include battery powered motors designed to
assist in the propulsion of the watercraft during
fishing or other recreational use.
5.
6.
7.
Alternative energy system is the small-scale
generation or release of energy from 1 or any
combination of the following types of energy
systems:(i) a fuel cell energy system; (ii) a
photovoltaic energy system; (iii) a solar-thermal
energy system; (iv) a wind energy system; (v) a
CHP energy system; (vi) a microturbine energy
system; (vii) a miniturbine energy system; (viii) a
Stirling cycle energy system; (ix) a battery cell
energy system; (x) a clean fuel energy system; (xi)
an electricity storage system; (xii)a biomass energy
system; or (xiii) a thermoelectric energy system.
Alternative energy vehicle is: (i) an alternative
fueled vehicle - a motor vehicle that can only be
powered by a clean fuel energy system and can only
be fueled by a clean fuel; (ii) a fuel cell vehicle - a
motor vehicle powered solely by a fuel cell energy
system; (iii) an electric vehicle - a motor vehicle
powered solely by a battery cell energy system. (iv)
a hybrid vehicle - a motor vehicle that can only be
powered by an internal combustion engine and 1 or
more alternative energy systems; (v) a solar vehicle a motor vehicle powered solely by a photovoltaic
energy system.
Alternative energy technology does not include
those component parts of an alternative energy
system that are required regardless of the energy
source.
Qualifying microgrid is the lines, wires, fuel lines
and fuel reformers, and controls to connect 2 or
more alternative energy systems.
Qualifying renewable fuel is: (i) biodiesel or
biodiesel blends containing at least 20% biodiesel.
Biodiesel is a diesel fuel substitute consisting of
methyl or ethyl esters produced from the
transesterification of animal or vegetable fats with
methanol or ethanol; or (ii) biomass. Biomass is
residues from the wood and paper products
industries, residues from food production and
processing, trees and grasses grown specifically to
be used as energy crops, and gaseous fuels produced
from solid biomass, animal wastes, municipal waste,
or landfills.
D. INCENTIVE AMOUNTS. The tax credit amount is 10% of
the amount by which the business's adjusted qualifying
business activity performed in Michigan, outside of a
Renaissance Zone, for a tax year exceeds such activity for the
2001 tax year.
E. INCENTIVE LIMITS. The maximum tax credit amount is
the incremental tax liability attributable to qualifying business
activity.
F. INCENTIVE TIMEFRAME. The tax credit is repealed.
G. MISCELLANEOUS.
26.02
Michigan state payroll tax credit for alternative
energy technology businesses
A. GENERAL DESCRIPTION. Michigan provides a payroll tax
credit in the amount of 100% of the qualifying payroll amount
for alternative energy technology businesses. Mich. Comp.
Laws §208.1429; Mich. Comp. Laws §207.821 et seq.
[Repealed by ACT 39 OF 2011]
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer alternative energy technology businesses paying
qualifying payroll, located in an alternative energy zone.
1.
An alternative energy zone is a renaissance zone
designated as an alternative energy zone by the
board of the Michigan strategic fund under the
Michigan Renaissance Zone Act.
C. QUALIFYING ACTIVITY. Taxpayer must own a renewable
facility. A renewable facility is a facility that creates energy
directly or fuel from the wind, the sun, or wide variety of
biomass-based materials or a facility that focuses on research,
development, or manufacturing of systems or components of
systems used to create energy, green biodiesel, or advanced
battery technology or fuel from renewable sources.
D. INCENTIVE AMOUNTS. The tax abatement amount is
100% of the business tax, state education tax, property tax, or
local income tax due.
E. INCENTIVE LIMITS.
The maximum cumulative tax
abatement amount is $10 million.
F. INCENTIVE TIMEFRAME.
period is 15 years.
1.
C. QUALIFYING ACTIVITY. Taxpayer must be an alternative
energy technology businesses that pays qualifying payroll.
D. INCENTIVE AMOUNTS. The tax credit amount is 100% of
the payroll of the Taxpayer attributable to all qualifying
employees multiplied by the tax rate for that tax year.
Qualifying employee is an individual who is
employed by an alternative energy technology
businesses, whose job responsibilities are related to
the research, development, or manufacturing
activities of the qualifying alternative energy entity,
and whose regular place of employment is within an
alternative energy zone.
E. INCENTIVE LIMITS. The tax credit is refundable.
F. INCENTIVE TIMEFRAME. The tax credit is repealed.
G. MISCELLANEOUS.
26.03
Michigan state tax abatements for renewable energy
renaissance zones
A. GENERAL DESCRIPTION.
Michigan provides a tax
abatement in the amount of 100% of the business tax, state
education tax, personal and real property taxes, and local
income taxes for renewable facilities located in renewable
energy renaissance zones. Mich. Comp. Laws §125.2681 et
seq.; H.B. 5555 (2010).
B. ELIGIBLE TAXPAYERS. The tax abatements are available
to Taxpayer owners of renewable energy facilities located in
renewable energy renaissance zones.
1.
Renaissance zone designations are approved by the
MI State Administrative Board based upon
recommendations from the MI Strategic Fund.
Tax abatement phases out in 25% increments over
the last 3 years of the zone designation.
G. MISCELLANEOUS.
26.04
1.
The maximum tax abatement
Michigan state personal property tax exemption for
alternative energy technology manufacturing and
research
A. GENERAL DESCRIPTION. Michigan provides a property
tax exemption in the amount of 100% of the tax on alternative
energy technology manufacturing and research property.
Mich. Comp. Laws §211.9(i); Mich. Comp. Laws §207.821 et
seq.
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer owners of alternative energy technology
manufacturing and research property and nonresidential
alternative technology owners.
C. QUALIFYING ACTIVITY. Taxpayer must own of alternative
energy technology manufacturing and research property.
Alternative energy technology manufacturing and research
property includes alternative energy systems less than 2
megawatts (MW), or integrated combinations of alternative
energy systems of no more than 10 MW. Alternative energy
systems include: fuel cells, PV, solar thermal heating and
cooling, wind energy, CHP, microturbines, miniturbines,
Stirling engines, electricity storage systems, and clean fuel
energy systems powered by methane, natural gas, methanol,
ethanol or hydrogen. Clean fuels include renewable fuels such
as biodiesel and fuels from biomass.
1.
2.
Alternative energy technology manufacturing and
research property includes alternative energy
vehicles. Alternative energy vehicles include
hydraulic hybrid vehicles.
Alternative energy technology manufacturing and
research property includes the personal property of
an alternative energy technology business and the
3.
4.
personal property of a business not engaged in
alternative-energy technology that is used solely for
the purpose of researching, developing or
manufacturing alternative energy technologies.
Qualifying
alternative
energy
technology
manufacturing and research property must be new to
Michigan and must not have previously been subject
to or exempted from Michigan taxation.
Qualifying
alternative
energy
technology
manufacturing and research property must be
certified by the MI Next Energy Authority in order
to qualify for the exemption.
technology includes equipment, component parts, materials,
electronic devices, testing equipment, and other related
systems that are specifically designed or fabricated and used
primarily for 1 or more of the following: (i) the storage,
generation, reformation, or distribution of clean fuels
integrated within a photovoltaic system; (ii) the process of
utilizing photovoltaic energy to generate electricity for use by
consumers.
1.
2.
D. INCENTIVE AMOUNTS. The tax exemption amount is
100% of the property tax due.
D. INCENTIVE AMOUNTS. The tax credit amount is 25% of
the cost of the qualifying facility.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME.
December 31, 2012.
Qualifying photovoltaic systems include batteries
for power storage.
Taxpayer must enter into an agreement to create at
least 250 qualifying new jobs and to make at least
$100 million in a qualifying capital investment.
The tax exemption expires
E. INCENTIVE LIMITS. The maximum annual tax credit
amount is $25 million. The maximum cumulative tax credit
amount is $75 million. The tax credit is refundable.
G. MISCELLANEOUS.
F. INCENTIVE TIMEFRAME.
26.05
Michigan state income tax credit for photovoltaic
energy manufacturing facilities
A. GENERAL DESCRIPTION. Michigan provides an income
tax credit over 2 years in the amount of 25% of the capital
investments in a new facility for development and
manufacturing of photovoltaic energy, photovoltaic systems,
or other photovoltaic technology. Mich. Comp. Laws Ann.
§208.1430. [Repealed by ACT 39 OF 2011].
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer owners of new qualifying photovoltaic energy
manufacturing facilities.
1.
2.
Taxpayer must be certified by the MI Economic
Development Authority.
Taxpayer may assign all or a portion of the tax credit
to Taxpayer transferee. A credit assignment is
irrevocable and must be made in the tax year in
which a certificate is issued.
C. QUALIFYING ACTIVITY. Taxpayer must construct and
operate a new facility for development and manufacturing of
photovoltaic energy, photovoltaic systems, or other
photovoltaic technology. Photovoltaic energy is solar energy.
Photovoltaic systems are solar energy devices composed of 1
or more photovoltaic cells or photovoltaic modules, and
inverter or other power conditioning unit or photovoltaic
technology designed to deliver power of a selected current and
voltage, wires, and other electrical connectors in order to
generate electricity, heat or cool a residential structure,
provide hot water for use in a residential structure, or provide
solar process heat. Photovoltaic technology is solar power
technology that uses photovoltaic cells and modules to convert
light from the sun directly into electricity. Photovoltaic
The tax credit is repealed.
G. MISCELLANEOUS. The tax credit may be recaptured if
Taxpayer fails to meet the requirements of the tax credit.
26.06
Michigan state business tax credit for biofuel service
station conversion
A. GENERAL DESCRIPTION. Michigan provides a business
tax credit in the amount of 30% of the eligible costs of an
installed or converted biofuel delivery system. Michigan
Public Act 335 of 2008; DELEG's Bureau of Energy Systems
Announces Availability of Tax Credits to Convert and/or
Install Biofuel Infrastructure, 03/18/2009.
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer corporate owners of biofuel service stations.
1.
Taxpayer must be certified by the MI Department of
Energy, Labor & Economic Growth.
C. QUALIFYING ACTIVITY. Taxpayer must install or convert
to a biofuel delivery system to the public. Biofuels include
ethanol (E85) and/or biodiesel (B5 or higher).
D. INCENTIVE AMOUNTS. The tax credit amount is 30% of
the costs of an installed or converted biofuel delivery system.
1.
The costs of an installed or converted biofuel
delivery system does not include any federal and
state grants and incentives (but not tax credits)
received by Taxpayer.
E. INCENTIVE LIMITS. The maximum tax credit amount is
$20,000 per taxpayer.
26.08
F. INCENTIVE TIMEFRAME. The tax credit expires December
31, 2012.
G. MISCELLANEOUS.
26.07
Michigan state property tax exemption for biomass
gasification and methane digester property
A. GENERAL DESCRIPTION. Michigan provides a property
tax exemption in the amount of 100% the tax on biomass
gasification and methane digester property. Mich. Comp.
Laws §211.9(j).
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer owners of energy production related farm facility
property.
1.
2.
Taxpayer must be certified by the MI Agriculture
Environmental Assurance Program.
Taxpayer must allow access for 2 universities to
collect information regarding the effectiveness of the
methane digester and the methane digester electric
generating system in generating electricity and
processing animal waste and production area waste.
C. QUALIFYING ACTIVITY. Taxpayer must own energy
production related farm facility property. Energy production
related farm facility property include certain methane
digesters, biomass gasification equipment, equipment used to
harvest crop residues or dedicated crops used for energy
production, equipment used to generate electricity from
methane digester systems and equipment used to generate heat
or electricity from biomass gasifiers.
1.
2.
Energy production related farm facility property
must be certified by the MI Department of
Agriculture.
Biomass gasification system is apparatus and
equipment that thermally decomposes agricultural,
food, or animal waste at high temperatures and in an
oxygen-free or a controlled oxygen-restricted
environment into a gaseous fuel and the equipment
used to generate electricity or heat from the gaseous
fuel or store the gaseous fuel for future generation of
electricity or heat.
D. INCENTIVE AMOUNTS. The tax exemption amount is
100% of the property tax due.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME.
Michigan state income tax credit for large scale
battery manufacturing facilities
A. GENERAL DESCRIPTION. Michigan provides an income
tax credit in the amount of 25% of the capital investments in a
new facility for development and manufacturing of large scale
batteries. Mich. Comp. Laws Ann. §208.1434; S.B. 1343
(2010). [Repealed by ACT 39 OF 2011]
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer owners of new qualifying large scale batteries
manufacturing facilities.
1.
2.
3.
Taxpayer must be certified by the MI Economic
Development Authority.
Taxpayer may assign all or a portion of the tax credit
to Taxpayer transferee. A tax credit assignment is
irrevocable and must be made in the tax year in
which a certificate is issued.
Taxpayer must obtain conventional financing,
recovery zone facility bonds, or federal loan
guarantees.
C. QUALIFYING ACTIVITY. Taxpayer must construct and
operate a qualifying large scale batteries manufacturing
facility. A qualifying large scale batteries manufacturing
facility is a new facility for development and manufacturing of
large scale batteries and manufacture integrated power
management, smart control, and storage systems from 500
kilowatts to 100 megawatts.
1.
2.
Taxpayer must enter into an agreement to create at
least 500 qualifying new jobs and to make at least
$200 million in a qualifying capital investment not
later than December 31, 2012.
There is also a tax credit for vehicle engineering for
advanced automotive battery technologies to support
battery integration, prototyping, and launch
expenses incurred that expires December 31, 2013.
Advanced automotive battery technology is a
rechargeable lithium battery that supports vehicle
propulsion or other advanced technologies as may
be further defined by the Michigan economic growth
authority. Taxpayer must manufacture a cumulative
total of at least 1,000 motor vehicles that would
qualify for the tax credit under IRC §30D.
D. INCENTIVE AMOUNTS. The tax credit amount is $500 per
4 KWH of battery capacity plus $125 per additional KWH of
battery capacity.
1.
2.
G. MISCELLANEOUS.
3.
For 2012 and 2013, the tax credit amount is $375
per 4 KWH of battery capacity plus $93.75 per
additional KWH of battery capacity.
For 2014, the tax credit amount equals $375 per 4
KWH of batter capacity plus $93.75 per additional
KWH of battery capacity.
Starting 2012, a tax credit in the amount of 75% of
an applicable percentage of qualifying engineering
expenses is allowed. The applicable percentage
range from 20%-100% for tax years where taxpayer
manufactured a cumulative total of at least 1,000
motor vehicles to more than 5,000 motor vehicles.
F. INCENTIVE TIMEFRAME.
December 31, 2011.
The tax exemption expires
G. MISCELLANEOUS.
E. INCENTIVE LIMITS. For 2011, the maximum tax credit
amount is $2,000 per battery pack. For 2011, the statewide
maximum annual tax credit amount is $40 million. For 2012
and 2013, the maximum tax credit amount is $1,500 per
battery pack. For 2012 and 2013, the statewide maximum
annual tax credit amount is $43 million. For 2014, the
maximum tax credit amount is $1,500 per battery pack. For
2014, the statewide maximum annual tax credit amount is $9
million.
1.
The maximum annual tax credit amount for
qualifying engineering expenses is $15 million. The
statewide maximum cumulative tax credit amount is
$135 million.
F. INCENTIVE TIMEFRAME. The tax credit is repealed.
26.10
Michigan state personal income tax credit for
alternative electric supplied utilities
A. GENERAL DESCRIPTION. Michigan provides a personal
income tax credit in the amount of 20-25% of the amount
authorized and paid for electric utility surcharge. Mich.
Comp. Laws §206.253(2); 2 New Energy Credits beginning in
2009, 06/02/2009.
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer individuals paying an alternative electric utility
surcharge.
1.
G. MISCELLANEOUS.
26.09
Michigan state personal income tax credit for energy
efficient home improvements
A. GENERAL DESCRIPTION. Michigan provides a personal
income tax credit in the amount of 10% the cost of energy
efficient home improvements. Mich. Comp. Laws §206.253.
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer individuals installing energy efficient home
improvements.
1.
Taxpayer must have an annual income of $37,500 or
less and married couples filing jointly must have an
annual income of $75,000 or less.
C. QUALIFYING ACTIVITY. Taxpayer must purchase and
install qualifying energy efficient home improvements.
Qualifying improvements include insulation, water heaters,
furnaces, windows, refrigerators, clothes washers and
dishwashers.
1.
2.
Qualifying improvement equipment must meet the
EPA Energy Star efficiency criteria.
Qualifying improvements must be intended for
residential or non-commercial use.
D. INCENTIVE AMOUNTS. The tax credit amount is 10% of
the installed cost.
E. INCENTIVE LIMITS. The maximum credit is $75 for single
filers and $150 for joint filers. The tax credit is refundable.
1.
Taxpayer may not make more than one claim under
each equipment category in the same year.
Taxpayers must have an annual income of $65,000
or less and married couples filing jointly must have
an annual income of $130,000 or less.
C. QUALIFYING ACTIVITY. Taxpayer must pay an alternative
electric utility surcharge.
D. INCENTIVE AMOUNTS. The tax credit amount is 25% of
the amount authorized for the Taxpayer's electric utility and
paid during the tax year. The amounts authorized is $3.00 per
month per residential customer meter.
1.
The tax credit percentage is 20% for tax years that
begin before January 1, 2012.
E. INCENTIVE LIMITS. For 2009, the maximum tax credit
amount is $9 per meter. For 2010 and 2011, the maximum tax
credit amount is $7.20 per meter.
F. INCENTIVE TIMEFRAME. The tax credit expires December
31, 2011.
G. MISCELLANEOUS.
Mississippi State Tax Incentives for Renewable
Energy and Green Building
28.
28.01
Mississippi state business income tax credit for
alternative energy job creation
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer manufacturers of solar panels.
C. QUALIFYING ACTIVITY. Taxpayer must manufacture solar
panels.
A. GENERAL DESCRIPTION. Mississippi provides a business
income tax credit over 20 years in the amount of $1,000
annually for each net new full-time employee job in
manufacturing or production facilities of alternative energy
through an alternative fuels project. Miss. Code Ann. §27-722.29.
1.
2.
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer businesses employing new full-time employees in
manufacturing or production facilities of alternative energy.
C. QUALIFYING ACTIVITY. Taxpayer must employ new fulltime employees in manufacturing or production facilities of
alternative energy.
1. Qualifying facility must create 25 or more new fulltime employee jobs.
D. INCENTIVE AMOUNTS. The tax credit amount is $1,000
per year for each net new full-time employee job.
Taxpayer must have received an investment of at
least $132 million by December 31, 2015, from
sources other than Mississippi state or local
governments.
Taxpayer must create at least 500 new full-time jobs
within 5 years after the start of commercial
production. Taxpayer must maintain those jobs for
at least 10 years with an average annual
compensation of at least $34,000 per year, excluding
any benefits not subject to Mississippi income tax.
D. INCENTIVE AMOUNTS. The tax exemption is 100% of the
tax due.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME.
G. MISCELLANEOUS.
1.
In the first year, the number of new full-time jobs is
determined by using the monthly average number of
full-time employees subject to Mississippi income
tax withholding.
For subsequent years, the
determination is made by comparing the monthly
average number of full-time employees subject to
Mississippi income tax withholding with the
corresponding period of the prior taxable year.
E. INCENTIVE LIMITS. The maximum tax credit allowed to
be claimed is 100% of the state income tax liability that is
generated by the qualifying facility.
F. INCENTIVE TIMEFRAME. The tax credit is taken over 20
years. Taxpayer may choose the beginning date for the period
not more than 5 years from the date manufacturing or
production of alternative energy begins. Unused tax credit
may be carried forward 5 years. Unused tax credit on
qualifying facilities in disaster areas may be carried forward 7
years.
G. MISCELLANEOUS. Taxpayer may not use the tax credit
offered in the Economic Development Reform Act, Miss.
Code Ann. §57-73-21.
28.02
Mississippi state sales and use tax exemption for solar
panel manufacturers
A. GENERAL DESCRIPTION. Mississippi provides a sales and
use tax exemption in the amount of 100% of the tax on solar
panel manufacturers. S.B. 3189 (2010).
28.03
Mississippi state franchise tax exemption for solar
panel manufacturers
A. GENERAL DESCRIPTION. Mississippi provides a franchise
tax exemption in the amount of 100% of the tax on solar panel
manufacturers. S.B. 3189 (2010).
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer manufacturers of solar panels.
C. QUALIFYING ACTIVITY. Taxpayer must manufacture solar
panels.
1.
2.
Taxpayer must have received an investment of at
least $132 million by December 31, 2015, from
sources other than Mississippi state or local
governments.
Taxpayer must create at least 500 new full-time jobs
within 5 years after the start of commercial
production. Taxpayer must maintain those jobs for
at least 10 years with an average annual
compensation of at least $34,000 per year, excluding
any benefits not subject to Mississippi income tax.
