Federal financial incentives

Federal financial incentives

RESIDENTIAL APPLICATIONS

A. Personal Exemption — Residential Energy Conservation Subsidy Exclusion (Personal)

Last DSIRE Review: 06/06/2007
Incentive Type: Personal Exemption
Eligible Efficiency Technologies: Yes; specific technologies not identified
Eligible Renewable/Other Technologies: Solar Water Heat, Solar Space Heat, Photovoltaic
Applicable Sectors: Residential, Multi-Family Residential
Amount: 100% of subsidy
Website: http://www.irs.gov/publications/p525/index.html
Authority 1: 26 USC § 136

B. Personal Tax Credit — Residential Solar and Fuel Cell Tax Credit

Last DSIRE Review: 01/08/2008
Incentive Type: Personal Tax Credit
Eligible Renewable/Other Technologies: Solar Water Heat, Photovoltaic, Fuel Cells, Other Solar Electric Technologies
Applicable Sectors: Residential
Amount: 30%
Maximum Incentive: $2,000 for solar-electric systems and solar water-heating systems; $500 per 0.5 kW for fuel cells
Carryover Provisions: Excess credit may be carried forward to succeeding tax year
Eligible System Size: Not specified
Equipment/Installation Requirements: Solar water heating property must be certified by SRCC or by comparable entity endorsed by the state in which the system is installed. At least half the energy used to heat the dwelling’s water must be from solar in order for the solar water-heating property expenditures to be eligible.
Authority 1: 26 USC § 25D
Date Enacted: 8/8/2005
Effective Date: 1/1/2006
Expiration Date: 12/31/2008

C. Corporate Exemption — Residential Energy Conservation Subsidy Exclusion (Corporate)

Last DSIRE Review: 06/06/2007
Incentive Type: Corporate Exemption
Eligible Efficiency Technologies: Yes; specific technologies not identified
Eligible Renewable/Other Technologies: Solar Water Heat, Solar Space Heat, Photovoltaic
Applicable Sectors: Residential, Multi-Family Residential
Amount: 100% of the subsidy
Terms: Applies to energy conservation measures on dwelling units only
Website: http://www.irs.gov/publications/p525/index.html
Authority 1: 26 USC § 136

D. Federal Loan Program — Energy Efficient Mortgage

Last DSIRE Review: 02/26/2007
Incentive Type: Federal Loan Program
Eligible Efficiency Technologies: Yes; specific technologies not identified
Eligible Renewable/Other Technologies: Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Photovoltaic, Day lighting
Applicable Sectors: Residential
Website: http://www.resnet.us/ratings/mortgages/default.htm

COMMERCIAL & INDUSTRIAL BUSINESS APPLICATIONS

A. Corporate Deduction
Energy Efficient Commercial Buildings Tax Deduction
Clean Energy Production Tax Credit (Personal)
Last DSIRE Review: 04/05/2007
Incentive Type: Corporate Deduction
Eligible Efficiency Technologies: Equipment Insulation, Water Heaters, Lighting, Roofs, Lighting Controls/Sensors, Chillers, Furnaces, Boilers, Heat pumps, Air Conditioners, CHP/Cogeneration, Caulking/Weather-stripping, Duct/Air sealing, Building Insulation, Windows, Doors, Siding
Applicable Sectors: Commercial, Construction
Amount: $0.30-$1.80 per square foot, depending on technology and amount of energy reduction
Maximum Incentive : $1.80 per square foot
Equipment Requirements : Must meet certification requirements
Website: http://www.irs.gov/newsroom/article/0,,id=158395,00.html
Authority 1: 26 USC § 179D
Date Enacted: 8/8/2005
Effective Date: 1/1/2006
Expiration Date: 12/31/2008

Contact:
Public Information – IRS, Internal Revenue Service
1111 Constitution Avenue, N.W., Washington, DC 20224
Phone: (800) 829-1040, Web site: http://www.irs.gov

B. Corporate Depreciation
Modified Accelerated Cost-Recovery System (MACRS) + Bonus Depreciation
Last DSIRE Review: 02/27/2008
Incentive Type: Corporate Depreciation
Eligible Renewable/Other Technologies: Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Solar Thermal Process Heat, Photovoltaic, Landfill Gas, Wind, Biomass, Renewable Transportation Fuels, Geothermal Electric, Fuel Cells, CHP/Cogeneration, Solar Hybrid Lighting, Direct Use Geothermal, Anaerobic Digestion, Micro-turbines
Applicable Sectors: Commercial, Industrial
Authority 1: 26 USC § 168
Effective Date: 1986
Authority 2: Economic Stimulus Act of 2008
Date Enacted: 2/13/2008
Effective Date: 12/31/2007
Date: 12/31/2008