D. INCENTIVE AMOUNTS. The tax exemption is 100% of the
tax due.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME.
G. MISCELLANEOUS.
A. GENERAL DESCRIPTION. Mississippi provides an income
tax exemption in the amount of 100% of the tax on clean
energy manufacturing facilities. H.B. 1701 (2010).
Mississippi state income tax exemption for clean
energy manufacturing facilities
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer owners of clean energy manufacturing facilities.
A. GENERAL DESCRIPTION. Mississippi provides an income
tax exemption in the amount of 100% of the tax on clean
energy manufacturing facilities. H.B. 1071 (2010).
C. QUALIFYING ACTIVITY. Taxpayer must own clean energy
manufacturing facilities. Clean energy is energy that is
generated from either a renewable energy source, such as
wind, water, biomass or solar power; or an alternative energy
source, such as nuclear power.
28.04
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer owners of clean energy manufacturing facilities.
1.
C. QUALIFYING ACTIVITY. Taxpayer must own clean energy
manufacturing facilities. Clean energy is energy that is
generated from either a renewable energy source, such as
wind, water, biomass or solar power; or an alternative energy
source, such as nuclear power.
1.
2.
3.
Taxpayer must make a minimum capital investment
of $50 million in a facility that manufactures or
assembles systems or components used in the
generation of clean energy.
Taxpayer must create at least 250 new, full-time
jobs.
Biomass includes any of the following: forestrelated mill residues, pulping by-product and other
by-products of wood processing, thinnings, slash,
limbs, bark, brush and other cellulosic plant material
or non-merchantable forest-related products; solid
wood waste materials, including dunnage,
manufacturing and construction wood wastes,
demolition and storm debris and landscape or rightof-way trimmings; agriculture wastes, including
orchard tree crops, vineyard, grain, legumes, sugar
and other crop by-products or residues and livestock
waste nutrients; all plant and grass material that is
grown exclusively as a fuel for the production of
electricity; refuse derived fuels consisting of organic
components and fibers of waste water treatment
solids; or whole trees.
D. INCENTIVE AMOUNTS. The tax exemption is 100% of the
tax due related to the facility.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME. The tax exemption period is 10
years.
2.
D. INCENTIVE AMOUNTS. The tax exemption is 100% of the
tax due related to the facility.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME. The tax exemption period is 10
years.
G. MISCELLANEOUS.
28.06
Mississippi state sales and use tax exemption for clean
energy manufacturing facilities
A. GENERAL DESCRIPTION. Mississippi provides a sales and
use tax exemption in the amount of 100% of the sales and use
tax on the construction or expansion of clean energy
manufacturing facilities. H.B. 1701 (2010).
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer owners of clean energy manufacturing facilities.
C. QUALIFYING ACTIVITY. Taxpayer must own clean energy
manufacturing facilities. Clean energy is energy that is
generated from either a renewable energy source, such as
wind, water, biomass or solar power; or an alternative energy
source, such as nuclear power.
1.
G. MISCELLANEOUS.
2.
28.05
Mississippi state franchise tax exemption for clean
energy manufacturing facilities
Taxpayer must make a minimum capital investment
of $50 million in a facility that manufactures or
assembles systems or components used in the
generation of clean energy.
Taxpayer must create at least 250 new, full-time
jobs.
Taxpayer must make a minimum capital investment
of $50 million in a facility that manufactures or
assembles systems or components used in the
generation of clean energy.
Taxpayer must create at least 250 new, full-time
jobs.
D. INCENTIVE AMOUNTS. The tax exemption is 100% of the
tax due related to the purchase or lease of component building
materials, equipment, and machinery
construction or expansion of the facility.
for
the
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME. The tax exemption period is 10
years.
G. MISCELLANEOUS.
28.07
components and fibers of waste water treatment
solids; or whole trees.
initial
Mississippi state corporate income tax credit for
biomass fuel production facilities
A. GENERAL DESCRIPTION. Mississippi provides a corporate
income tax credit in the amount of 5% of investments made in
biomass fuel production facilities. Miss. Code Ann. §27-722.35.
D. INCENTIVE AMOUNTS. The tax credit amount is 5% of the
amount invested.
E. INCENTIVE LIMITS. The maximum tax credit allowed to
be claimed is 50% of the state income tax liability of
Taxpayer.
F. INCENTIVE TIMEFRAME.
Taxpayer may choose the
beginning date for the period not more than 2 years from the
facility becomes fully operational. Unused tax credit may be
carried forward 5 years.
G. MISCELLANEOUS.
28.08
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer investing in biomass fuel production facilities.
C. QUALIFYING ACTIVITY. Taxpayer must invest in biomass
fuel production facilities. A biomass fuel production facility is
a facility that consists of all components necessary for the
production of electric energy from the direct firing or co-firing
of biomass or waste heat recovery, and other energy sources;
produces both electric energy and useful thermal energy, such
as heat or steam, through the sequential use of energy
(cogeneration); and consists of all components necessary for
the production of synfuel.
1.
2.
3.
4.
Taxpayer must make a minimum capital investment
of $50 million in a facility.
Taxpayer must create at least 20 new, full-time jobs.
An eligible facility includes all burners and boilers,
any handling and delivery equipment that supplies
fuel directly to, and is integrated with, such burners
and boilers, steam headers, turbines, generators,
property used for the collection, processing, or
storage of biomass or synfuel, transformers,
pipelines and all other property used in the
transmission of electricity or synfuel and related
depreciable property.
Biomass includes any of the following: forestrelated mill residues, pulping by-product and other
by-products of wood processing, thinnings, slash,
limbs, bark, brush, and other cellulosic plant
material or nonmerchantable forest-related products;
solid wood waste materials, including dunnage,
manufacturing, and construction wood wastes,
demolition and storm debris and landscape or rightof-way trimmings; agriculture wastes, including
orchard tree crops, vineyard, grain, legumes, sugar,
and other crop by-products or residues and livestock
waste nutrients; all plant and grass material that is
grown exclusively as a fuel for the production of
electricity; refuse derived fuels consisting of organic
Mississippi state sales and use tax exemption for
biomass fuel production facilities
A. GENERAL DESCRIPTION. Mississippi provides a sales and
use tax exemption in the amount of 100% of tax due on the
materials used in the construction, improvement, or
enlargement of a biomass fuel production facility. H.B. 8b
(2010).
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer purchasing materials used in the construction,
improvement, or enlargement of a biomass fuel production
facility.
C. QUALIFYING ACTIVITY.
Taxpayer must purchase
materials used in the construction, improvement, or
enlargement of a biomass fuel production facility. A biomass
fuel production facility is a facility that produces of renewable
crude oil and consists of all components necessary for the
production of electric energy from the direct firing or co-firing
of biomass or waste heat recovery, and other energy sources;
produces both electric energy and useful thermal energy, such
as heat or steam, through the sequential use of energy
(cogeneration); and consists of all components necessary for
the production of synfuel.
1.
2.
3.
4.
Taxpayer must make a minimum capital investment
of $50 million in a facility.
Taxpayer must create at least 20 new, full-time jobs.
An eligible facility includes all burners and boilers,
any handling and delivery equipment that supplies
fuel directly to, and is integrated with, such burners
and boilers, steam headers, turbines, generators,
property used for the collection, processing, or
storage of biomass or synfuel, transformers,
pipelines and all other property used in the
transmission of electricity or synfuel and related
depreciable property.
Biomass includes any of the following: forestrelated mill residues, pulping by-product and other
by-products of wood processing, thinnings, slash,
limbs, bark, brush, and other cellulosic plant
material or nonmerchantable forest-related products;
solid wood waste materials, including dunnage,
manufacturing, and construction wood wastes,
demolition and storm debris and landscape or rightof-way trimmings; agriculture wastes, including
orchard tree crops, vineyard, grain, legumes, sugar,
and other crop by-products or residues and livestock
waste nutrients; all plant and grass material that is
grown exclusively as a fuel for the production of
electricity; refuse derived fuels consisting of organic
components and fibers of waste water treatment
solids; or whole trees.
D. INCENTIVE AMOUNTS. The tax exemption amount is
100% of the sales and use tax due.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME.
G. MISCELLANEOUS.
33.
New Hampshire State Tax Incentives for Renewable
Energy and Green Building
33.01
New Hampshire state property tax payment in lieu of
taxes for renewable generation facilities
A. GENERAL DESCRIPTION. New Hampshire provides a
property tax payment in lieu of taxes option for municipalities
for renewable generation facilities. N.H. Rev. Stat. Ann. ch.
72:73 et seq.; N.H. Rev. Stat. Ann. ch. 362-F:4
B. ELIGIBLE TAXPAYERS. The tax payment in lieu of taxes is
available to Taxpayer owners of renewable generation
facilities.
C. QUALIFYING ACTIVITY. Taxpayer must own a renewable
generation facility.
Renewable generation facilities are
facilities which produces electric energy for resale solely by
the use, as a primary energy source, of renewable energy
including the land, all rights, easements, and other interests
thereto, and all dams, buildings, structures, and other
improvements situated thereon which are necessary or
incidental to the production of power at the facility.
1.
Renewable energy includes (a) Wind energy; (b)
Geothermal energy; (c) Hydrogen derived from
biomass fuels or methane gas; (d) Ocean thermal,
wave, current, or tidal energy; (e) Methane gas; (f)
Eligible biomass technologies; (g) The equivalent
displacement of electricity, as determined by the
commission, by end-use customers, from solar hot
water heating systems used instead of electric hot
water heating.
D. INCENTIVE AMOUNTS. The tax payment in lieu of taxes
amount varies by local jurisdiction.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME. The tax payment in lieu of taxes
period is 5 years.
G. MISCELLANEOUS.
33.02
New Hampshire state property tax exemption for
residential renewable-energy systems
A. GENERAL DESCRIPTION. New Hampshire provides a
property tax exemption in the amount of 100% of the tax on
residential renewable-energy systems. N.H. Rev. Stat. Ann.
ch. 72:61 et seq.
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer owners of residential renewable-energy system
property.
C. QUALIFYING ACTIVITY. Taxpayer must own residential
renewable-energy system property. Residential renewableenergy system property includes solar-energy systems
(photovoltaic systems, solar space-heating systems, solar
water-heating systems, passive solar-energy systems); windenergy systems, and wood-fired central heating systems.
Solar energy systems are systems which utilizes solar energy
to heat or cool the interior of a building or to heat water for
use in a building and which includes one or more collectors
and a storage container or system which provides electricity
for a building by the use of photovoltaic panels. Windpowered energy systems are wind-powered devices which
supplement or replace electrical power supplied to households
or businesses at the immediate site. Wood heating energy
systems are wood burning appliances designed to operate as a
central heating system to heat the interior of a building.
1.
2.
3.
Qualifying wood heating energy systems may burn
wood solely or burn wood in combination with
another fuel.
Qualifying wood heating energy systems include a
central appliance to distribute heat by a series of
pipes, ducts or similar distribution system
throughout a single building or group of buildings.
Qualifying wood heating energy systems does not
include a fireplace, meaning a hearth, fire chamber
or similarly prepared place with a chimney intended
to be usable in an open configuration whether or not
it may also be closed and operated closed; or a wood
stove meaning a wood burning appliance designed
for space heating purposes which does not operate as
a central heating system or as a sole source of heat.
D. INCENTIVE AMOUNTS. The tax exemption amount is
100% of the property tax due.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME.
G. MISCELLANEOUS.
34.
New Jersey State Tax Incentives for Renewable
Energy and Green Building
34.01
New Jersey state income tax credit for alternative
energy technology company
A. GENERAL DESCRIPTION. New Jersey provides an income
tax credit over 3 years in the amount of 10% per year of
qualifying investment for environmental technology
businesses, including businesses developing of alternative
energy sources. N.J. Rev. Stat. §54:10A.
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer investors making a qualifying investment in an
environmental technology business.
C. QUALIFYING ACTIVITY. Taxpayer must make qualifying
investments in small New Jersey-based environmental
technology business. Environmental technology business is a
high-technology business in assessment and prevention of
threats or damage to human health or the environment,
environmental cleanup or the development of alternative
energy sources.
1.
2.
A qualifying investment is the non-refundable atrisk cash investment made by an unrelated entity and
transferred to a small New Jersey-based hightechnology business in exchange for stock, interests
in partnerships or joint ventures, licenses, rights to
use technology, marketing rights, warrants, options
or any similar rights, including, but not limited to,
options or rights to acquire any of the above items.
A small New Jersey-based high-technology business
is a corporation doing business, employing or
owning capital or property, or maintaining an office
in New Jersey that has qualifying research expenses
paid or incurred for research conducted in the state,
or that conducts pilot scale manufacturing in the
state, and that has fewer than 225 employees, at least
75% of whom are New Jersey-based employees
filling positions or jobs within the state.
before claiming the tax credit for investments in small New
Jersey-based high-technology businesses
34.02
New Jersey state property tax exemption for
renewable energy systems
A. GENERAL DESCRIPTION. New Jersey provides a property
tax exemption in the amount of 100% of the tax on renewable
energy systems. N.J. Rev. Stat. §54:4-3.113; N.J. Rev. Stat.
§4:1C-11 et seq.; N.J. Rev. Stat. §54:4-23.1 et seq.
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer owners of renewable energy system property.
1.
2.
C. QUALIFYING ACTIVITY. Taxpayer must own renewable
energy systems used to meet on-site electricity, heating,
cooling, or general energy need. Renewable energy systems
include solar PV, wind, fuel cells, sustainable biomass,
geothermal electric, landfill gas, hydroelectric, resource
recovery, wave, and tidal systems that produce electricity,
solar thermal energy, and geothermal energy.
1.
D. INCENTIVE AMOUNTS. The tax credit amount is 10% of
qualifying investments in each tax year.
2.
E. INCENTIVE LIMITS. The maximum annual tax credit is
$500,000 for each qualifying investment. The maximum
annual tax credit that may be claimed is 50% of the tax
liability otherwise due.
F. INCENTIVE TIMEFRAME. The tax credit period is 3 years.
Unused tax credit may be carried forward 15 years. Unused
tax credit may not be carried over by target corporations in a
corporate acquisition.
G. MISCELLANEOUS. Qualifying investments may not be
used for the research and development tax credit. A
corporation must take all other credits to which it is entitled
Taxpayer must be certified by their local assessor.
Taxpayer owners of renewable energy system
property on agriculture and horticulture sites qualify
if: (i) the property continues to be used as an
operating farm; (ii) the property was valued,
assessed, and taxed as agricultural or horticultural
for the year immediately preceding installation of
the renewable energy equipment; (iii) the energy
generated is used primarily by the agricultural
operation on the property; (iv) the Taxpayer owner
has filed a conservation plan with the soil
conservation district; (v) the area devoted to the
renewable energy facilities is equal to no more than
20% of the area on the property devoted to
agricultural purposes; and (vi) the renewable energy
facilities occupy no more than 5 acres of the
property.
Qualifying renewable energy systems must be
installed on residential, commercial, industrial, or
mixed use buildings as accessory uses.
Qualifying renewable energy systems must be
certified by the NJ Board of Public Utilities and the
Commissioner of Community Affairs.
D. INCENTIVE AMOUNTS. The tax exemption amount is
100% of the property tax due.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME.
G. MISCELLANEOUS. The tax exemption may be recaptured
if the structure or equipment has ceased to be used for the
primary purpose of providing renewable energy to provide all
or a portion of the electrical, heating, cooling, or general
energy needs of the structure and is being used for a different
primary purpose or if the equipment, design and construction
is no longer suitable and reasonably adequate for the purpose
of using renewable energy to provide all or a portion of the
electrical, heating, cooling, or general energy needs of the
structure.
D. INCENTIVE AMOUNTS.
100% of the sales tax due.
The tax exemption amount is
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME.
34.03
New Jersey state sales tax exemption for solar energy
equipment
A. GENERAL DESCRIPTION. New Jersey provides a sales tax
exemption in the amount of 100% of the tax on solar energy
equipment. N.J. Stat. §54:32B-8.33.
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer purchasers of solar energy equipment.
C. QUALIFYING ACTIVITY. Taxpayer must purchase solar
energy equipment. Solar energy equipment is solar energy
devices or systems designed to provide heating or cooling, or
electrical or mechanical power by collecting and transferring
solar-generated energy and including mechanical or chemical
devices for storing solar generated energy.
1.
Solar energy equipment includes equipment for
passive solar design.
D. INCENTIVE AMOUNTS.
100% of the sales tax due.
The tax exemption amount is
E. INCENTIVE LIMITS.
G. MISCELLANEOUS.
34.05
New Jersey state income tax credit for wind energy
facilities
A. GENERAL DESCRIPTION. New Jersey provides an income
tax credit over 10 years in the amount of 100% of its capital
investment in a qualified offshore wind project. S.B. 2036
(2010).
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer investors making a qualifying investment in an
environmental technology business.
C. QUALIFYING ACTIVITY. Taxpayer must own qualified
offshore wind project. Qualified offshore wind project is a
wind turbine electricity generation facility in the Atlantic
Ocean and connected to the electric transmission system in
this State, and includes the associated transmission-related
interconnection facilities and equipment.
1.
F. INCENTIVE TIMEFRAME.
G. MISCELLANEOUS.
2.
3.
34.04
New Jersey state sales tax exemption for cogeneration
facility equipment
A. GENERAL DESCRIPTION. New Jersey provides a sales tax
exemption in the amount of 100% of the tax on cogeneration
facility equipment. N.J. Stat. §54:32B et seq; A.B. 3339
(2010).
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer purchasers of cogeneration facility equipment.
C. QUALIFYING ACTIVITY.
Taxpayer must purchase
cogeneration facility equipment. Cogeneration facility is a
facility the primary purpose of which is the sequential
production of electricity and steam or other forms of useful
energy which are used for industrial or commercial heating or
cooling purposes and which is designated by the Federal
Energy Regulatory Commission, or its successor, as a
qualifying facility per the Public Utility Regulatory Policies
Act of 1978.
4.
Qualified offshore wind project must have a capital
investments of at least $50m. Tenants of the
qualified offshore wind project must have a capital
investments of at least $17.5m
Qualified offshore wind project must employ at least
300 new, full-time employees.
Qualified wind energy facility is any building,
complex of buildings, or structural components of
buildings, including water access infrastructure, and
all machinery and equipment used in the
manufacturing,
assembly,
development
or
administration of component parts that support the
development and operation of a qualified offshore
wind project, or other wind energy project as
determined by the authority, and that are located in a
wind energy zone.
Wind energy zone is the South Jersey Port District
established pursuant to “The South Jersey Port
Corporation Act,” P.L.1968, c.60 (C.12:11A-1 et
seq.).
D. INCENTIVE AMOUNTS. The tax credit amount is 100% of
the capital investment.
E. INCENTIVE LIMITS. The maximum statewide tax credit
amount is $100m.
F. INCENTIVE TIMEFRAME. The tax credit is taken over a 10year period. The tax credit expires August 19, 2015.
G. MISCELLANEOUS.
36.
New York State Tax Incentives for Renewable Energy
and Green Building
36.01
New York state income tax credits for clean energy
enterprises
D. INCENTIVE AMOUNTS. The tax credit amount varies based
on the statutory formula which is the product of the benefit
period factor, the employment increase factor, the zone
allocation factor and the tax factor.
E. INCENTIVE LIMITS.
A. GENERAL DESCRIPTION. New York provides income tax
credits in various amounts for businesses in an Empire Zone
primarily engaged in research, development or manufacturing
of renewable energy or energy efficiency technologies or
products. (EXPIRED).
F. INCENTIVE TIMEFRAME. The tax benefit period is 10
years. Qualifying clean energy enterprises must be certified
by June 30, 2010.
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer Empire Zone businesses primarily engaged in
research, development or manufacturing of renewable energy
or energy efficiency technologies or products.
G. MISCELLANEOUS. For tax years beginning on or after
January 1, 2010, and before January 1, 2013, if the total
amount of certain credits that Taxpayer may use to reduce tax
or have refunded is greater than $2 million, the excess over $2
million must be deferred to, and used or refunded in, tax years
beginning on or after January 1, 2013.
1.
2.
Empire Zones are geographically defined areas
within New York State. Taxpayer located within the
zone are eligible for Empire Zone program tax
benefits.
Taxpayer must meeting an annual
employment test and a cost-benefit ratio test.
Taxpayer may be an initial clean coal electric
generating facility capable of capturing carbon
dioxide for sequestration or capable of being
retrofitted to capture carbon dioxide for
sequestration.
C. QUALIFYING ACTIVITY. Taxpayer must be primarily
engaged in research, development or manufacturing of
renewable energy or energy efficiency technologies or
products. Taxpayer must have 80% or more of its property in
New York utilized for research, development or
manufacturing of renewable energy or energy efficiency
technologies or products. Qualifying purchases must be made
in a municipality that has elected to provide the tax credit.
1.
2.
3.
Energy efficiency improvement is any renovation or
retrofitting of a building to
reduce
energy
consumption, such as window and door
replacement, lighting, caulking, weatherstripping, air
sealing, insulation, and heating and cooling
system upgrades, and similar improvements,
determined to be cost-effective pursuant to
criteria established by the authority.
Energy efficiency improvement does not include
lighting measures or household appliances that are
not permanently fixed to real property.
Renewable energy system is an energy generating
system for the generation of electric or thermal
energy, to be used primarily at such property, by
means of solar thermal, solar photovoltaic,
wind, geothermal, anaerobic digester gas-toelectricity systems, fuel cell technologies, or other
renewable energy technology approved by the
authority not including the combustion or pyrolysis
of solid waste.
36.02
New York state property tax credit for clean energy
enterprises
A. GENERAL DESCRIPTION. New York provides a property
tax credit in various amounts for businesses in an Empire
Zone primarily engaged in research, development or
manufacturing of renewable energy or energy efficiency
technologies or products. (EXPIRED).
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer Empire Zone businesses primarily engaged in
research, development or manufacturing of renewable energy
or energy efficiency technologies or products.
1.
2.
Empire Zones are geographically defined areas
within New York State. Taxpayer located within the
zone are eligible for Empire Zone program tax
benefits.
Taxpayer must meeting an annual
employment test and a cost-benefit ratio test.
Taxpayer may be an initial clean coal electric
generating facility capable of capturing carbon
dioxide for sequestration or capable of being
retrofitted to capture carbon dioxide for
sequestration.
C. QUALIFYING ACTIVITY. Taxpayer must be primarily
engaged in research, development or manufacturing of
renewable energy or energy efficiency technologies or
products. Taxpayer must have 80% or more of its property in
New York utilized for research, development or
manufacturing of renewable energy or energy efficiency
technologies or products. Qualifying purchases must be made
in a municipality that has elected to provide the tax credit.
1.
Energy efficiency improvement is any renovation or
retrofitting of a building to
reduce
energy
consumption, such as window and door
replacement, lighting, caulking, weatherstripping, air
sealing, insulation, and heating and cooling
system upgrades, and similar improvements,
2.
3.
determined to be cost-effective pursuant to
criteria established by the authority.
Energy efficiency improvement does not include
lighting measures or household appliances that are
not permanently fixed to real property.
Renewable energy system is an energy generating
system for the generation of electric or thermal
energy, to be used primarily at such property, by
means of solar thermal, solar photovoltaic,
wind, geothermal, anaerobic digester gas-toelectricity systems, fuel cell technologies, or other
renewable energy technology approved by the
authority not including the combustion or pyrolysis
of solid waste.
1.
C. QUALIFYING ACTIVITY. Taxpayer must own eligible
buildings in New York City with photovoltaic systems
installed.
1.
1.
E. INCENTIVE LIMITS. A business enterprise certified by
ESD on or after April 1, 2009 is eligible for a refund or credit
of tax paid on qualifying purchases during the first month after
certification by ESD, based on the date on the Certificate of
Eligibility and on the EZRC issued to it by ESD. The business
must pass the employment test for the tax year in which a
refund or credit is claimed. However, a business certified by
ESD on or after April 1, 2009, is eligible for a refund or credit
of any taxes paid only if the locality in which the purchase is
made has elected to provide the N.Y. Tax Law §1119(d)
refund or credit. If the locality has not made this election, no
refund or credit of any taxes (State, MCTD and local) paid is
available.
3.
G. MISCELLANEOUS. For tax years beginning on or after
January 1, 2010, and before January 1, 2013, if the total
amount of certain credits that Taxpayer may use to reduce tax
or have refunded is greater than $2 million, the excess over $2
million must be deferred to, and used or refunded in, tax years
beginning on or after January 1, 2013.
Eligible buildings include all real property except
utility real property.
D. INCENTIVE AMOUNTS. The tax credit amount over 4 years
is 35% of costs for systems installed before December 31,
2010, and 20% of costs for systems installed from January 1,
2011 to December 31, 2012.
D. INCENTIVE AMOUNTS. The tax credit amount varies based
on the statutory formula which is the 75% of the product of
the benefit period factor, the employment increase factor and
the tax factor.
F. INCENTIVE TIMEFRAME. The tax credit period is 10 years.
Qualifying clean energy enterprises must be certified by June
30, 2010.
Taxpayer must be certified by the NYC Department
of Finance and the NYC Department of Buildings.
2.
4.
Qualifying costs include reasonable expenditures for
materials and labor associated with planning,
designing, and installing the system.
Qualifying costs do not include interest or finance
charges.
Qualifying costs include costs funded from federal,
state or local tax credits, tax abatements, tax
exemptions or tax rebates.
Qualifying costs do not include costs funded from
federal, state, or local grants.
E. INCENTIVE LIMITS. The maximum tax abatement during a
year is $62,500 or the amount of real property taxes owed
during the year. Unused balances may not be carried forward
to subsequent years.
F. INCENTIVE TIMEFRAME. The tax abatement expires
December 31, 2012. Taxpayer must apply for the tax
abatement by March 15 in order to be eligible for the tax
credit during the year the application is submitted.
G. MISCELLANEOUS. Taxpayer may claim the property tax
exemption on the value added by solar, wind, and farm-based
biogas energy systems per NY CLS Real Property Tax, Article
4 § 487.
36.04
New York state property tax exemption for solar,
wind & biomass energy systems
New York state property tax abatement for
photovoltaic equipment expenditures installed in New
York City
A. GENERAL DESCRIPTION. New York provides a property
tax exemption in the amount of 100% of the tax on solar, wind
and biomass energy systems. NY CLS Real Property Tax,
Article 4 §487; A.B. 10875 (2010).
A. GENERAL DESCRIPTION. New York provides a property
tax abatement over 4 years in amounts ranging from 20-35%
of the cost of photovoltaic systems made on buildings located
in New York City. NY CLS RPTL §499-aaaa et seq.
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer owners of solar, wind and farm-waste energy
equipment systems.
36.03
1.
B. ELIGIBLE TAXPAYERS. The tax abatement is available to
Taxpayer owners of eligible buildings in New York City with
photovoltaic systems installed.
The tax exemption may be opted out of by the
municipality.
C. QUALIFYING ACTIVITY. Taxpayer must own solar, wind
or farm-waste energy equipment system. Qualify farm-waste
energy systems are systems and related equipment that
generate electric energy from biogas produced by the
anaerobic digestion of agricultural waste, such as livestock
manure, farming waste and food processing wastes.
Qualifying solar energy equipment systems include passive
solar heating systems such as mass wall and direct gain
systems.
1.
2.
3.
4.
Qualifying systems must be certified by the NY
State Energy Research and Development Authority.
Qualifying farm-waste energy systems must have a
maximum rated system capacity of 400 kilowatts
(kW).
Qualifying systems includes insulated glazing or
insulation to the extent that such materials exceed
the energy efficiency standards required by law.
Qualifying systems do not include pipes, controls,
insulation or other equipment which are part of the
normal heating, cooling, or insulation system of a
building.
manufactured in the U.S. and its territories and sold (1) for
fuel use and which has been rendered unfit for beverage use
and which is produced at a facility approved by the federal
bureau of alcohol, tobacco and firearms for the production of
ethanol for fuel, or (2) as denatured ethanol used by blenders
and refiners which has been rendered unfit for beverage use.
D. INCENTIVE AMOUNTS. The tax credit amount is $0.15 per
gallon after the production of the first 40,000 gallons per year
presented to market.
E. INCENTIVE LIMITS. The maximum annual tax credit
amount is $2.5 million. The maximum annual tax credit
allowed to be claimed is the higher of the fixed dollar
minimum tax or the tax on the minimum taxable income base.
The tax credit is refundable up to $2 million. Any amount
above $2 million is deferred until 2013 and 2014.
1.
2.
D. INCENTIVE AMOUNTS. The tax exemption amount is
100% of the property tax due.
E. INCENTIVE LIMITS. The tax exemption applies only to
general municipal and school district taxes and may not be
applied to special assessments or special ad valorem levies.
F. INCENTIVE TIMEFRAME. The tax exemption period is 15
years. The tax exemption expires December 31, 2014.
G. MISCELLANEOUS.
Taxpayer may be required by
municipality to enter into a contract for payments in lieu of
taxes, not to exceed the amount payable without the tax
exemption.
The tax credit may not be applied against the MTA
surcharge.
The maximum annual tax credit amount is
determined at the entity level in the case of
partnerships, S corporations, and limited liability
companies.
F. INCENTIVE TIMEFRAME. The maximum tax credit period
is 4 years. The tax credit expires December 31, 2012.
G. MISCELLANEOUS.
36.06
New York state franchise tax credit for alternative fuel
refueling property
New York state franchise tax credit for biofuel
production
A. GENERAL DESCRIPTION. New York provides a franchise
tax credit in the amount of 50% of the cost of alternative fuel
vehicle refueling property. N.Y. Tax Law §210(24); New
York Technical Service Bureau Memorandum TSB-M-06(3)C,
04/19/2006; A.B. 9710 (2010).
A. GENERAL DESCRIPTION. New York provides a franchise
tax credit in the amount of $0.15 per gallon of biofuel
production. N.Y. Tax Law §28; N.Y. Tax Law §187-c ; N.Y.
Tax Law §210(38); A.B. 9710 (2010).
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer corporations placing alternative fuel vehicle
refueling property in service. Taxpayer may elect to allow its
affiliate to claim the tax credit.
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer corporations producing biofuel.
C. QUALIFYING ACTIVITY. Taxpayer must place in service
of alternative fuel vehicle refueling property, as defined in
IRC §30C.
36.05
1.
Taxpayer must be certified by the NYS Energy and
Research Development Authority.
C. QUALIFYING ACTIVITY. Taxpayer must produce biofuel.
Biofuel is biodiesel and ethanol, or any other standard
approved by the NY State Energy and Research Development
Authority. Biodiesel is a fuel composed exclusively of monoalkyl esters of long chain fatty acids derived from vegetable
oils or animal fats, designated B100, which meets the
specifications of the American Society of Testing and
Materials designation D 6751-02. Ethanol is ethyl alcohol
1.
Qualifying alternative fuel vehicle refueling
property does not include refueling property relating
to a qualifying hybrid vehicle.
D. INCENTIVE AMOUNTS. The tax credit amount is 50% of
the cost of alternative fuel vehicle refueling property.
E. INCENTIVE LIMITS. Any annual tax credit amount above
$2 million is deferred until 2013 and 2014.
F. INCENTIVE TIMEFRAME. The tax credit expires December
31, 2010.
G. MISCELLANEOUS. The tax credit may be recaptured if, at
any time before the end of its recovery period, the alternative
fuel vehicle refueling property ceases to be qualifying. The
alternative fuel vehicle refueling property ceases to be
qualifying if: (1) the property no longer qualifies as property
described in IRC §30C; (2) 50% or more of the use of the
property in a tax year is other than in a trade or business in
New York; or (3) the Taxpayer sells or disposes of the
property and knows, or has reason to know, that the property
will be used in a manner as described in (1) or (2). N.Y. Tax
Law §210(24)(e).
1.
36.07
Taxpayer may not claim the clean-fuel vehicle
refueling property credit.
New York state property tax exemption for energy
conservation improvements
A. GENERAL DESCRIPTION. New York provides a property
tax exemption in the amount of 100% of the tax on qualifying
energy-conservation improvements to one, two, three or four
family homes. NY CLS Real Property Tax Law §487-a; New
York Technical Service No. TSB-M-06(4)C, 07/21/2006. NY
ORPS Exemption Administration Manual - Part 1 Residential
- Other Than Multiple Dwellings - Section 4.01 - RPTL
Section 487-a.
E. INCENTIVE LIMITS. The tax exemption includes general
municipal property taxes, school district taxes, and special ad
valorem taxes, but does not apply to special assessments.
F. INCENTIVE TIMEFRAME.
G. MISCELLANEOUS.
36.08
New York state income tax credit for green building
A. GENERAL DESCRIPTION. New York provides a franchise
or personal income tax credit over 5 years to owners and
tenants in amounts ranging from 5-100% of costs of
improvements to green buildings and tenant spaces which
meet certain green standards. NY CLS Tax, Article 1 §19; A.B.
9710 (2010).
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer corporations or individuals who are owners or
tenants of green buildings and tenant spaces. The tax credit
can be applied against corporate taxes, personal income,
insurance corporation taxes and banking corporation taxes.
1.
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer owners of qualifying energy-conservation
improvements to one, two, three or four family homes.
2.
C. QUALIFYING ACTIVITY. Taxpayer must own qualifying
energy-conservation improvements to one, two, three or four
family homes. Qualifying energy-conservation improvements
include insulation and other energy conservation measures
such as caulking and weather-stripping of all exterior doors
and windows; furnace efficiency modifications; furnace and
boiler retrofits; furnace and boiler replacements, provided that
such replacements meet minimum efficiency standards; heat
pumps that meet minimum efficiency standards; clock
thermostats; ceiling, attic, wall, foundation, air duct, heating
pipe, and floor insulation; hot water heater insulation; storm
and thermal windows and doors; solar and wind systems; load
management devices and energy use meters, together with
associated wiring.
1. Qualifying homes must qualify for financing under a
home conservation plan under Article VII-A of the
Public Service Law, or any conservation-related
state or federal tax credit or deduction.
4.
D. INCENTIVE AMOUNTS. The tax exemption amount is
100% of the property tax due.
3.
Taxpayer must be certified by NY Department of
Environmental Conservation. The certificate will
state the maximum amount of credit component
allowable for each of the 5 taxable years for which
the tax credit component is allowed, what year
taxpayer may first start claiming the tax credit and
the tax credit expiration date.
Taxpayer must be likely within a reasonable time to
place in service property that would be green.
Taxpayer must work through an architect or
engineer to obtain a credit certificate.
Taxpayer may transfer the tax credit to new owner
or lessees of a qualifying green building.
C. QUALIFYING ACTIVITY. Taxpayer must own or lease
green buildings or tenant spaces. Qualifying green buildings
meet standards that increase energy efficiency, improve indoor
air quality, and reduce the environmental impacts of large
commercial and residential buildings. Qualifying buildings
include certain hotels and office buildings having at least
20,000 square feet of interior space, residential multi-family
buildings having at least 12 units having at least 20,000 square
feet of interior space, residential multi-family buildings, at
least 2 units, part of single or phased construction, with at least
20,000 square feet of interior space, provided at least 10,000
square feet is under construction or rehabilitation in any single
phase. There are six different credit components, which are
listed below. Green spaces incorporating credit components
4-6 must meet all requirements for energy, indoor air quality,
materials, water conservation and commissioning.
1.
2.
Whole Building Credit (owner or tenant), where
base building and all tenant space are green;
Base Building Credit (owner), for non-dwelling
spaces;
3.
4.
5.
6.
Tenant Space Credit (owner or tenant), where the
base building must be green to qualify if the tenant
space is under 10,000 square feet;
Fuel Cell Credit, for systems fueled by a "qualifying
alternate energy source" serving green spaces;
Photovoltaic Module Credit for photovoltaics
systems serving green spaces; and
Green Refrigerant Credit, for new air conditioning
equipment using an EPA-approved non-ozone
depleting refrigerant serving green spaces.
D. INCENTIVE AMOUNTS. The tax credit amount is the sum
of the tax credit components specified in the initial credit
component certificate.
1.
2.
3.
4.
5.
6.
Whole Building Credit (owner or tenant) - 7% of
Allowable Costs (1.4% x 5 years). If in Economic
Development Area, then 8% of Allowable Costs
(1.6% x 5 years). Cap (aggregate): $150/sq. ft. for
base building; $75/sq. ft. for tenant space;
Base Building Credit (owner) - 5% of Allowable
Costs (1% x 5 years). If in Economic Development
Area, then 6% of Allowable Costs (1.2% x 5 years).
Cap (aggregate): $150/sq. ft.;
Tenant Space Credit (owner or tenant) - 5% of
Allowable Costs (1% x 5 years). If in Economic
Development Area, then 6% of Allowable Costs
(1.2% x 5 years). Cap (aggregate): $75/sq. ft.;
Fuel Cell Credit - 30% of capitalized cost of each
fuel cell (6% x 5 years). Cap: $1,000/kw x DC-rated
capacity;
Photovoltaic Module Credit - 100% of incremental
cost of Building integrated photovoltaic modules
(20% x 5 years). 25% of incremental cost of nonBuilding integrated photovoltaic modules (5% x 5
years). Cap: $3/w x DC-rated capacity; and
Green Refrigerant Credit - 10 % of cost of new air
conditioning equipment using an EPA-approved
non-ozone depleting refrigerant (2% x 5 years).
E. INCENTIVE LIMITS. The maximum tax credit amount is $2
million per building. The maximum tax credit amounts are:
Whole Building Credit Cap (aggregate) - $150/sq. ft. for base
building; $75/sq. ft. for tenant space; Base Building Credit
Cap (aggregate) - $150/sq. ft.; Tenant Space Credit Cap
(aggregate) - $75/sq. ft.; Fuel Cell Credit Cap - $1,000/kw x
DC-rated capacity; Photovoltaic Module Credit Cap- $3/w x
DC-rated capacity. The statewide maximum cumulative tax
credit amount is $25 million with another $25 million added in
2005.
1.
2.
3.
Taxpayer receiving tax credits may not seek
additional tax credit for the same building that
claimed tax credits in an earlier period.
Returned tax credit may be allocated to either a
taxpayer who already has been issued tax credit or to
other taxpayers who could apply for and be issued
tax credit.
Any annual tax credit amount above $2 million is
deferred until 2013 and 2014.
F. INCENTIVE TIMEFRAME. Taxpayer must apply for the tax
credit by December 31, 2009, which may be extended to
December 31, 2010 to exhaust the statewide maximum
cumulative tax credit amount. The tax credit must be claimed
by December 31, 2014. The tax credit period is 5 years.
Unused credit may be carried forward.
G. MISCELLANEOUS.
36.09
New York state tax credit for clean heating fuel
purchase
A. GENERAL DESCRIPTION. New York provides a franchise
and personal income tax credit in the amount of $0.01 per
percent of biodiesel per gallon of biodiesel purchased and used
for residential space heating and water heating. N.Y. Tax Law
§ 210.39; NY CLS Tax, Article 22 § 606 (mm). New York
Technical Service Bureau Memorandum TSB-M-08(5)C,
05/29/2008; A.B. 9710 (2010); S.B. 6039 (2012).
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer corporations or individuals purchasing biodiesel or
bioheat used for residential space heating and water heating.
C. QUALIFYING ACTIVITY.
Taxpayer must purchase
biodiesel or bioheat used for residential space heating and
water heating. Biodiesel is fuel comprised exclusively of
mono-alkyl esters of long chain fatty acids derived from
vegetable oils or animal fats, designated B100 (pure
biodiesel), which meets the specifications of ASTM
designation D 6751. Bioheat is a fuel comprised of biodiesel
blended with conventional home heating oil, which meets the
specifications of the American Society of Testing and
Materials (ASTM) designation D 396 or D 975. The
percentage of biodiesel included in the bioheat is the number
preceded by the letter “B” in the bioheat designation. For
example, bioheat designated B5 contains 5% biodiesel,
bioheat designated B20 contains 20% biodiesel, etc.
1.
2.
3.
Qualifying residential use is any use of a structure,
or part of a structure, as a place of abode maintained
by or for a person, whether or not owned by such
person, on other than a temporary or transient basis.
Residential use includes multi-family dwelling units
such as multi-family homes, apartment buildings,
condominiums, and cooperative apartments.
Qualifying residential use does not include part of a
structure used as a hotel, motel, or similar space,
except for those units used by the same occupant for
at least 90 consecutive days.
Qualifying use in buildings with both residential and
non-residential space and a common oil storage tank
is eligible for a partial credit based on the percentage
of square footage used for residential purposes.
D. INCENTIVE AMOUNTS.
The tax credit amount is
$0.01/gallon for each percent of biodiesel blended with
conventional home heating.
1. Taxpayer should have an invoice or bill that includes
the date of purchase the number of gallons of
bioheat purchased, and the percentage of biodiesel
included in the bioheat.
Fuel cell system equipment is an on-site electricity generation
system utilizing proton exchange membrane fuel cells.
1.
2.
E. INCENTIVE LIMITS. The maximum tax credit amount is
$0.20/gallon purchased. The tax credit is refundable up to $2
million. Any amount above $2 million is deferred until 2013
and 2014.
F. INCENTIVE TIMEFRAME. Taxpayer must claim the tax
credit for the tax year in which the qualifying bioheat is
purchased. Qualifying bioheat is deemed purchased on the
date of delivery, regardless of when payment occurs. The tax
credit expires December 31, 2016.
3.
D. INCENTIVE AMOUNTS. The tax credit amount is 25% of
the cost of equipment and installation for solar system
equipment and 20% of the cost of fuel cell system equipment.
1.
G. MISCELLANEOUS.
36.10
New York state personal income tax credit for solar
and fuel cell system equipment
2.
A. GENERAL DESCRIPTION. New York provides a personal
income tax credit in the amount of 25% of the cost of solar
energy system equipment and 20% of the cost of fuel cell
electric generating equipment. NY CLS Tax, Article 22 § 606
(g-1) and (g-2); A.B. 9710 (2010); A.B. 00034B (2012); New
York Technical Service Bureau Memorandum No. TSB-M12(10)I, 12/06/2012.
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer individuals installing solar and fuel cell system
equipment at their principal residence.
1.
2.
3.
4.
Taxpayers installing in a principal residence shared
by two or more taxpayers, may prorate the tax credit
according to the percentage of the total costs
contributed by each taxpayer.
Taxpayer condominium management associations or
cooperative housing corporations may allow
Taxpayer members or tenant-stockholders to claim a
proportionate share of the total tax credit attributable
to his or her principal residence.
Taxpayer lessors of qualifying solar energy system
equipment under a written agreement that spans at
least 10 years may claim the tax credit.
Taxpayer power purchasers generated by qualifying
solar energy system equipment under a written
agreement that spans at least 10 years may claim the
tax credit.
C. QUALIFYING ACTIVITY. Taxpayer must install solar or
fuel cell system equipment at their principal residence. Solar
system equipment is an arrangement or combination of
components utilizing solar radiation which produces energy
designed to provide heating, cooling, hot water or electricity.
Qualifying fuel cell system equipment must provide
a maximum rated baseload capacity of 25 kW and
must utilize proton exchange membrane (PEM)
technology.
Qualifying solar system equipment must comply
with the 10 kW capacity limit on residential, netmetered solar-energy systems (50 kW for
condominiums
and
cooperative
housing
associations).
Qualifying systems do not include pool heating or
other recreational applications.
3.
Qualifying costs include expenditures for materials,
labor costs properly allocable to on-site preparation,
assembly and original installation, architectural and
engineering services, and designs and plans directly
related to the construction or installation of the
qualifying equipment.
Qualifying costs do not include interest or other
finance charges.
Qualifying costs do not include the cost of property
financed by any federal, state or local grant received
by the taxpayer and which was not included in the
federal gross income of the taxpayer.
E. INCENTIVE LIMITS. The maximum tax credit amounts for
each residence are $5,000 for solar-energy systems and $1,500
per generating unit for fuel cells. Any annual tax credit
amount above $2 million is deferred until 2013 and 2014.
F. INCENTIVE TIMEFRAME. Unused tax credit may be carried
forward 5 years.
G. MISCELLANEOUS.
36.11
New York state sales tax exemption for residential and
commercial solar-energy systems equipment
A. GENERAL DESCRIPTION. New York provides a sales tax
exemption in the amount of 100% of the tax on residential and
commercial solar-energy systems. NY CLS Tax, Article 28 §
1115 (ee); N.Y. Tax Law §1210(a)(1) ; New York Department
of Taxation & Finance Publication 718-S, 08/01/2008; New
York Special Tax Department Notice ST-06-3, 02/01/2006;
New York Department of Taxation & Finance Publication No.
718-CS, 12/26/2012; New York Sales Tax Bulletin TB-ST-775,
09/17/2012.
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer purchasers of residential and commercial solarenergy systems.
C. QUALIFYING ACTIVITY.
Taxpayer must purchase
residential and commercial solar-energy systems. Residential
and commercial solar-energy systems are systems that utilize
solar radiation to produce energy designed to provide heating,
cooling, hot water and/or electricity.
1.
2.
Qualifying residential and commercial solar-energy
systems do not include solar pool heating or other
recreational applications.
Residential and commercial solar-energy systems do
not include property used in the transmission or
distribution of electricity is outside the production
process, including any interconnection equipment
components, substation equipment, meters, wire,
intra-solar facility electrical collection equipment,
cables, junction boxes, poles, step-up transformers
or other equipment used beyond the inverter.
D. INCENTIVE AMOUNTS.
100% of the sales tax due.
1.
2.
The tax exemption amount is
The law also permits local governments to grant an
exemption from local sales taxes.
See
http://www.tax.state.ny.us/pubs_and_bulls/publicati
ons/sales_pubs.htm The solar sales tax list is
Publication 718-S.
The exemption for commercial solar energy
equipment applies to the 4% state sales and use tax
and the 3/8% sales and use tax imposed in the
Metropolitan Commuter Transportation District
(MCTD); localities may elect to grant an exemption
for local sales and use taxes.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME.
G. MISCELLANEOUS.
36.12
New York state sales tax exemption for wind farm
components
A. GENERAL DESCRIPTION. New York provides a sales tax
exemption in the amount of 100% of the tax on wind farm
components. NY CLS Tax, Article 28 § 1115 (a)(1); NY CLS
Tax, Article 28 §1105-B; New York Department of Taxation
and Finance TSB-A-09(59)S.
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer purchasers of machinery, equipment, tools and
supplies used in connection with generating electricity for
sale.
C. QUALIFYING ACTIVITY. Taxpayer must purchase: (i)
machinery or equipment with a useful life of more than a year
for use or consumption directly and predominantly in the
generation of electricity for sale; or (ii) tools and supplies with
a useful life of one year or less and also exempts services for
installation and maintenance used in connection with such
generating machinery and equipment.
1.
2.
Qualifying property includes wind turbine
equipment, consisting of rotor blades, hub, nacelle
and tower, constitute a unitary piece of machinery or
equipment that is used directly and predominantly in
the generation of electricity for sale.
Qualifying property includes property purchased by
the wind farm operator or purchased by a contractor
or subcontractor and sold to the operator on an
installed basis.
D. INCENTIVE AMOUNTS.
100% of the sales tax due.
The tax exemption amount is
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME.
G. MISCELLANEOUS.
36.13
New York state tax income credit for fuel cell electric
generating equipment
A. GENERAL DESCRIPTION. New York provides an income
tax credit in the amount of 100% of the cost for fuel cell
electric generating equipment. N.Y. Tax Law § 210.37.
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer purchasing biodiesel or bioheat used for fuel cell
electric generating equipment.
C. QUALIFYING ACTIVITY. Taxpayer must purchase fuel cell
electric generating equipment. Fuel cell electric generating
equipment are onsite electricity generation units utilizing
proton exchange membrane fuel cells, providing a rated
baseload capacity of no less than one kilowatt and no more
than 100 kilowatts of electricity. Materials, labor for onsite
preparation, assembly and original installation, engineering
services, designs and plans directly related to construction or
installation and utility compliance costs.
1.
Fuel cell electric generating equipment does not
include interest or other finance charges, or the
amount of any federal, state or local grants received.
D. INCENTIVE AMOUNTS. The tax credit amount is 100% of
the cost of fuel cell electric generating equipment.
E. INCENTIVE LIMITS. The maximum tax credit amount is
$1,500 per unit.
F. INCENTIVE TIMEFRAME.
G. MISCELLANEOUS.
1.
36.14
New York state property tax exemption for green
buildings
A. GENERAL DESCRIPTION. New York provides a property
tax exemption in various amount of the tax on green buildings.
NY RPT Law §470; S.B. 1462 (2012).
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer owners of green buildings.
Alternative fuel also includes qualifying B20 fuel.
D. INCENTIVE AMOUNTS. The tax exemption amount is
100% of the sales tax due. The tax exemption amount is 20%
for retail sales of qualifying B20 fuel.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME. The tax exemption expires
August 31, 2014.
G. MISCELLANEOUS.
1.
Taxpayer must be certified by the assessor of the
local jurisdiction.
C. QUALIFYING ACTIVITY. Taxpayer must own a green
building. A green building is any building that meets LEED
certification standards for green buildings, Green Building
Initiative's Green Globes rating system. the American National
Standards Institute, or substantially equivalent standards for
certification using a similar program for green buildings as
determined by the local jurisdiction.
1. Green building improvements do not include
ordinary maintenance and repairs.
D. INCENTIVE AMOUNTS. The tax exemption amount of
property tax due is the amount of any increase in assessed
value resulting from the construction or reconstruction of the
qualifying property. The tax exemption amount is: (i) for
LEED Certified Silver, 100% in years 1 through 3, and a 20%
decrease every year thereafter; (ii) for LEED Certified Gold,
100% in years 1 through 4, and a 20% decrease every year
thereafter; and (iiii) for LEED Certified Platinum, 100% in
years 1 through 6, and a 20% decrease every year thereafter;
E. INCENTIVE LIMITS. The local jurisdiction must adopt local
laws to grant the property tax exemption.
F. INCENTIVE TIMEFRAME.
G. MISCELLANEOUS.
36.15
New York state sales tax exemption for alternative fuel
sales
A. GENERAL DESCRIPTION. New York provides a sales tax
exemption in the amount of 100% of alternative fuel sales.
N.Y. Tax Law §1115(42); A.B. 9710 (2010).
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayers purchasing alternative fuel.
C. QUALIFYING ACTIVITY.
Taxpayer must purchase
alternative fuel. Alternative fuel is E85, CNG or hydrogen,
for use or consumption directly and exclusively in the engine
of a motor vehicle.
37.
North Carolina State Tax Incentives for Renewable
Energy and Green Building
37.01
North Carolina state income tax credit for renewable
energy systems
6.
A. GENERAL DESCRIPTION. North Carolina provides a
corporate or personal income tax credit in the amount of 35%
of the cost of renewable energy systems. N.C. Gen. Stat.
§105-129.15 et seq.; HB 512 (2009); North Carolina
Directive CD-08-2, 09/15/2008 ; Guidelines for Determining
the Tax Credit for Investing in Renewable Energy Property,
NC Dept. of Revenue, 09/15/2008; N.C. Gen. Stat. §105129.16H.; S388 (2010); H.B. 1829 (2010).
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer corporations or individuals purchasing and installing
or leasing eligible renewable energy property. The tax credit
may be used against the franchise, gross premiums, corporate
and personal income tax.
1.
Taxpayer may be a donor to nonprofit organization
or unit of State or local government to enable the
nonprofit or government unit to acquire renewable
energy property.
D. INCENTIVE AMOUNTS. The tax credit amount is 35% of
the cost of renewable energy property.
1.
C. QUALIFYING ACTIVITY. Taxpayer must purchase and
install or lease renewable energy property. Renewable energy
property is:
1.
2.
3.
4.
5.
Biomass equipment that uses renewable biomass
resources for biofuel production of ethanol,
methanol, and biodiesel; anaerobic biogas
production of methane utilizing agricultural and
animal waste or garbage; or commercial thermal or
electrical generation. Biomass equipment includes
related devices for converting, conditioning, and
storing the liquid fuels, gas, and electricity produced
with biomass equipment.
Hydroelectric generators located at existing dams or
in free flowing waterways, and related devices for
water supply and control, and converting,
conditioning, and storing the electricity generated.
Solar energy equipment that uses solar radiation as a
substitute for traditional energy for water heating,
active space heating and cooling, passive heating,
daylighting, generating electricity, distillation,
desalination, detoxification, or the production of
industrial or commercial process heat. Solar energy
equipment includes related devices necessary for
collecting, storing, exchanging, conditioning, or
converting solar energy to other useful forms of
energy.
Wind equipment required to capture and convert
wind energy into electricity or mechanical power,
and related devices for converting, conditioning, and
storing the electricity produced.
Geothermal heat pumps that is a heat pump that uses
the ground or groundwater as a thermal energy
source to heat a structure or as a thermal energy sink
to cool a structure or uses the internal heat of the
earth as a substitute for traditional energy for water
heating or active space heating or cooling..
Combined heat and power systems that uses the
same energy source for the simultaneous or
sequential generation of electrical power,
mechanical shaft power, or both, in combination
with the generation of steam or other forms of useful
thermal energy (including heating and cooling
applications), which produces at least 20% of its
total useful energy in the form of thermal energy
which is not used to produce electrical or
mechanical power (or combination thereof), and at
least 20% of its total useful energy in the form of
electrical or mechanical power (or combination
thereof), the energy efficiency percentage of which
exceeds 60%.
2.
The cost of renewable energy property includes the
cost of the equipment and associated design;
construction costs; and installation costs less any
discounts,
rebates,
advertising,
installationassistance credits, name-referral allowances or other
similar reductions. The cost of renewable energy
property is not reduced by grants made under the
American Recovery and Reinvestment Tax Act of
2009.
The tax credit amount for a taxpayer donor is the
share of the credit is calculated by dividing the
taxpayer's donation by the cost of the renewable
energy property constructed, purchased, or leased by
the nonprofit organization or government unit and
placed in service during the taxable year and then
multiplying this percentage by the amount of the
credit the nonprofit organization or government unit
could claim if it were subject to tax.
E. INCENTIVE LIMITS. The maximum tax credit amount is
$2.5 million per business installation. For nonbusiness
purposes, the maximum tax credit amounts are: $3,500 per
dwelling unit for residential active space heating, combined
active space and domestic water-heating systems, and passive
space heating; $1,400 per dwelling unit for residential solar
water-heating systems, including solar pool-heating systems;
$10,500 per installation for photovoltaic systems (also known
as PV systems or solar-electric systems), wind-energy systems
or certain other renewable-energy systems for residential use;
$8,400 for geothermal heat pumps and geothermal equipment
that uses geothermal energy for water heating or active space
heating or cooling. The maximum annual tax credit allowed
to be claimed is 50% of a taxpayer's state tax liability.
1.
Renewable energy property is placed in service for a
business purpose if the useful energy generated by
the property is offered for sale or is used on-site for
a purpose other than providing energy to a
residence.
equipment used directly and exclusively for the conversion of
solar energy for heating or cooling.
F. INCENTIVE TIMEFRAME. The tax credit is taken over 5
years.
For renewable energy property that serves a
nonbusiness purpose, the tax credit must be taken for the
taxable year in which the property is placed in service. The
tax credit expires December 31, 2015.
D. INCENTIVE AMOUNTS. The tax abatement amount is
100% of the property tax due.
1.
Taxpayer donor must take the tax credit in the
taxable year in which the property is placed in
service.
G. MISCELLANEOUS. Taxpayer who claims a tax credit under
this section based on a donation to a nonprofit organization or
a unit of State or local government is not allowed to deduct the
donation as a charitable contribution.
37.02
North Carolina state property tax assessment for solar
energy electric system
A. GENERAL DESCRIPTION. North Carolina provides a
property tax assessment in the amount of 80% the cost of solar
energy electric system. N.C. Gen. Stat. §105-275 (section 45).
B. ELIGIBLE TAXPAYERS. The tax assessment is available to
Taxpayer owners installing solar energy electric system
property.
C. QUALIFYING ACTIVITY. Taxpayer must install a solar
energy electric system. A solar energy electric system is all
equipment used directly and exclusively for the conversion of
solar energy to electricity.
D. INCENTIVE AMOUNTS. The tax exemption amount is 80%
of the property tax due.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME.
G. MISCELLANEOUS.
37.03
North Carolina state property tax abatement for
active solar heating and cooling systems
A. GENERAL DESCRIPTION. North Carolina provides a
property tax abatement in the amount of 100% of active solar
heating and cooling systems. N.C. Gen. Stat. §105-277.
B. ELIGIBLE TAXPAYERS. The tax abatement is available to
Taxpayer owners of solar heating and cooling system
property.
C. QUALIFYING ACTIVITY. Taxpayer must install solar
heating and cooling system property. Qualifying property
includes all controls, tanks, pumps, heat exchangers and other
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME.
G. MISCELLANEOUS.
37.04
North Carolina state income tax credit for renewable
fuel facilities
A. GENERAL DESCRIPTION.
North Carolina provides
corporate income tax credit over 3 or 7 years in the amount of
15% of the cost of constructing and installing a renewable fuel
dispensing facility, 25% of the cost of constructing and
equipping a commercial facility for processing renewable fuel,
and 35% of the cost of constructing and equipping three or
more commercial facilities for processing renewable fuel and
that invest a total amount of at least $400 million in the
facilities. N.C. Gen. Stat. §105-129.16D et seq.; H.B. 1829
(2010).
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer corporations or individuals constructing, installing,
and placing in service renewable fuel commercial facilities.
C. QUALIFYING ACTIVITY. Taxpayer must construct, install
or place in service a renewable fuel commercial facility.
Renewable fuel commercial facilities include renewable fuel
dispensing facilities and renewable fuel processing facilities.
Renewable fuel is either biodiesel fuel, or ethanol either
unmixed or in mixtures with gasoline that are 70% or more
ethanol by volume. Qualifying renewable fuel dispensing
facility is the equipment used to store or dispense renewable
fuel is labeled for this purpose and clearly identified as
associated with renewable fuel. Qualifying renewable fuel
dispensing facilities include the pumps, storage tanks, and
related equipment, that is directly and exclusively used for
dispensing or storing renewable fuel.
1.
Taxpayer must construct or equip 3 or more
renewable fuel processing facilities and invest a total
amount of at least $400 million in the renewable fuel
processing facilities to qualify for the 35% tax
credit.
D. INCENTIVE AMOUNTS. For qualifying renewable fuel
dispensing facilities, the tax credit amount over 3 years is 15%
of the costs. For qualifying renewable fuel processing
facilities, the tax credit amount over 7 years is 25% or 35% of
the costs.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME. The tax credit must be taken
over 3 years for qualifying renewable fuel dispensing facilities
and 7 years for qualifying renewable fuel production facilities.
The tax credit expires December 31, 2012. Unused tax credit
may be carried forward 10 years.
G. MISCELLANEOUS. The tax credit may be disallowed if
portion of the facility directly and exclusively used for
dispensing or storing renewable fuel is disposed of or taken
out of service or fails to meet such qualifying requirements but
meets the production credit requirements. Taxpayer may be
liable for the additional taxes avoided plus interest at the rate
established under state law.
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayers purchasing energy Star-certified products.
C. QUALIFYING ACTIVITY. Taxpayer must purchase Energy
Star certified products including clothes washers, freezers and
refrigerators, central air conditioners and room air
conditioners, air-source heat pumps and geothermal heat
pumps, ceiling fans, dehumidifiers and programmable
thermostats.
1. Qualifying products must not be for use in a trade or
business, or for rental appliances.
D. INCENTIVE AMOUNTS.
100% of the sales tax due.
The tax exemption amount is
E. INCENTIVE LIMITS.
37.05
North Carolina state corporate income tax credit for
biodiesel production
A. GENERAL DESCRIPTION.
North Carolina provides
corporate income tax credit in the amount of 100% of the
excise tax paid on biodiesel produced. N.C. Gen. Stat. §105129.16F; H.B. 1829 (2010).
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer corporations producing biodiesel fuel.
C. QUALIFYING ACTIVITY. Taxpayer must produce biodiesel
fuel.
Biodiesel is liquid fuel derived in whole from
agricultural products, animal fats, or wastes from agricultural
products or animal fats. Qualifying production must be at
least 100,000 gallons of biodiesel during the tax year.
D. INCENTIVE AMOUNTS. The tax credit amount is 100% of
the per gallon motor fuels excise tax paid.
E. INCENTIVE LIMITS. The maximum tax credit amount is
$500,000. The maximum tax credit allowed to be claimed is
50% of the tax liability, reduced by the sum of all other tax
credits allowed against that tax liability. Unused tax credit
may be carried forward 5 years.
F. INCENTIVE TIMEFRAME. The tax credit expired December
31, 2012.
G. MISCELLANEOUS.
37.06
North Carolina state sales tax exemption
residential energy-efficient appliances
for
A. GENERAL DESCRIPTION. North Carolina provides a sales
tax exemption in the amount of 100% of the tax on residential
energy-efficient appliances. N.C. Gen. Stat. §105-164.13D.
F. INCENTIVE TIMEFRAME. The tax exemption period is the
first Friday of November through the following Sunday.
G. MISCELLANEOUS.
37.07
North Carolina state income tax credit for renewable
energy property manufacturing facilities
A. GENERAL DESCRIPTION. North Carolina provides an
income tax credit over 5 years in the amount of 25% of the
cost of constructing and installing a renewable energy
property manufacturing facility. N.C. Gen. Stat. § 105130.28; N.C. Gen. Stat. §105-129.16I et seq.; H.B. 1829
(2010).
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer constructing, installing, and placing in service
renewable energy property manufacturing facilities.
C. QUALIFYING ACTIVITY. Taxpayer must construct, install
or place in service a renewable energy property manufacturing
facility. Renewable energy property manufacturing facilities
are commercial facilities for the manufacture of renewable
energy property or a major component subassembly for a solar
array or a wind turbine.
D. INCENTIVE AMOUNTS. For qualifying renewable fuel
dispensing facilities, the tax credit amount over 3 years is 15%
of the costs. For qualifying renewable fuel processing
facilities, the tax credit amount over 7 years is 25% or 35% of
the costs.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME. The tax credit is taken over a 5year period. The tax credit expires December 31, 2013.
G. MISCELLANEOUS.
Ohio State Tax Incentives for Renewable Energy and
Green Building
39.
39.01
Ohio state tax exemptions for air quality renewable,
energy efficiency or conservation projects
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME.
G. MISCELLANEOUS.
A. GENERAL DESCRIPTION. Ohio provides a property tax
exemption in the amount of 100% of the tax and a sales and
corporate franchise in various amounts on air quality
renewable, energy efficiency or conservation projects. Ohio
Rev. Code Ann. §3706 et seq; Ohio Rev. Code Ann. §5739 et
seq.
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer owners of qualifying air quality facilities.
1.
Taxpayer must be certified by the OH Air Quality
Development Authority.
C. QUALIFYING ACTIVITY. Taxpayer must own qualifying
air quality facilities. Qualifying air quality facilities include
any energy efficiency or conservation project and any project
that uses renewable or biomass resources, including ethanol
and other biofuel.
D. INCENTIVE AMOUNTS. The tax exemption amount is
100% of the property tax due. The tax exemption on the
corporate franchise tax and sales tax varies.
E. INCENTIVE LIMITS.
39.03
Ohio state property tax exemption for solar, wind, and
hydrothermal energy systems
A. GENERAL DESCRIPTION. Ohio provides property tax
exemption in the amount of 100% of the tax on solar and wind
energy systems and hydrothermal energy systems. Ohio Rev.
Code Ann. §5709.53; Ohio Rev. Code Ann. §1551.20; Ohio
Dept. of Dev., Emergency Regs. §§ 122:23-1-01 to -11.
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer owners of solar and wind energy systems and
hydrothermal energy systems.
C. QUALIFYING ACTIVITY. Taxpayer must own a solar or
wind energy system or hydrothermal energy system. A solar
and wind energy system is a method used directly to provide
space heating or cooling, hot water, industrial process heat or
mechanical or electric power by the collection, conversion or
storage of solar or wind energy, including, but not limited to,
active or passive solar systems. A hydrothermal energy
system is any method used directly to provide a heating or
cooling effect by causing a thermal exchange with the earth
utilizing any water source, including ground or surface water,
by use of appropriate heat exchange equipment.
F. INCENTIVE TIMEFRAME.
1.
G. MISCELLANEOUS.
2.
39.02
Ohio state property tax financing option for special
energy improvement districts
A. GENERAL DESCRIPTION. Ohio provides a property tax
financing option for municipalities for special energy
improvement districts. H.B. 1.(2009).
B. ELIGIBLE TAXPAYERS. The tax financing is available to
Taxpayer owners financing photovoltaic or solar-thermal
systems on real property.
1.
Taxpayers must provide their solar -energy project
plans as part of the petition, as it would serve as the
request and basis for levying the special assessment
on the participating owners' property.
C. QUALIFYING ACTIVITY. Taxpayer must own and finance
photovoltaic or solar-thermal systems on real property.
D. INCENTIVE AMOUNTS. The tax credit amount varies by
local jurisdiction.
Qualifying energy systems must be certified by the
OH Director of Development.
Qualifying energy systems include a substation
connected to the generation equipment is included in
the exemption if the substation is owned by the same
person who owns the interconnected wind turbines,
solar panels, or other generation equipment
D. INCENTIVE AMOUNTS. The tax exemption amount is
100% of the property tax due.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME.
G. MISCELLANEOUS.
39.04
Ohio state income tax credit for ethanol plant
investment
A. GENERAL DESCRIPTION. Ohio provides an income tax
credit in the amount of 50% of investments in the construction
and operation of a certified ethanol facility. Ohio Rev. Code
Ann. §5733.46.
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayers investing in certified ethanol facilities.
1.
2.
Taxpayer must be certified by the OH Ethanol
Incentive Board.
Facility must be majority owned by Ohio farmers.
C. QUALIFYING ACTIVITY. Taxpayer must invest in the
construction and operation of a certified ethanol facility.
Ethanol is fermentation ethyl alcohol derived from agricultural
products, including potatoes, cereal, grains, cheese whey, and
sugar beets; forest products; or other renewable resources,
including residue and waste generated from the production,
processing, and marketing of agricultural products, forest
products, and other renewable resources that meet all of the
specifications in the ASTM Specification D 4806-88 and is
denatured as specified in Parts 20 and 21 of Title 27 of the
Code of Federal Regulations.
1.
Qualifying ethanol does not include fermentation
ethyl alcohol derived from biomass resources.
D. INCENTIVE AMOUNTS. The tax credit amount is 50% of
the amount invested in the construction and operation of a
certified ethanol facility.
E. INCENTIVE LIMITS. The maximum tax credit amount is
$5,000 per certified ethanol plant.
F. INCENTIVE TIMEFRAME. The tax credit must be claimed
in the tax year immediately following the calendar year in
which the investment was made. The tax credit expires
December 31, 2012. Unused tax credit may be carried
forward 3 years.
improvements is the recovery of waste heat or steam produced
in any commercial or industrial processes. Solid waste
conversion is the use of waste to produce energy and the
utilization of such energy. Qualifying systems include solarthermal systems, photovoltaic systems, wind, biomass, landfill
gas and waste-recovery systems.
D. INCENTIVE AMOUNTS. The tax exemption amount is
100% of the corporate franchise tax, sales tax and property tax
due.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME.
G. MISCELLANEOUS. The corporate franchise tax will be
phased-out by 2010 for most taxpayers.
39.06
Ohio state income tax credit for alternative fuel
retailers
A. GENERAL DESCRIPTION. Ohio provides an income tax
credit in the amount of $0.035-0.15 per gallon of alternative
biodiesel fuel sold. Ohio Rev. Code Ann. §§ 5733.48; Ohio
Rev. Code Ann. §5747.77 et seq.; S.B. 131 (2010).
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer retail dealers of alternative fuel sold and dispensed
through a metered pump at the Taxpayer retail dealer's retail
service station.
1.
G. MISCELLANEOUS.
39.05
Ohio state property tax exemptions for energy
conversion and thermal efficiency improvements
C. QUALIFYING ACTIVITY. Taxpayer sell alternative fuel at
retail. Alternative fuel is E85 blend fuel or blended biodiesel.
1.
A. GENERAL DESCRIPTION.
Ohio provides corporate
franchise tax, sales tax and property tax exemptions in the
amount of 100% of tax on energy conversion and thermal
efficiency improvements. Ohio Rev. Code Ann. §5709.20 et
seq.; Ohio Rev. Code Ann. §5733.05; OAC 5703-1-06.
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer owners of property used in energy conversion,
thermal-efficiency improvements and the conversion of solid
waste to energy.
C. QUALIFYING ACTIVITY. Taxpayer must own property
used in energy conversion, thermal-efficiency improvements
and the conversion of solid waste to energy. Energy
conversion is the replacement of fossil-fuel resources with
alternative fuels or technologies.
Thermal efficiency
An equity owner of Taxpayer that is a pass-through
entity may claim the owner's distributive or
proportionate share of the tax credit for the equity
owner's taxable year that includes the last day of the
Taxpayer's taxable year.
E85 blend fuel is fuel containing eighty-five per cent
or more ethanol, or containing any other percentage
of not less than seventy per cent ethanol if the
United States department of energy determines, by
rule, that the lower percentage is necessary to
provide for the requirements of cold start, safety, or
other vehicle functions, and that meets the American
society for testing and materials specification for
E85 blend fuel. Ethanol is fermentation ethyl
alcohol derived from agricultural products, including
potatoes, cereal, grains, cheese whey, and sugar
beets; forest products; or other renewable resources,
including residue and waste generated from the
production, processing, and marketing of
agricultural products, forest products, and other
renewable resources that meet all of the
specifications in the American society for testing
and materials (ASTM) specification D 4806-88 and
2.
is denatured as specified in Parts 20 and 21 of Title
27 of the Code of Federal Regulations.
Blended biodiesel is a blend of biodiesel with
petroleum-based diesel fuel in which the resultant
product contains not less than 6% biodiesel and
meets the American society for testing and materials
specification for blended diesel fuel. Biodiesel is a
mono-alkyl ester combustible liquid fuel that is
derived from vegetable oils or animal fats, or any
combination of those reagents that meets the
American society for testing and materials
specification for biodiesel fuel (B100) blend stock
distillate fuels.
of the pulping process or wood manufacturing process,
including bark, wood chips, sawdust, and lignin in spent
pulping liquors. Renewable energy resource includes, but is
not limited to, any fuel cell used in the generation of
electricity, including, but not limited to, a proton exchange
membrane fuel cell, phosphoric acid fuel cell, molten
carbonate fuel cell, or solid oxide fuel cell; wind turbine
located in the state's territorial waters of Lake Erie; storage
facility that will promote the better utilization of a renewable
energy resource that primarily generates off peak; or
distributed generation system used by a customer to generate
electricity from any such energy.
1.
D. INCENTIVE AMOUNTS. The tax credit amount is $0.15 per
gallon for fuel sold in 2010. The tax credit amount is $0.13
per gallon for fuel sold (and dispensed in that manner) in
2011.
1.
The tax credit amount for blended biodiesel
containing 10-20% biodiesel is $0.075 per gallon.
The tax credit amount for blended biodiesel
containing 6-10% biodiesel is $0.035 per gallon.
2.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME.
December 31, 2011.
The tax credit expires on
G. MISCELLANEOUS.
39.07
Ohio state property tax exemptions for qualified
energy projects
A. GENERAL DESCRIPTION. Ohio provides a property tax
exemption in the amount of 100% of tax on qualified energy
projects, with an annual service payment in lieu of taxes of
$6,000-8,000. Ohio Rev. Code Ann. §5727.75 et seq.; S232
(2010).
3.
Qualified energy projects must maintain a 50-80%
minimum ratio of Ohio domiciled full-time
equivalent employees employed in the construction
or installation of the project to total full-time
equivalent employees employed in the construction
of installation of the project.
For projects with a nameplate capacity of more than
2 megawatts, taxpayers must establish a relationship
with a member of the university system of Ohio or
with a person offering an apprenticeship program
registered with the U.S. Department of Labor or the
Ohio Apprenticeship Council to educate and train
individuals for careers in the wind or solar energy
industry.
For projects with a nameplate capacity of 5
megawatts or greater, taxpayers must also repair all
roads, bridges, and culverts affected by construction
as reasonably required to restore them to their
precondition condition and equip fire and emergency
responders with proper equipment.
D. INCENTIVE AMOUNTS. The tax exemption amount is
100% of the corporate franchise tax, sales tax and property tax
due. There is an annual service payment in lieu of taxes of
$6,000-8,000, depending on the type of energy project and
ration of Ohio-domiciled full-time equivalent employees
employed.
E. INCENTIVE LIMITS.
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer owners of real and personal property that is a
qualified energy project.
1.
Taxpayer must be certified by the OH Power Sitting
Board and the Director of Development.
C. QUALIFYING ACTIVITY. Taxpayer must own a qualified
energy project certified by the Director of Development. A
qualified energy project is a project to provide electric power
through the construction, installation, and use of a renewable
energy resource facility. Renewable energy resource is solar
photovoltaic or solar thermal energy, wind energy, power
produced by a hydroelectric facility, geothermal energy, fuel
derived from solid wastes, through fractionation, biological
decomposition, or other process that does not principally
involve combustion, biomass energy, biologically derived
methane gas, or energy derived from nontreated by-products
F. INCENTIVE TIMEFRAME. Applications must be submitted
by December 31, 2011. Construction or installation of the
energy facility must begin on or after January 1, 2009, and
before January 1, 2012. The project property must be placed in
service before January 1, 2013. Cogeneration technology is
exempt from property tax if the property was placed in
serviced before January 1, 2017.
G. MISCELLANEOUS.
42.
Pennsylvania State Tax Incentives for Renewable
Energy and Green Building
42.01
Pennsylvania state income tax credit for alternative
energy production
1.
Pennsylvania provides an
A. GENERAL DESCRIPTION.
income tax credit in the amount of 15% of the costs of
alternative energy production projects.
73 Penn. Stat.
§1649.701 et seq. Answers to Commonly Asked Questions
Regarding the Alternative Energy Production (AEP) Tax
Credit” – PA DOR.
2.
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayers developing or constructing alternative energy
production projects. The tax credit may be used against
personal state income taxes, corporate state income taxes, or
the capital-stock & foreign state franchise tax.
1.
2.
3.
Taxpayer must be certified by the PA Department
of Environmental Protection.
Taxpayer awardees may sell or assign tax credit to
another party with approval of the PA Department of
Environmental Protection if no claim for the tax
credit is made within 1 year of application approval.
Any returns filed before the end of the 1-year period
must claim as much of the tax credit as possible.
Taxpayer purchaser or assignee must claim the tax
credit immediately.
Pass-through entities are permitted to transfer all or
part of tax credit to Taxpayer shareholders,
members, or partners in proportion to their share of
the distributed income. Transferred credits must be
redeemed during the year they are transferred. Any
unused credit passed through to an individual is lost;
it cannot be carried over, carried back, sold,
assigned or passed through to any other entity or
individual.
C. QUALIFYING ACTIVITY. Taxpayer must develop or
construct an alternative energy production project. An
alternative energy production project includes facilities that
produce energy from wind, solar, biomass, geothermal, waste
coal, waste energy, large-scale and low-impact hydropower,
biologically derived methane gas, fuel cells and alternative
fuels as defined under the Alternative Energy Portfolio
Standard. Alternative energy production projects include
facilities that manufacture or produce products which provide
alternative energy or alternative fuels, improve energy
efficiency or conserve energy, research and develop
technology to provide alternative energy sources or alternative
fuels, develop or enhance the transportation of alternative
fuels via rail, develop new more efficient locomotives, or
enhance the efficiency of existing locomotives.
1. Qualifying alternative energy production projects
must have an expected useful life of 4 years or
longer.
D. INCENTIVE AMOUNTS. The tax credit amount is 15% of
the cost of the alternative energy production project.
The cost of the alternative energy production
projects include all development, equipment and
construction costs paid for qualifying alternative
energy projects.
The cost of the alternative energy production
projects does not include costs paid for by any
federal, state, and local government grant or subsidy.
E. INCENTIVE LIMITS. The maximum annual tax credit
amount is $1 million. The maximum cumulative tax credit
amount varies. The maximum annual tax credit allowed to be
claimed is 50% of their qualifying tax liability for that year.
The statewide maximum annual tax credit amounts are: $5
million for 2009 - 2012; $8 million for 2013; $10 million for
2014 - 2015; and $2 million for 2016.
1.
2.
3.
The tax credit may not be applied to a joint tax
return.
The assigned tax credits may not be carried forward,
carried back, sold, assigned or refunded.
If statewide maximum annual tax credit amounts are
exceeded, each Taxpayer's credit will be pro-rated.
F. INCENTIVE TIMEFRAME. Taxpayer must apply for the tax
credit by September 15 of the following year. The tax credit
expires December 31, 2016. Unused tax credit may be carried
forward 5 years.
G. MISCELLANEOUS.
1.
2.
42.02
Taxpayer buyers and sellers must report gains from
the sale of the tax credit.
Tax credit for taxes paid to other states and the Tax
Forgiveness credit must be applied to the liability
before the tax credit may claimed.
Pennsylvania state property tax exemption for
commercial wind farms
A. GENERAL DESCRIPTION.
Pennsylvania provides a
property tax exemption in the amount of 100% of the tax on
wind turbines and related equipment (including towers and
foundations). 72 Penn. Stat. §5453.201 et seq. (2007).
B. ELIGIBLE TAXPAYERS. The tax assessment is available to
Taxpayer owners of commercial wind farm real property.
C. QUALIFYING ACTIVITY. Taxpayer must own commercial
wind farm real property. Commercial wind farm real property
includes wind turbine generated generators or related wind
energy appliances and equipment, including towers and tower
foundations.
D. INCENTIVE AMOUNTS. The tax exemption is 100% of the
property tax due.
E. INCENTIVE LIMITS. The valuation of real property used
for the purpose of wind-energy generation will utilizing the
income capitalization approach to value.
F. INCENTIVE TIMEFRAME. Taxpayer must provide relevant,
nonproprietary lease and lease-income information to county
assessors by September 1 of each year.
G. MISCELLANEOUS.
Rhode Island State Tax Incentives for Renewable
Energy and Green Building
44.
44.01
Rhode Island state sales tax exemption for renewable
energy systems and equipment
A. GENERAL DESCRIPTION. Rhode Island provides a sales
tax exemption in the amount of 100% of the tax on renewable
energy systems and equipment. R.I. Gen. Laws §44-1830(57).
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer purchasers of renewable energy systems and
equipment.
C. QUALIFYING ACTIVITY. Taxpayer must purchase of
renewable energy systems and equipment. Renewable energy
systems and equipment include solar photovoltaic modules or
panels, or any module or panel that generates electricity from
light; solar thermal collectors, including those manufactured
with flat glass plates, extruded plastic, sheet metal, and/or
evacuated tubes; geothermal heat pumps, including both
water-to-water and water-to-air type pumps; wind turbines;
towers used to mount wind turbines if specified by or sold by
a wind turbine manufacturer; DC to AC inverters that
interconnect with utility power lines; manufactured mounting
racks and ballast pans for solar collector, module or panel
installation.
D. INCENTIVE AMOUNTS.
100% of the sales tax due.
The tax exemption amount is
G. MISCELLANEOUS.
44.03
Rhode Island state income tax credit for hydroelectric
power installation
A. GENERAL DESCRIPTION.
Rhode Island provides a
corporate or personal income tax credit, in the amount of 10%
of the installation cost of small hydroelectric power facilities.
R.I. Gen. Laws §44-30-22 et seq.
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer corporations and individuals installing small
hydroelectric power facilities.
C. QUALIFYING ACTIVITY. Taxpayer must install a small
hydroelectric power facility. A small hydroelectric power
facility is any in-state hydroelectric power project that uses the
water power potential of an existing dam, and that has no
more than 15,000 kilowatts of installed capacity.
D. INCENTIVE AMOUNTS. The tax credit amount is 10% of
the cost of the small hydroelectric power facility.
E. INCENTIVE LIMITS. The maximum tax credit amount is
$50,000. Unused credits may be carried forward 5 years.
F. INCENTIVE TIMEFRAME.
G. MISCELLANEOUS.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME.
G. MISCELLANEOUS.
44.02
Rhode Island state property tax exemption for
renewable-energy systems
A. GENERAL DESCRIPTION.
Rhode Island provides a
property tax exemption in the amount of 100% of the tax on
renewable-energy systems. R.I. Gen. Laws §44-3-21.
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer owners of renewable energy system property.
C. QUALIFYING ACTIVITY. Taxpayer must own renewable
energy system property.
D. INCENTIVE AMOUNTS. The tax exemption amount is
100% of the property tax due.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME.
44.04
Rhode Island state income tax credit for residential
renewable energy systems
A. GENERAL DESCRIPTION.
Rhode Island provides an
income tax credit in the amount of 25% of the cost of
residential renewable energy systems. R.I. Gen. Laws §44-571, et seq.; H.B. 6332 (2010); [Repealed]
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer owners, renters, contract buyers or speculative
sellers of residences incorporating renewable energy systems
and Taxpayer purchasers of residential renewable energy
systems.
1.
2.
Taxpayer must be certified by the RI Office of
Energy Resources.
Taxpayer members or partners of pass-through
entities divide the tax credit in the same manner as
income.
C. QUALIFYING ACTIVITY. Taxpayer must own, rent, or sell
residences incorporating renewable energy systems or
purchase residential renewable energy systems. Renewable
energy systems include photovoltaic systems (on-grid and off-
grid), solar hot-water systems, active solar-heating systems,
wind-energy systems and geothermal-energy systems.
1.
2.
3.
4.
5.
6.
Qualifying photovoltaic systems must have a
minimum module size of 24 square feet, and must
either be connected to the grid or to a battery-storage
system.
Qualifying solar domestic hot water system is a
configuration of solar collectors, pump, heat
exchanger, and storage tank designed to heat water.
Solar domestic hot water system include forced
circulation, integral collector storage, thermosyphon,
and self-pumping. Solar domestic hot water system
is considered a new system if changes occur in type
or size of collectors, heat exchanger type or
effectiveness, size of storage tank, or system type.
Solar domestic hot water systems must have a
minimum collector area of 34 square feet and must
include a storage tank that holds at least 80 gallons.
Qualifying active solar-heating systems must have a
minimum collector area of 125 square feet, and must
include a system for storing and/or distributing heat
to the living area of a house.
Qualifying wind energy system is a system that
produces electricity through the use of wind
generators or wind turbines.
The electricity
produced must be used directly, as in water pumping
applications, or stored in batteries for household
usage. Wind energy systems can used alone or used
as part of a hybrid system, in which their output is
combined with photovoltaics and/or a fossil fuel
generator. Wind energy systems must have a rotor
diameter of at least 44 inches and a minimum
factory-rated output of at least 250 watts at 28 miles
per hour.
Qualifying geothermal system is a system that
produces and stores energy to heat buildings, cool
buildings or produces hot water.
Geothermal
systems must have either a minimum coefficient of
performance of 3.4, or an efficiency ratio of 16 or
greater.
Geothermal systems must have a
commissioning sign-off by the manufacturer or
distributor of the equipment to verify the proper
installation and performance of the system.
Geothermal systems must meet the following
standards: ARI/ASHRAE/ISO-13256-1 for water-toair geothermal systems; ARI/ASHRAE/ISO-132562 for water-to-water geothermal systems;
ARI/ASHRAE/ISO-13256 GWHP for groundwater
heat pumps; ARI/ASHRAE/ISO-13256 GLHP for
closed-loop heat pumps.
Qualifying renewable energy systems do not include
passive solar space-heating systems, passive solar
hot-water systems, sunspaces, solar greenhouses,
photovoltaic and wind systems on boats or
recreational vehicles, solar collectors for pools,
existing renewable-energy systems, used renewableenergy equipment, and repairs and replacements of
existing renewable-energy systems.
D. INCENTIVE AMOUNTS. The tax credit amount is 25% of
the cost of the renewable energy system.
E. INCENTIVE LIMITS. The maximum annual tax credit
allowed to be claimed is 100% of the excess of the tax due
above the minimum tax due. The maximum tax credit
amounts are the tax credit amount for $15,000 of PV, windenergy and active solar-heating systems and $7,000 of solar
hot-water and geothermal systems;
F. INCENTIVE TIMEFRAME. The tax credit may be claimed in
the tax year in which the qualifying renewable energy system
is placed into service or the tax year in which the qualifying
renewable energy system purchased, if the system is placed in
service by April 1 of the following tax year. Unused tax credit
may not be carried over. The tax credit was repealed in 2010.
G. MISCELLANEOUS.
44.05
Rhode Island state property tax exemption for
residential solar property
A. GENERAL DESCRIPTION.
Rhode Island provides a
property tax exemption in the amount of 100% of the tax on
residential solar property. R.I. Gen. Laws §44-57-4(a)(6).
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer owners of residential solar property.
C. QUALIFYING ACTIVITY.
Taxpayer must Qualifying
technologies include photovoltaic (PV) systems, solar hotwater systems and active solar space-heating systems.
D. INCENTIVE AMOUNTS.
The tax credit amount is
Residential solar-energy systems may not be assessed at more
than the value of a conventional heating system, a
conventional water-heating system or energy production
capacity that otherwise could be necessary to install in a
building.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME.
G. MISCELLANEOUS.
45.
South Carolina State Tax Incentives for Renewable
Energy and Green Building
45.01
South Carolina state income tax credit for solar
energy or small hydropower systems
A. GENERAL DESCRIPTION. South Carolina provides an
income tax credit in the amount of 25% the cost of solar
energy and 25% the cost of small hydropower systems. S.C.
Code Ann. §12-6-3587; South Carolina Information Letter 0916, 09/09/2009
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayers purchasing and installing a solar energy or small
hydropower system.
C. QUALIFYING ACTIVITY. Taxpayer must purchase and
install a solar energy or small hydropower system property.
Solar energy or small hydropower system must be used for
heating water, space heating, air cooling, energy-efficient
daylighting, heat reclamation, energy-efficient demand
response, or the generation of electricity in a building owned
by the taxpayer. Small hydropower system is new generation
capacity on a non-impoundment or on an existing
impoundment that: (1) meets licensing standards as defined by
the Federal Energy Regulatory Commission (FERC); (2) is a
run-of-the-river facility with a capacity not to exceed 5MW; or
(3) consists of a turbine in a pipeline or in an irrigation canal.
Solar energy or small hydropower system property includes all
controls, tanks, pumps, heat exchangers, and other equipment
used directly and exclusively for the solar-energy system.
System does not include any land or structural elements of the
building, such as walls and roofs, or other equipment
ordinarily contained in the structure.
A. GENERAL DESCRIPTION. South Carolina provides a
corporate income tax credit in the amount of 25% of the cost
of biomass energy systems. S.C. Code Ann. §12-6-3620.
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer corporations purchasing and installing biomass
energy systems.
C. QUALIFYING ACTIVITY. Taxpayer must purchase and
install a biomass energy system. Biomass energy systems are
equipment used to create heat, power, steam, electricity or
another form of energy for commercial use from a fuel
consisting of at least 90% biomass resources. A biomass
resource is noncommercial wood, by-products of wood
processing, demolition debris containing wood, agricultural
waste, animal waste, sewage, landfill gas, and other organic
materials, not including fossil fuels.
1.
Qualifying biomass wood resource does not include
wood intended for the purpose of generating a profit.
D. INCENTIVE AMOUNTS. The tax credit amount is 25% of
the cost of the biomass energy system.
1.
Cost of the biomass energy system must be certified
by the SC State Energy Office, in consultation with
the SC Department of Agriculture and the SC
Institute for Energy Studies.
E. INCENTIVE LIMITS. The maximum annual tax credit
amount is $650,000. The maximum annual tax credit allowed
to be claimed is 100% of Taxpayer's liability for that year.
Qualifying solar-thermal systems must be certified
by the Solar Rating and Certification Corporation or
a comparable entity endorsed by the SC Energy
Office.
F. INCENTIVE TIMEFRAME. Taxpayer must apply for the tax
credit by January 31st of the year following the 18-month
period in which the qualifying biomass energy system is
placed in service. The SC State Energy Office must award the
tax credit by March 1st of that year. Unused credits may be
carried forward 15 years.
D. INCENTIVE AMOUNTS. The tax credit amount is 25% of
the cost of solar energy system property and 25% of the cost
of small hydropower system property.
G. MISCELLANEOUS. The tax credit may be discontinued if
the equipment ceases to use biomass resources as its primary
fuel source before the entire tax credit has been utilized.
1.
E. INCENTIVE LIMITS. The maximum tax credit allowed to
be claimed is $3,500 for each facility or 50% of the taxpayer's
tax liability for that taxable year, whichever is less.
F. INCENTIVE TIMEFRAME. Unused tax credit may be carried
forward 10 years.
G. MISCELLANEOUS.
45.02
South Carolina state corporate income tax credit for
biomass energy systems
45.03
South Carolina state corporate income tax credit for
ethanol and biodiesel production facilities
A. GENERAL DESCRIPTION. South Carolina provides a
corporate income tax credit in the amount of $0.20-0.30 per
gallon of corn-based ethanol or soy-based biodiesel produced.
S.C. Code Ann. §12-6-3600(A)(1).
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer corporations owning corn-based ethanol or soybased biodiesel production facilities.
Taxpayers must be certified by the SC Energy
Office.
partners or members who may apply the tax credit
against individual income taxes.
C. QUALIFYING ACTIVITY. Taxpayer must own ethanol or
biodiesel production facilities. Ethanol facility is a plant or
facility primarily engaged in the production of ethanol or ethyl
alcohol derived from renewable and sustainable bioproducts
used as a substitute for gasoline fuel. Biodiesel facility is a
plant or facility primarily engaged in the production of plant
or animal-based fuels used as a substitute for diesel fuel.
C. QUALIFYING ACTIVITY. Taxpayer must incur qualifying
research expenditures for ethanol and biodiesel research.
Qualifying research expenditure include those to develop
feedstocks and processes for cellulosic ethanol and for algaederived biodiesel, such as enzymes and catalysts involving
cellulosic ethanol and algae-derived biodiesel; best and most
cost-efficient feedstocks for South Carolina; or product and
development, including cellulosic ethanol or algae-derived
biodiesel products. Qualifying research expenditure includes
expenditures related to waste grease-derived biodiesel.
Cellulosic ethanol is fuel from ligno-cellulosic materials,
including wood chips derived from noncommercial sources,
corn stover, and switchgrass.
1.
1.
Qualifying facility must be in production for at least
25% of its name plate design capacity
D. INCENTIVE AMOUNTS. The tax credit amount is $0.20 per
gallon of corn-based ethanol or soy-based biodiesel produced
and $0.30 per gallon of noncorn ethanol or nonsoy oil
biodiesel produced. After December 31, 2016 the tax credit
amount is $0.20 per gallon of corn-based ethanol or soy-based
biodiesel newly produced.
1.
New production is production that results from a
new facility, a facility that has not received credits
before 2017, or the expansion of the capacity of an
existing facility by at least 2 million gallons first
placed into service after 2016.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME. The tax credit period is 5 years.
Taxpayer must apply for the tax credit by January 31st of the
year following the 18-month period in which the qualifying
production facility is placed in service. The tax credit expires
December 31, 2016. Unused tax credit may be carried forward
10 years.
1.
Taxpayer may claim the tax credit for the first 6
months of qualifying production in addition to
qualifying production during its current taxable year.
G. MISCELLANEOUS.
45.04
South Carolina state income tax credit for ethanol and
biodiesel research
A. GENERAL DESCRIPTION. South Carolina provides an
income tax credit in the amount of 25% of expenditures for
ethanol and biodiesel research. S.C. Code Ann. §12-63631(A); H.B. 4478 (2010); PLR No. 11-6.
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer incurring qualifying research expenditures for
ethanol and biodiesel research.
1.
Taxpayer may be a pass-through entity and pass
through the tax credit to individual shareholders,
1.
Qualifying research expenditures must be certified
by the SC Energy Office.
D. INCENTIVE AMOUNTS. The tax credit amount is 25% of
qualifying research expenditures.
E. INCENTIVE LIMITS.
amount is $162,500.
The maximum annual tax credit
F. INCENTIVE TIMEFRAME. Taxpayer must apply for the tax
credit by January 31st of the year following the 18-month
period in which the qualifying production facility is placed in
service. The tax credit expires December 31, 2011. Unused
tax credit may be carried forward 5 years.
G. MISCELLANEOUS.
45.05
South Carolina state corporate income tax credit for
plug-in hybrid vehicles
A. GENERAL DESCRIPTION. South Carolina provides a
corporate income tax credit in the amount of $2,000 for the instate purchase or lease of plug-in hybrid vehicles. S.C. Code
Ann. §12-6-3376; H.B. 3059 (2012); New Plug-In Hybrid
Vehicle Credit Information, S.C. Dept of Rev., 08/06/2012..
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer corporations purchasing or leasing plug-in hybrid
vehicles.
C. QUALIFYING ACTIVITY. Taxpayer must purchase or lease
of a plug-in hybrid vehicle. A plug-in hybrid vehicle is a
vehicle that shares the same benefits as an internal combustion
and electric engine with an all-electric range of at least 9
miles, has four or more wheels, draws propulsion using a
traction battery, has at least four kilowatt hours of battery
capacity and uses an external source of energy to recharge the
battery.
D. INCENTIVE AMOUNTS. The tax credit amount is $667 for
a battery capacity of four kilowatt hours, with an additional
$111 for each additional kilowatt hour. The maximum tax
credit amount is $2,000 per plug-in hybrid vehicle.
E. INCENTIVE LIMITS. The statewide maximum annual tax
credit amount is $200,000.
F. INCENTIVE TIMEFRAME. The tax credit expires December
31, 2016. Unused tax credit may be carried forward 5 years.
F. INCENTIVE TIMEFRAME. The tax credit must be taken
over 3 years. The tax credit for processing must be taken over
7 years. Taxpayer must apply for the tax credit by January
31st of the year following the year in which the qualifying
property is placed in service. Unused tax credit may be
carried forward 10 years.
G. MISCELLANEOUS. The tax credit may be discontinued if
within the 3 year period the property is disposed of or taken
out of service and not replaced.
G. MISCELLANEOUS.
45.07
45.06
South Carolina state corporate income tax credit for
renewable fuel distribution, processing and dispensing
property
A. GENERAL DESCRIPTION. South Carolina provides a
corporate income tax credit over 3 years in the amount of 25%
of the cost of purchasing, constructing, or installing renewable
fuel distribution, processing and dispensing property. S.C.
Code Ann. §12-6-3610.
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer corporations placing in service in South Carolina
property for distributing, processing or dispensing renewable
fuel.
1.
Taxpayers must be approved by the SC Energy
Office.
C. QUALIFYING ACTIVITY.
Taxpayer must purchase,
construct and install and place in service property for
distributing, processing or dispensing renewable fuel.
Renewable fuel is E70 or greater ethanol fuel dispensed at the
retail level for use in motor vehicles and pure ethanol or
biodiesel fuel dispensed by a distributor or facility that blends
these nonpetroleum fuels with gasoline fuel or diesel fuel for
use in motor vehicles. Property for distributing or dispensing
renewable fuel includes pumps, storage tanks, and related
equipment that is directly and exclusively used for
distributing, dispensing, or storing renewable fuel.
1.
2.
Qualifying property for distributing or dispensing
renewable fuel must be labeled for this purpose and
clearly identified as associated with renewable fuel.
Qualifying property for processing renewable fuel
includes property used for intermediate steps such as
milling, crushing, and handling of feedstock, and the
distillation and manufacturing of the final product.
South Carolina state sales tax exemption for hydrogen
and fuel cell equipment
A. GENERAL DESCRIPTION. South Carolina provides a sales
tax exemption in the amount of 100% of the tax on hydrogen
and fuel cell equipment. S.C. Code Ann. §12-36-2120(71).
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer purchasers of hydrogen and fuel cell equipment.
C. QUALIFYING ACTIVITY.
Taxpayer must purchase
hydrogen and fuel cell equipment. Fuel cell is a device that
directly or indirectly creates electricity using hydrogen (or
hydrocarbon-rich fuel) and oxygen through an electrochemical process. Hydrogen and fuel cell equipment is any
device, equipment, or machinery: (1) operated by hydrogen or
fuel cells; (2) used to generate, produce, or distribute hydrogen
and designated specifically for hydrogen applications or for
fuel cell applications; or (3) used predominantly for the
manufacturing of, or research and development involving
hydrogen or fuel cell technologies.
D. INCENTIVE AMOUNTS.
100% of sales tax due.
The tax exemption amount is
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME.
G. MISCELLANEOUS.
45.08
South Carolina state personal income tax credit for
energy efficient manufactured homes
A. GENERAL DESCRIPTION. South Carolina provides a
personal income tax credit in the amount of $750 for energy
efficient manufactured homes. S.C. Code Ann. §48-52-870.
D. INCENTIVE AMOUNTS. The tax credit amount is 25% of
the cost of purchasing, constructing, or installing property for
distributing or dispensing renewable fuel.
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer
individuals
purchasing
energy
efficient
manufactured homes.
E. INCENTIVE LIMITS.
C. QUALIFYING ACTIVITY. Taxpayer must purchase an
energy efficient manufactured homes. An energy efficient
manufactured homes is: (1) a manufactured home designated
by the U.S. Environmental Protection Agency and the U.S.
Department of Energy as meeting or exceeding each agency's
energy saving efficiency requirements; or (2) a manufactured
home that has been designated as meeting or exceeding energy
efficiency requirements under the ENERGY STAR program.
1.
2.
Qualifying energy efficient manufactured homes
must be purchase from a retail dealership licensed
by the SC Manufactured Housing Board.
Qualifying energy efficient manufactured homes
must be used in South Carolina.
D. INCENTIVE AMOUNTS. The tax credit amount is $750 per
manufactured home.
E. INCENTIVE LIMITS.
G. MISCELLANEOUS.
South Carolina state sales tax exemption for energy
efficient manufactured homes
A. GENERAL DESCRIPTION. South Carolina provides a sales
tax exemption in the amount of 100% of the tax on energy
efficient manufactured homes. S.C. Code Ann. §12-36-2110.
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer purchasers of energy efficient manufactured homes.
C. QUALIFYING ACTIVITY.
Taxpayer must purchase
manufactured homes meeting energy efficiency standards.
Efficiency standards are storm or double-pane glass windows,
insulated or storm doors, and a minimum thermal resistance
rating of the insulation of R-11 for walls, R-19 for floors, and
R-30 for ceilings.
1.
Qualifying efficiency standards include variations of
the above if the total heat loss for the home does not
exceed that calculated using the ASHRAE levels of
R-11 for walls, R-19 for floors, and R-30 for
ceilings.
D. INCENTIVE AMOUNTS.
100% of the sales tax due.
South Carolina state corporate income tax credit for
plant and equipment for renewable energy
manufacturing operations
A. GENERAL DESCRIPTION. South Carolina provides a
corporate income tax credit in the amount of 10% of the
qualifying investments in plant and equipment for renewable
energy manufacturing operations. S.C. Code Ann. §12-63588; H.B. 4478 (2010).
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer corporations placing in service plant and equipment
for renewable energy manufacturing operations.
1.
F. INCENTIVE TIMEFRAME. The tax credit expires July 1,
2019.
45.09
45.10
The tax exemption amount is
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME. The tax exemption expires July
1, 2019
G. MISCELLANEOUS. The dealer selling the manufactured
home must maintain records for 3 years on each manufactured
home sold that meets the energy efficiency levels.
Taxpayers must be approved by the SC Energy
Office.
C. QUALIFYING ACTIVITY.
Taxpayer must purchase,
construct and install and place in service plant and equipment
for renewable energy manufacturing operations. Renewable
energy manufacturing operations are manufacturers of systems
and components that are used or useful in manufacturing
renewable energy equipment for the generation, storage,
testing and research and development, and transmission or
distribution of electricity from renewable sources, including
specialized packaging for the renewable energy equipment
manufactured at the facility.
1.
2.
3.
4.
Renewable energy systems are solar, wind,
geothermal, or other renewable energy uses.
Renewable energy manufacturing operation must
invest at least $500 million in new qualifying plant
and equipment.
Renewable energy manufacturing operation must
create 1.5 full-time jobs that pay at least 125% of the
state average annual median wage for every
$500,000 of capital investment.
Manufacturing is fabricating, producing, or
manufacturing raw or unprepared materials into
usable products, imparting new forms, qualities,
properties, and combinations. Manufacturing does
not include generating electricity for off-site
consumption.
D. INCENTIVE AMOUNTS. The tax credit amount is 25% of
the cost of purchasing, constructing, or installing property for
distributing or dispensing renewable fuel.
E. INCENTIVE LIMITS. The annual maximum tax credit
amount is $500,000. The aggregate maximum tax credit
amount is $5 million.
F. INCENTIVE TIMEFRAME. Unused tax credits may be
carried forward 15 years. The tax credit expires December 31,
2015. The tax credit is not refundable.
G. MISCELLANEOUS.
45.11
South Carolina state corporate income tax credit for
alternative motor vehicles
A. GENERAL DESCRIPTION. South Carolina provides a
corporate income tax credit in the amount of 20% of the
federal credit allowed pursuant to IRC §30B for alternative
motor vehicles. S.C. Code Ann. §12-6-3377.
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer who is eligible for and claims the new qualified fuel
cell motor vehicle credit, the new advanced lean burn
technology motor vehicle credit, the new qualified hybrid
motor vehicle credit based on the combined city/highway
metric or standard set by federal Internal Revenue Code
Section 30B, and the new qualified alternative fuel motor
vehicle credit allowed pursuant to Internal Revenue Code
Section 30B.
C. QUALIFYING ACTIVITY. Taxpayer must be eligible for
and claim the new qualified fuel cell motor vehicle credit, the
new advanced lean burn technology motor vehicle credit, the
new qualified hybrid motor vehicle credit based on the
combined city/highway metric or standard set by federal
Internal Revenue Code Section 30B, or the new qualified
alternative fuel motor vehicle credit allowed pursuant to
Internal Revenue Code Section 30B.
D. INCENTIVE AMOUNTS. The tax credit amount is 20% of
the federal credit allowed pursuant to IRC §30B for alternative
motor vehicles.
1.
The tax credit amount is calculated without regard to
the phaseout period limits of Internal Revenue Code
Section 30(B)(f). The provisions of Internal
Revenue Code Section 30(B) are deemed permanent
law.
E. INCENTIVE LIMITS. The tax credit is not refundable.
F. INCENTIVE TIMEFRAME. Unused tax credit may be carried
forward 5 years.
G. MISCELLANEOUS.
47.
Tennessee State Tax Incentives for Renewable Energy
and Green Building
D. INCENTIVE AMOUNTS. The tax credit amount is 99.5% of
sales or use taxes paid.
47.01
Tennessee state sales and use tax credit for
manufacturers of clean energy technologies
E. INCENTIVE LIMITS. The maximum tax credit allowed to
be claimed is the excess of the tax due and the minimum state
sales or use taxes due on the rate of 0.5%.
A. GENERAL DESCRIPTION. Tennessee provides a sales and
use tax credit in the amount of 99.5% of tax on manufacturers
of clean energy technologies. Tenn. Code Ann. §67-6-232;
S.B. 2300.
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer manufacturers of clean energy technologies
purchasing property.
1.
2.
3.
Taxpayer must make a minimum $100 million
investment, create and maintain 50 full-time jobs for
10 years that pay 150% above the Tennessee
occupational average wage.
Taxpayer must be certified by the TN Department of
Revenue and the TN Department of Economic and
Community Development.
Taxpayer may not be a business engaged in the
development and construction of coal fired power
plants.
C. QUALIFYING ACTIVITY. Taxpayer must manufacture
clean energy technologies and purchase qualifying property.
Clean energy technology is technology resulting in energy
efficiency, technology used to generate energy from biomass,
geothermal, hydrogen, hydropower, landfill gas, nuclear,
solar, and wind sources, and technology that is designed to
result in the development of advanced coal through carbon
capture and sequestration or otherwise any other manner that
significantly reduces CO2 emissions per unit of energy
generated. Qualifying property includes building materials,
machinery, and equipment used in the qualifying facility and
purchased (or leased) during the investment period.
1.
2.
3.
Taxpayer must establishing qualifying clean energy
technology facilities meeting a minimum
investment. Qualifying minimum investment is
$100 million or more in a building or buildings,
either newly constructed, expanded, or remodeled
along with the creation of not less than 50 full-time
employee positions created primarily for the support
of the operations at the qualifying facility during the
investment period with average wages or salaries
equal to or greater than 150% of Tennessee's
average occupational wage.
Qualifying tangible personal property does not
include any payments with respect to leases of
qualifying tangible personal property that extend
beyond the investment period.
Qualifying tangible personal property does not
include any materials, machinery, or equipment that
replaces tangible personal property that previously
generated tax credit.
F. INCENTIVE TIMEFRAME.
period is 8 years.
The maximum investment
G. MISCELLANEOUS. The tax credit may be recaptured if the
qualifying facility does not maintain at least 50 qualifying fulltime employee positions, or is not utilized to support an
emerging industry for a period of 10 years.
47.02
Tennessee state franchise and excise tax credit for
green energy supply chain manufacturers
A. GENERAL DESCRIPTION. Tennessee provides a franchise
or excise tax credit in the amount by which the charge for
electricity sold to a manufacturer exceeds the charge that
would have been made for such total delivered electricity if
the maximum certified rate had been applied. Tenn. Code
Ann. §67-4-2109(n);
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer corporations certified as a green energy supply chain
manufacturer.
1.
2.
A certified green energy supply chain manufacturer
is any manufacturer that has made, during the
investment period, a required capital investment in
excess of $250 million in constructing, expanding,
or remodeling a facility that is certified by the TN
Commissioner of Revenue, the TN Commissioner of
Economic and Community Development, and the
TN
Commissioner
of
Environment
and
Conservation, in their sole discretion, to be a facility
engaged in manufacturing a product that is
necessary for the production of green energy.
A certified green energy supply chain manufacturer
includes campus affiliates, integrated customers and
integrated suppliers of the green energy
manufacturer.
C. QUALIFYING ACTIVITY. Taxpayer must investing in
constructing, expanding, or remodeling a facility engaged in
manufacturing a product that is necessary for the production of
green energy.
D. INCENTIVE AMOUNTS. The tax credit amount is the 100%
of the amount by which the charge for electricity sold to the
manufacturer exceeds the charge that would have been made
for such total delivered electricity if the maximum certified
rate had been applied during the applicable tax year.
1.
Qualifying manufacturers are also allowed a carbon
charge credit against franchise and excise tax equal
to any carbon charges incurred by or imposed
directly on the certified green energy supply chain
manufacturer or imposed on the TN Valley
Authority or other applicable energy provider and
billed to the certified green energy supply chain
manufacturer during the applicable tax year.
E. INCENTIVE LIMITS. The tax credit may be refunded up to
$1.5 million for each $250 million in cumulative capital
investments made.
F. INCENTIVE TIMEFRAME. Taxpayer must make a claim for
refund within 3 years from December 31 of the year in which
the tax credit was incurred. The tax credit expires December
31, 2028. Unused tax credit may be carried forward.
G. MISCELLANEOUS.
47.03
Tennessee state property tax exemption for green
energy production facilities
A. GENERAL DESCRIPTION. Tennessee provides a property
tax exemption in the amount of 67% of the tax on green
energy production facilities. Tenn. Code Ann. §67-5-601;
Tenn. Code Ann. §67-4-2004; S.B.1000 (2013) .
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer public utilities, businesses or industrial facilities
owning green energy production facilities.
C. QUALIFYING ACTIVITY. Taxpayer must own commercial
and industrial property, or public utility property, that is a
green energy production facility. A green energy production
facility is a facility certified by the TN Department of
Environment and Conservation as producing electricity for use
and consumption off the premises using clean energy
technology. Clean energy technology is technology used to
generate energy from geothermal, hydrogen, solar, and wind
sources.
D. INCENTIVE AMOUNTS. The tax exemption amount is 67%
of the property tax due.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME.
G. MISCELLANEOUS.
50.
Vermont State Tax Incentives for Renewable Energy
and Green Building
50.01
Vermont state property tax exemption for alternate
energy source systems
A. GENERAL DESCRIPTION. Vermont provides a property tax
exemption in the amount of 100% of the tax on alternate
energy source systems. Vt. Stat. Ann. 32 §3845.
hydroelectric, geothermal-electric, anaerobic digestion and
fuel cells using renewable fuels.
1.
Qualifying energy-efficiency projects must be
certified by Efficiency Vermont.
D. INCENTIVE AMOUNTS. The tax financing amount varies
by local jurisdiction.
E. INCENTIVE LIMITS.
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer owners of alternate energy source system property.
C. QUALIFYING ACTIVITY. Taxpayer must own alternate
energy sources system property. Alternate energy sources
system property includes any plant, structure or facility used
for the generation of electricity or production of energy used
on the premises for private, domestic, or agricultural purposes.
Alternate energy sources systems include windmills, facilities
for the collection of solar energy or the conversion of organic
matter to methane, and net-metered systems.
1.
2.
Qualifying alternate energy sources system property
does not include any property for sale or exchange
to the public.
Qualifying alternate energy sources includes all
component parts and land upon which a facility is
located, not to exceed 1/2 acre.
D. INCENTIVE AMOUNTS. The tax exemption is 100% of the
property tax due.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME.
F. INCENTIVE TIMEFRAME.
G. MISCELLANEOUS.
50.03
Vermont state sales tax exemption for renewableenergy systems
A. GENERAL DESCRIPTION. Vermont provides a sales tax
exemption in the amount of 100% of the tax on renewableenergy systems. Vt. Stat. Ann. 32 §9741(46).
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer purchasers of renewable-energy systems.
C. QUALIFYING ACTIVITY.
Taxpayer must purchase
renewable-energy systems.
Renewable-energy systems
include: (1) systems which generate electricity using eligible
renewable energy resources up to 250 kW in capacity; (2)
micro-combined heat and power systems up to 20 kW in
capacity; and (3) solar water-heating systems. Renewable
energy is energy produced using a technology that relies on a
renewable energy resource that is being consumed at a harvest
rate at or below its natural regeneration rate.
G. MISCELLANEOUS.
1.
50.02
Vermont state property tax financing for clean energy
assessment districts
A. GENERAL DESCRIPTION. Vermont provides a property tax
financing option for municipalities for clean energy
assessment districts. H.B. 446 (2009).
B. ELIGIBLE TAXPAYERS. The tax financing is available to
Taxpayer owners of clean energy property.
1.
Taxpayer must conduct an energy audit to quantify
project costs, energy savings and carbon impacts.
C. QUALIFYING ACTIVITY. Taxpayer must own and finance
clean energy property. Clean energy property are projects
incorporating energy efficiency and renewable-energy
technologies. Renewable-energy technologies include solar
water heating, photovoltaics (PV), landfill gas, wind, biomass,
2.
3.
4.
5.
6.
Qualifying renewable energy resource includes
methane gas and other flammable gases produced by
the decay of sewage treatment plant wastes or
landfill wastes and anaerobic digestion of
agricultural products, byproducts, or wastes.
Qualifying renewable energy resource does not
include solid waste.
Qualifying renewable energy resource does include
agricultural or silvicultural waste.
Qualifying renewable energy resource does not
include nuclear fuel.
Qualifying renewable energy resource does not
include hydroelectric facility with a generating
capacity of greater than 200 megawatts.
Qualifying renewable energy resource does not
include coal, oil, propane, and natural gas.
D. INCENTIVE AMOUNTS.
100% of the sales tax due.
E. INCENTIVE LIMITS.
The tax exemption amount is
F. INCENTIVE TIMEFRAME.
G. MISCELLANEOUS.
50.04
Vermont state income tax credit for solar energy
equipment on business properties
A. GENERAL DESCRIPTION. Vermont provides an income tax
credit in the amount of 30% of the cost of solar energy
equipment on business properties. Vt. Stat. Ann. 32 §5930z;
Vt. Stat. Ann. 32 §5822; H. 313 (2009); TB – 45 (7/14/2009);
H.B. 781 (2010); H.B. 56 (2011).
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayers installing solar energy equipment on business
properties.
1.
Taxpayer may not receive any grants or similar
funding from the VT Clean Energy Development
Fund.
C. QUALIFYING ACTIVITY. Taxpayer must install of solar
energy equipment on business properties. Solar energy
equipment is equipment that uses solar energy to generate
electricity, to heat or cool (or provide hot water for use in) a
structure, or to provide solar process heat.
D. INCENTIVE AMOUNTS. The tax credit amount is 30% of
the cost of systems and equipment until December 31, 2011,
and 7.2% of the cost of systems and equipment until
December 31, 2016.
1.
Qualifying costs of systems and equipment does not
include grants or similar funding from any public or
private program that assists in providing capital
investment for a renewable energy project, including
subsidized energy financing or tax-exempt private
activity bonds.
E. INCENTIVE LIMITS. The maximum annual statewide tax
credit amount is $9.4 million.
F. INCENTIVE TIMEFRAME. The tax credit expires December
31, 2016. Unused tax credit may be carried forward 5 years.
G. MISCELLANEOUS. The tax credit may be recaptured if the
federal tax credit is recaptured. Taxpayers may not receive
Vermont's Clean Energy Development Fund financing.
1.
The amount of the grant-in-lieu-of-credit is either 50
percent of the credit amount certified by the Clean
Energy Development Board or 15 percent of the
solar energy plant's actual costs, whichever is less.
Taxpayer must submit a request by Aug. 1, 2011, to
the board.
51.
51.01
Virginia State Tax Incentives for Renewable Energy
and Green Building
E. INCENTIVE LIMITS.
Virginia state property tax financing option for clean
energy assessment districts
F. INCENTIVE TIMEFRAME. The tax exemption period is 5
years.
A. GENERAL DESCRIPTION. Virginia provides a property tax
financing option for municipalities for clean energy
assessment districts. Va. Code Ann. §15.2-958.3.
G. MISCELLANEOUS.
51.03
B. ELIGIBLE TAXPAYERS. The tax financing is available to
Taxpayers acquiring or installing clean energy improvements,
distributed generation renewable energy sources or energy
efficiency improvements.
C. QUALIFYING ACTIVITY. Taxpayer must acquire, install
and finance clean energy improvements, distributed generation
renewable energy sources or energy efficiency improvements.
D. INCENTIVE AMOUNTS. The tax financing option amounts
varies by local jurisdiction.
Virginia state income tax credit for biodiesel and
green diesel production
A. GENERAL DESCRIPTION. Virginia provides an income tax
credit in the amount of $0.01 per gallon of biodiesel and green
diesel produced. Va. Code Ann. §58.1-439.12:02; Virginia
Ruling of the Commissioner PD 09-21.
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer producers of biodiesel and green diesel.
1.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME.
2.
Taxpayer partners, shareholders, or members of a
pass-through entity are allocated the tax credit in
proportion to their ownership or interest in the
business entity.
Taxpayer may transfer unused tax credit to 3rd
parties.
G. MISCELLANEOUS.
51.02
Virginia state property tax exemption for solar energy
property
A. GENERAL DESCRIPTION. Virginia provides a property tax
exemption in the amount of 100% of the tax on solar energy
property. Va. Code Ann. §58.1-3661.
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer owners of solar energy equipment or recycling
equipment incorporated into residential, commercial or
industrial property.
1.
Taxpayer must be certified by the local building
department.
C. QUALIFYING ACTIVITY. Taxpayer must own solar energy
equipment or recycling equipment incorporated into
residential, commercial or industrial property. Solar energy
equipment is equipment which is designed and used primarily
for the purpose of providing for the collection and use of
incident solar energy for water heating, space heating or
cooling or other application which would otherwise require a
conventional source of energy. Recycling equipment is
equipment which is integral to the recycling process and for
use primarily for the purpose of abating or preventing
pollution of the atmosphere or waters.
D. INCENTIVE AMOUNTS. The tax exemption amount is
100% of the property tax due.
C. QUALIFYING ACTIVITY. Taxpayer must produce biodiesel
or green diesel fuels. Biodiesel fuel is fuel composed of
mono-alkyl esters of long-chain fatty acids derived from
vegetable oils or animal fats, designated B100, and meeting
the requirements of ASTM D6751. Green diesel fuel is fuel
produced from nonfossil renewable resources including
agricultural or silvicultural plants, animal fats, residue and
waste generated from the production, processing, and
marketing of agricultural products, silvicultural products, and
other renewable resources, and meeting applicable ASTM
specifications.
1.
2.
Taxpayer must produce in Virginia 2 million gallons
of biodiesel or green diesel fuels using feedstock
originating domestically within the United States.
Feedstock is the agricultural or other renewable
resources, whether plant or animal derived, used to
produce biodiesel or green diesel fuels.
D. INCENTIVE AMOUNTS. The tax credit amount is $0.01 per
gallon of biodiesel and green diesel produced during the first 3
years of production.
E. INCENTIVE LIMITS.
amount is $5,000.
The maximum annual tax credit
F. INCENTIVE TIMEFRAME. The tax credit period is first 3
years of production. Unused tax credit may be carried forward
3 years.
G. MISCELLANEOUS.
51.04
Virginia state corporate income tax credit for cleanfuel vehicle and refueling property
A. GENERAL DESCRIPTION. Virginia provides a corporate
income tax credit in the amount of 10% of the deduction
allowed under IRC §179A and 10% the costs used to compute
the IRC §30 federal credit for electric vehicles. Va. Code Ann.
§58.1-438.1.
manufacture of components uniquely used to convert vehicles
designed to operate on gasoline or diesel fuel to operate on
clean special fuels or advanced biofuels; the conversion of
vehicles designed to operate on gasoline or diesel fuel to
operate on clean special fuels or advanced biofuels; the
manufacture of vehicles designed to operate on clean special
fuels; the manufacture of components designed to produce,
store, and dispense clean special fuels or advanced biofuels; or
the production of advanced biofuels.
1.
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer corporations purchasing clean-fuel vehicles, cleanfuel refueling property and electric vehicles.
1.
2.
Tax credits granted to a partnership or S corporation
may be passed through to the partners or
shareholders.
C. QUALIFYING ACTIVITY. Taxpayer must purchase cleanfuel vehicles, clean-fuel refueling property or electric vehicles.
D. INCENTIVE AMOUNTS. The tax credit amount is 10% of
the deduction allowed under IRC §179A and 10% the costs
used to compute the IRC §30 federal credit for electric
vehicles.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME. Unused tax credit can be carried
forward 5 years.
G. MISCELLANEOUS.
D. INCENTIVE AMOUNTS. The tax credit amount is $700 for
each clean fuel vehicle job created.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME. The tax credit period is 3 years.
Unused tax credit may be carried forward 5 years.
G. MISCELLANEOUS.
51.06
51.05
Virginia state corporate income tax credit for clean
fuel vehicle job creation
A. GENERAL DESCRIPTION. Virginia provides a corporate
income tax credit in the amount of $700 for each clean fuel
vehicle job created by manufacturers. Va. Code Ann. §58.1439.1.
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer corporations creating clean fuel vehicle jobs.
1.
2.
Taxpayer may not qualify for the major business
facility job tax credit.
Taxpayer corporate partners or corporate members
of pass-through entities must be allocated the tax
credit in proportion to their ownership or interest in
the pass-through entity.
C. QUALIFYING ACTIVITY. Taxpayer must create clean fuel
vehicle jobs. Clean fuel vehicle job are jobs in: the
manufacture of the major components of the energy storage,
energy supply or engine, motor, and power train mechanisms
unique to a vehicle fueled by clean special fuels; the
Advanced biofuel is fuel derived from any cellulose,
hemicellulose, or lignin that is derived from
renewable biomass or algae.
Clean special fuel is any product or energy source
used to propel a highway vehicle, the use of which,
compared to conventional gasoline or reformulated
gasoline, results in lower emissions of oxides of
nitrogen, volatile organic compounds, carbon
monoxide or particulates or any combination
thereof, and includes compressed natural gas,
liquefied natural gas, liquefied petroleum gas,
hydrogen, hythane (a combination of compressed
natural gas and hydrogen), or electricity.
Virginia state property tax assessment for energy
efficient buildings
A. GENERAL DESCRIPTION. Virginia provides a property tax
assessment in various amount of the tax on energy efficient
buildings. Va. Code Ann. §58.1-3221.2.
B. ELIGIBLE TAXPAYERS. The tax assessment is available to
Taxpayer owners of energy efficient buildings.
1.
Energy-efficient building certification is determined
by (a) the granting of a certification under one of the
programs that certifies the building meets or exceeds
the performance standards or guidelines of the
program, or (b) a qualifying architect or professional
engineer designated by the county, city, or town who
shall determine whether the building meets or
exceeds the performance standards or guidelines
under any program described.
C. QUALIFYING ACTIVITY. Taxpayer must own an energyefficient building. An energy-efficient building is any
building that exceeds the energy efficiency standards of the
Virginia Uniform Statewide Building Code by 30%; meets
performance standards of the Green Globes Green Building
Rating System, the Leadership in Energy and Environmental
Design (LEED) System or the EarthCraft House Program; or
qualifies as an Energy Star home under federal Energy Star
criteria.
1.
2.
Qualifying energy-efficient buildings do not include
the real estate or land on which it is located.
Qualifying energy-efficient buildings must be
located in a city or county embraced by the Northern
Virginia Transportation Authority or the Hampton
Roads Transportation Authority.
D. INCENTIVE AMOUNTS. The tax assessment amount of
property tax due varies by local jurisdiction.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME.
G. MISCELLANEOUS.
51.07
Virginia state sales tax exemption for energy-efficient
products
A. GENERAL DESCRIPTION. Virginia provides a sales tax
exemption in the amount of 100% of the tax on energyefficient products. Va. Code Ann. §58.1-609.1; Ruling 09-137;
Ruling 12-154.
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer purchasers of Energy Star or WaterSense appliances
C. QUALIFYING ACTIVITY. Taxpayer must purchase Energy
Star or WaterSense dishwashers, clothes washers, air
conditioners, ceiling fans, compact fluorescent light bulbs,
dehumidifiers, programmable thermostats or refrigerators with
a sales price of $2,500 or less per product purchased for
noncommercial home or personal use.
D. INCENTIVE AMOUNTS. The tax exemption is 100% of
sales tax due.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME. The tax exemption period is the
4-day period that begins each year on the Friday before the
second Monday in October and ends at midnight on the
second Monday in October. The tax exemption expires July 1,
2012.
G. MISCELLANEOUS.
51.08
Virginia state income tax deduction for sales and use
tax paid on energy conservation personal property
A. GENERAL DESCRIPTION. Virginia provides an income tax
deduction in the amount of 20% the sales and use tax paid on
energy conservation personal property. Va. Code Ann. §58.1322(D)(12).
B. ELIGIBLE TAXPAYERS. The tax deduction is available to
Taxpayer purchasers of energy conservation personal
property.
C. QUALIFYING ACTIVITY. Taxpayer must purchase energy
conservation personal property.
Energy conservation
personal property which includes: (i) any clothes washers,
room air conditioners, dishwashers, and standard size
refrigerators that meet or exceed the applicable energy star
efficiency requirements developed by the United States
Environmental Protection Agency and the United States
Department of Energy; (ii) any fuel cell that (a) generates
electricity using an electrochemical process, (b) has an
electricity-only generation efficiency greater than 35%, and
(c) has a generating capacity of at least two kilowatts; (iii) any
gas heat pump that has a coefficient of performance of at least
1.25 for heating and at least 0.70 for cooling; (iv) any electric
heat pump hot water heater that yields an energy factor of at
least 1.7; (v) any electric heat pump that has a heating system
performance factor of at least 8.0 and a cooling seasonal
energy efficiency ratio of at least 13.0; (vi) any central air
conditioner that has a cooling seasonal energy efficiency ratio
of at least 13.5; (vii) any advanced gas or oil water heater that
has an energy factor of at least 0.65; (viii) any advanced oilfired boiler with a minimum annual fuel-utilization rating of
85; (ix) any advanced oil-fired furnace with a minimum
annual fuel-utilization rating of 85; and (x) programmable
thermostats.
D. INCENTIVE AMOUNTS. The tax deduction amount is 20%
of the sales and use tax due.
E. INCENTIVE LIMITS. The maximum annual tax deduction
amount is $500.
F. INCENTIVE TIMEFRAME.
G. MISCELLANEOUS.
51.09
Virginia state property tax assessment for renewable
energy manufacturing
A. GENERAL DESCRIPTION. Virginia provides a property tax
assessment in various amounts on real property improvements
and tangible personal property used for manufacturing
products from renewable energy. Va. Code Ann. §58.13221.4; Va. Code Ann. §56-576; S.B. 656 (2010).
B. ELIGIBLE TAXPAYERS. The tax assessment is available to
Taxpayer manufacturers using renewable energy.
C. QUALIFYING ACTIVITY.
Taxpayer must own
manufacturing property using renewable energy. Renewable
energy is energy derived from sunlight, wind, falling water,
biomass, sustainable or otherwise, (the definitions of which
shall be liberally construed), energy from waste, municipal
solid waste, wave motion, tides, geothermal power, and the
proportion of the thermal or electric energy from a facility that
results from the co-firing of biomass.
1.
Renewable energy does not include energy derived
from coal, oil, natural gas or nuclear power.
D. INCENTIVE AMOUNTS. The tax assessment amount of
property tax due varies by local jurisdiction.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME.
G. MISCELLANEOUS.
51.10
Virginia state income tax credit for green job creation
A. GENERAL DESCRIPTION. Virginia provides an income tax
credit in the amount of $500 for each new green job created.
Va. Code Ann. §58.1-439.12:03; S.B. 623 (2010).
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer employers in green job industries.
C. QUALIFYING ACTIVITY. Taxpayer must create a green job
with an annual salary that is $50,000 or more. A green job is
employment in industries relating to the field of renewable,
alternative energies, including the manufacture and operation
of products used to generate electricity and other forms of
energy from alternative sources that include hydrogen and fuel
cell technology, landfill gas, geothermal heating systems, solar
heating systems, hydropower systems, wind systems, and
biomass and biofuel systems.
1.
Qualifying green jobs must be certified by the VA
Secretary of Commerce and Trade.
D. INCENTIVE AMOUNTS. The tax credit amount is $500 per
green job created.
E. INCENTIVE LIMITS.
amount is $175,000.
The maximum annual tax credit
F. INCENTIVE TIMEFRAME. The tax credit period is 5 years,
provided the green job is continuously filled throughout the
period. Unused tax credit may be carried forward 5 years. The
tax credit expires December 31, 2014.
G. MISCELLANEOUS. Taxpayer will not be allowed a green
job creation tax credit for any green job for which Taxpayer is
allowed: (1) a major business facility job tax credit pursuant to
Va. Code Ann. §58.1-439 , or (2) a federal tax credit for
investments in manufacturing facilities for clean energy
technologies that would foster investment and job creation in
clean energy manufacturing.
West Virginia State Tax Incentives for Renewable
Energy and Green Building
54.
54.01
West Virginia state business and operation tax
abatement for wind energy generation
A. GENERAL DESCRIPTION.
West Virginia provides a
business and operation tax abatement in the amount 70% of
the value on wind energy generation. W. Va. Code §11-13-2o.
B. ELIGIBLE TAXPAYERS. The tax abatement is available to
Taxpayer owners of wind energy generation electricity
production facilities.
C. QUALIFYING ACTIVITY. Taxpayer must generate, produce
or sell electricity produced utilizing a turbine powered
primarily by wind.
D. INCENTIVE AMOUNTS. The tax abatement amount is 70%
of the tax due.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME.
F. INCENTIVE TIMEFRAME.
G. MISCELLANEOUS.
54.03
West Virginia state sales tax exemption for energyefficient products
A. GENERAL DESCRIPTION. West Virginia provides a sales
tax exemption in the amount of 100% of tax on energyefficient products. W. Va. Code §11-15-9k(a)(1)(A); W. Va.
Code §11-15-9k(a)(2)(A); WV Streamlined Sales and Use Tax
Taxability Matrix, 09/24/2009.
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer purchasers of Energy Star products.
C. QUALIFYING ACTIVITY.
Taxpayer must purchasing
Energy Star qualifying products for home or personal use, of
$5,000 or less. Energy Star qualifying products are products
that meets the energy efficient guidelines set by the United
States Environmental Protection Agency and the United States
Department of Energy that are authorized to carry the Energy
Star label.
G. MISCELLANEOUS.
1.
54.02
West Virginia state property tax assessment for wind
energy systems
A. GENERAL DESCRIPTION.
West Virginia provides a
property tax assessment in the amount of 25% of the value of
qualifying property of wind energy systems. W. Va. Code §116A-5a.
B. ELIGIBLE TAXPAYERS. The tax assessment is available to
Taxpayer utilities that own qualifying property of wind energy
systems.
C. QUALIFYING ACTIVITY. Taxpayer must own qualifying
property of wind energy systems. A wind energy system is a
power project designed, constructed or installed to convert
wind into electrical energy. Qualifying property includes the
wind turbine and tower and is limited to: the rotor, consisting
of the blades and the supporting hub; the drive train, which
includes the remaining rotating parts such as the shafts,
gearbox, coupling, a mechanical brake and the generator; the
nacelle and main frame, including the wind turbine housing,
bedplate and the yaw system; the turbine transformer; the
machine controls; the tower; and the tower foundation.
D. INCENTIVE AMOUNTS. The tax assessment amount is
24.95% of the effective tax rate on most other types of newly
constructed electricity-generating units.
E. INCENTIVE LIMITS.
Energy Star qualifying products does not include
shipping or installation charges associated the
appliance.
D. INCENTIVE AMOUNTS. The tax exemption amount is
100% of the 6% sales tax due.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME. The tax exemption period is
September through November in 2009 and 2010.
G. MISCELLANEOUS.
54.04
West Virginia state personal income tax credit for
residential solar energy installations
A. GENERAL DESCRIPTION.
West Virginia provides a
personal income tax credit in the amount of 30% of the cost of
residential solar energy installations. HB 2535 (2009).
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer individuals installing residential solar energy
systems.
C. QUALIFYING ACTIVITY. Taxpayer must install residential
solar energy installations.
Residential solar energy
installations include systems that use solar energy to generate
electricity, heat or cool a residence, or provide hot water or
solar process heat for use in the residence.
1.
2.
Qualifying systems installed to provide hot water
must derive 50% or more of its energy to heat or
cool from the sun.
Qualifying storage mediums do not include
swimming pools, hot tubs or any other energy
storage medium that has a function other than
storage.
D. INCENTIVE AMOUNTS. The tax credit amount is 30% of
the cost to purchase and install the residential solar energy
installations.
E. INCENTIVE LIMITS. The maximum tax credit amount is
$2,000.
F. INCENTIVE TIMEFRAME. The tax credit expires July 1,
2013. Unused tax credit may be carried forward.
G. MISCELLANEOUS.
54.05
West Virginia state income tax credit for alternative
fuel vehicles and refueling infrastructure
A. GENERAL DESCRIPTION. West Virginia provides an
income tax credit in the amount ranging from $7,500 $25,000 per alternative fuel vehicle and 50 - 62.5% of the cost
of alternative fuel refueling infrastructure. W. Va. Code §116d-1 et seq.; S.B. 465 (2011); S.B. 185 (2013).
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer purchasing or converting to alternative fuel vehicles
and construction or purchase and installation of alternative
fuel refueling infrastructure.
1.
2.
Taxpayer may be any natural person, corporation,
limited liability company or partnership.
When the taxpayer is a pass-through entity treated
like a partnership for federal and state income tax
purposes, the credit allowed under this article for the
year shall flow through to the equity owners of the
pass-through entity in the same manner that
distributive share flows through to the equity owners
and in accordance with any legislative rule the Tax
Commissioner may propose.
C. QUALIFYING ACTIVITY. Taxpayer must purchasing or
converting to alternative fuel vehicles or construction or
purchase and installation of alternative fuel refueling
infrastructure. Alternative-fuel motor vehicle is a motor
vehicle that as a new or retrofitted or converted fuel vehicle:
(1) Operates solely on one alternative fuel; (2) Is capable of
operating on one or more alternative fuels, singly or in
combination; or (3) Is capable of operating on an alternative
fuel and is also capable of operating on gasoline or diesel fuel.
Qualified alternative fuel vehicle refueling infrastructure is
commercial property owned by the applicant for the tax credit
and used for storing alternative fuels and for dispensing such
alternative fuels into fuel tanks of motor vehicles, including
but not limited to, compression equipment, storage tanks and
dispensing units for alternative fuel at the point where the fuel
is delivered. . Alternative fuel includes: (1) Compressed
natural gas; (2) Liquefied natural gas; and (3) Liquefied
petroleum gas.
D. INCENTIVE AMOUNTS. The tax credit amount is 35% of
the purchase price of or 50% of the cost of conversion to an
alternative fuel vehicle weighing less than 26,000 pounds, up
to a maximum amount of $7,500, and up to a maximum
amount of $25,000 for vehicles weighing more than 26,000
pounds. The tax credit amount is 20% of the cost of
construction or purchase and installation of alternative fuel
refueling infrastructure.
1.
Qualified costs do not include costs associated with
exploration, development or production activities
necessary for severing natural resources from the
soil or ground.
E. INCENTIVE LIMITS. The maximum tax credit amount for
alternative fuel refueling infrastructure is $400,000.
F. INCENTIVE TIMEFRAME. The tax credit for alternative fuel
vehicles and alternative fuel refueling infrastructure expires
December 31, 2017. Unused tax credit for alternative fuel
vehicles may be carried forward for 4 years. Unused tax credit
for alternative fuel infrastructure may be carried forward.
G. MISCELLANEOUS.
55.
Wisconsin State Tax Incentives for Renewable Energy
and Green Building
renewable resource application to Taxpayer’s residential
property.
55.01
Wisconsin state property tax exemption for solarenergy system or a wind-energy systems
C. QUALIFYING ACTIVITY. Taxpayer must install and
finance an energy efficiency improvement or a renewable
resource application to Taxpayer’s residential property. Local
governments may offer property tax financing for renewable
energy and energy efficiency improvements proposed by
property owners. An energy efficiency improvement is an
improvement to a residential premises that reduces the usage
of energy or increases the efficiency of energy usage.
A. GENERAL DESCRIPTION. Wisconsin provides a property
tax exemption in the amount of 100% of the tax on solarenergy system or a wind-energy systems.
Wis. Stat.
§70.111(18); Wis. Adm. Code Tax 12.50.
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer owners of solar-energy or wind-energy system
property.
D. INCENTIVE AMOUNTS.
C. QUALIFYING ACTIVITY. Taxpayer must own solar-energy
or wind-energy system property. A solar-energy system is
equipment which directly converts and then transfers or stores
solar energy into usable forms of thermal or electrical energy.
A wind-energy system is equipment which converts and then
transfers or stores energy from the wind into usable forms of
energy.
F. INCENTIVE TIMEFRAME.
1.
2.
3.
Qualifying solar and wind energy systems must be
certified by the WI Department of Commerce.
Qualifying solar-energy systems does not include
equipment or components that would be present as
part of a conventional energy system or a system
that operates without mechanical means.
Qualifying wind-energy systems does not include
equipment or components that would be present as
part of a conventional energy system.
D. INCENTIVE AMOUNTS. The tax exemption amount is
100% of the property tax due.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME. Taxpayer must apply for the tax
exemption by April 1 immediately following the assessment
date for which the exemption is claimed.
E. INCENTIVE LIMITS.
G. MISCELLANEOUS.
55.03
Wisconsin state sales tax exemptions for renewable
energy systems
A. GENERAL DESCRIPTION. Wisconsin provides a sales tax
exemption in the amount of 100% of the tax on renewable
energy systems.
Wis. Stat. §77.54; Wis. Stat. §
196.378(1)(ar); A.B. 40 (2011).
B. ELIGIBLE TAXPAYERS. The tax exemption is available to
Taxpayer purchasers of biomass fuel and wind, solar, and
anaerobic digester equipment.
C. QUALIFYING ACTIVITY. Taxpayer must: (1) purchase of
biomass fuel or biofuel; (2) purchase wind, solar, or anaerobic
digester equipment; or (3) sell, store, use, or otherwise
consume electricity or energy produced by a qualifying
system. Qualifying systems include biomass, wind and solar
systems.
1.
G. MISCELLANEOUS.
55.02
Wisconsin state property tax financing option for
renewable energy and energy-efficiency projects
2.
3.
A. GENERAL DESCRIPTION. Wisconsin provides a property
tax financing option for municipalities for renewable energy
and energy-efficiency projects. Wis. Stat. §66.0627 (8); A.B.
255 (2009).
B. ELIGIBLE TAXPAYERS. The tax financing is available to
Taxpayer installing an energy efficiency improvement or a
4.
Biomass includes wood, energy crops, biological
wastes, biomass residues, and landfill gas. Biomass
residues includes harvesting of timber or the
production of wood products, including slash,
sawdust, shavings, edgings, slabs, leaves, wood
chips, bark and wood pellets manufactured primarily
from wood or primarily from wood residue.
Biofuel includes vegetable oil and animal fats that
are converted into motor vehicle fuel.
Qualifying equipment must be capable of producing
at least 200 watts of alternating current or 600
British thermal units per day.
Qualifying equipment does not include an
uninterruptible power source that is designed
primarily for computers.
D. INCENTIVE AMOUNTS.
100% of the sales tax due.
The tax exemption amount is
1.
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME. The tax exemption begins July 1,
2011.
G. MISCELLANEOUS.
55.04
Wisconsin state income tax credit for biodiesel fuel
production
A. GENERAL DESCRIPTION. Wisconsin provides an income
tax credit in the amount of $0.10 per gallon of biodiesel fuel
produced. Wis. Stat. §71.28(3h); Wisconsin Dept. Rev. Tax
Bulletin 162, 07/01/2009.
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayer producers of biodiesel fuel.
1.
Pass-through entities such as tax-option (S)
corporations, partnerships, and limited liability
companies pass the tax credit along to their
shareholders, partners or members, as the case may
be, in proportion to their ownership interests
C. QUALIFYING ACTIVITY. Taxpayer must produce biodiesel
fuel. Biodiesel fuel is a fuel that is comprised of monoalkyl
esters of long chain fatty acids derived from vegetable oils or
animal fats.
1.
C. QUALIFYING ACTIVITY. Taxpayer must install or retrofit
pumps capable of dispensing motor vehicle fuel marketed as
gasoline and 85% or more ethanol, or motor vehicle fuel
marketed as diesel fuel, and 20% biodiesel fuel or that mix
fuels from separate storage tanks and allow the end user to
choose the percentage of gasoline replacement renewable fuel
or diesel replacement renewable fuel in the motor vehicle fuel
dispensed.
D. INCENTIVE AMOUNTS. The tax credit amount is 25% of
the installation or retrofit costs of the ethanol and biodiesel
fuel pumps.
E. INCENTIVE LIMITS. The maximum tax credit amount is
$5,000 per service station.
F. INCENTIVE TIMEFRAME. The tax credit expires December
31, 2017. Unused tax credit may be carried forward 15 years.
G. MISCELLANEOUS.
55.06
Wisconsin state income tax credit for vehicle and
energy-efficiency research activities
Taxpayers must produce at least 2,500,000 gallons
of biodiesel fuel per year.
D. INCENTIVE AMOUNTS. The tax credit amount is $0.10 per
gallon of biodiesel fuel produced.
E. INCENTIVE LIMITS.
amount is $1 million.
The maximum annual tax credit
F. INCENTIVE TIMEFRAME. The tax credit begins January 1,
2012 and expires December 31, 2014. Unused tax credit may
be carried forward 15 years.
G. MISCELLANEOUS.
55.05
Pass-through entities such as tax-option (S)
corporations, partnerships, and limited liability
companies pass the tax credit along to their
shareholders, partners or members, as the case may
be, in proportion to their ownership interests
Wisconsin state income tax credit for ethanol and
biodiesel fuel pump
A. GENERAL DESCRIPTION. Wisconsin provides an income
tax credit in the amount 25% of the installation or retrofit costs
of ethanol and biodiesel fuel pumps. Wis. Stat. §71.07(5j);
Wis. Stat. §71.28(5j); S.B. 279 (2010).
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayers installing or retrofitting ethanol and biodiesel fuel
pumps.
A. GENERAL DESCRIPTION. Wisconsin provides an income
tax credit in the amount of 10% of the increase in qualifying
research expenses paid or incurred in the current taxable year
over the base period research expenses. Wis. Stat. §71.28;
Wis. Stat. §71.47;
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayers paying or incurring qualifying research expenses.
1.
Taxpayer may not be a pass-through entity,
including partnerships, limited liability companies,
and tax-option (S) corporations. Taxpayer may not
be a partner, member or shareholder of a passthrough entity. Taxpayer may be a limited liability
company or publicly traded partnership that is
treated a corporation under Wisconsin law.
C. QUALIFYING ACTIVITY. Taxpayer must pay or incur
qualifying research activities. Qualifying research activities
consist of research into the design of fuel cell, electric and
hybrid drives for vehicles, including designing vehicles
powered by fuel cell, electric and hybrid drives and improving
the production processes for vehicles and fuel cell, electric and
hybrid drives.
D. INCENTIVE AMOUNTS. The tax credit amount is 10% of
the increase in qualifying research expenses paid or incurred
in the current taxable year over the base period research
expenses. Qualifying research expenses are defined in IRC
§41 as the sum of in-house research expenses and 65% of
contract research expenses (75% for amounts paid to
qualifying research consortia). The base amount is the product
of Taxpayer's fixed-base percentage and the average annual
gross receipts for the four tax years preceding the tax credit
year.
1.
Taxpayer may elect to calculate the research credit
using the alternative computation method provided
under IRC §41(c)(4).
E. INCENTIVE LIMITS.
F. INCENTIVE TIMEFRAME. The tax credit must be claimed
by 4 years after the unextended due date of the return to which
it relates. Unused tax credit may be carried forward 15 years.
G. MISCELLANEOUS.
55.07
Wisconsin state income tax credit for woody biomass
equipment
A. GENERAL DESCRIPTION. Wisconsin provides an income
tax credit in the amount of 10% the cost of equipment that is
used primarily to harvest or process woody biomass that is
used as fuel or as a component of fuel. Wis. Stat.
§71.07(3rm); Wis. Stat. §560.209; Regs. §§ 166.10 to .60.
B. ELIGIBLE TAXPAYERS. The tax credit is available to
Taxpayers paying or incurring qualifying biomass equipment.
1.
2.
Taxpayer must be certified by the WI Department of
Commerce.
Taxpayer may not be a pass-through entity,
including partnerships, limited liability companies,
and tax-option (S) corporations. A partnership,
limited liability company, or tax-option corporation
may compute the amount of credit that each of its
partners, members, or shareholders may claim and
shall provide that information to each of them.
Partners, members of limited liability companies,
and shareholders of tax-option corporations may
claim the credit in proportion to their ownership
interest.
C. QUALIFYING ACTIVITY. Taxpayer must place in service
equipment that is used primarily to harvest or process woody
biomass that is used as fuel or as a component of fuel. Woody
biomass is trees and woody plants, including limbs, tops,
needles, leaves, and other woody parts, grown in a forest or
woodland or on agricultural land.
D. INCENTIVE AMOUNTS. The tax credit amount is 10% the
cost of qualifying equipment.
E. INCENTIVE LIMITS. The aggregate maximum tax credit
amount is $100,000 per taxpayer. The maximum statewide
annual tax credit amount is $900,000.
1.
Taxpayers having no more than $5 million in gross
receipts must be allocated $450,000.
F. INCENTIVE TIMEFRAME.
G. MISCELLANEOUS.
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