C. Corporate Tax Credit

Business Energy Tax Credit
Energy Efficient Appliance Tax Credit for Manufacturers
Energy-Efficient New Homes Tax Credit for Home Builders
Renewable Electricity Production Tax Credit (PTC)

Business Energy Tax Credit

Last DSIRE Review: 02/27/2008
Incentive Type: Corporate Tax Credit
Eligible Renewable/Other Technologies: Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Solar Thermal Process Heat, Photovoltaic, Geothermal Electric, Fuel Cells, Solar Hybrid Lighting, Direct Use Geothermal, Micro-turbines
Applicable Sectors: Commercial, Industrial
Amount: For equipment placed in service from January 1, 2006 until December 31, 2008, the credit is 30% for solar, solar hybrid lighting, and fuel cells, and 10% for micro-turbines. The geothermal credit remains at 10%
Maximum Incentive : $500 per 0.5 kW for fuel cells; $200 per kW for micro-turbines; no maximum specified for other technologies
Eligible System Size : Micro-turbines less than 2 MW; fuel cells at least 0.5 kW
Authority 1: 26 USC § 48
Authority 2: IRS Form 3468

Energy Efficient Appliance Tax Credit for Manufacturers

Last DSIRE Review: 05/30/2007
Incentive Type: Corporate Tax Credit
Eligible Efficiency Technologies: Clothes Washers/Dryers, Dishwasher, Refrigerators/Freezers
Applicable Sectors: Appliance Manufacturers
Amount: $100 for clothes washers; $75-$175 for refrigerators, varies with amount of energy savings; varies for dishwashers with amount of energy savings (see summary)
Maximum Incentive : $20 million for refrigerators with 15% energy savings, $75 million for all other appliances
Carryover Provisions : Not specified
Equipment/Installation Requirements: Appliances must meet Energy Star 2007 requirements; must be new and in compliance with all applicable performance and safety standards
Authority 1: 26 USC § 45M
Date Enacted: 8/8/2005
Effective Date: 1/1/2006
Expiration Date: 12/31/2007

Energy-Efficient New Homes Tax Credit for Home Builders

Last DSIRE Review: 01/22/2008
Incentive Type: Corporate Tax Credit
Eligible Efficiency Technologies: Comprehensive Measures/Whole Building
Applicable Sectors: Construction
Amount: $1,000-$2,000, depending on energy savings and home type
Maximum Incentive : $2,000
Website : http://www.irs.gov/businesses/small/industries/
Authority 1: 26 USC § 45L
Date Enacted: 8/8/2005
Effective Date: 1/1/2006
Expiration Date: 12/31/2008

Renewable Electricity Production Tax Credit (PTC)

Last DSIRE Review: 02/13/2008
Incentive Type: Corporate Tax Credit
Eligible Efficiency Technologies:
Eligible Renewable/Other Technologies: Landfill Gas, Wind, Biomass, Hydroelectric, Geothermal Electric, Municipal Solid Waste, Refined Coal, Indian Coal, Small Hydroelectric
Applicable Sectors: Commercial, Industrial
Amount: 2.0¢/kWh for wind, geothermal, closed-loop biomass; 1.0¢/kWh for other eligible technologies. Applies to the first 10 years of operation
Website : http://www.irs.gov/pub/irs-pdf/f8835.pdf
Authority 1: 26 USC § 45
Date Enacted: 1992
Effective Date:
Expiration Date: 12/31/2008
Authority 2: The Working Families Tax Relief Act of 2004 (H.R. 1308)
Date Enacted: 10/4/2004
Effective Date: 1/1/2004
Expiration Date: 12/31/2005
Authority 3: American Jobs Creation Act of 2004 (H.R. 4520) — Sec. 710
Date Enacted: 10/22/2004
Effective Date: Varies by technology
Expiration Date: 12/31/2008 for refined coal; 12/31/2005 for others
Authority 4: Energy Policy Act of 2005 (Section 1301)
Date Enacted: 8/8/2005
Effective Date: 8/8/2005
Expiration Date: 1/1/2008 for renewable
Authority 5: The Tax Relief and Health Care Act of 2006 (H.R. 6111)
Date Enacted: 12/20/2006
Effective Date:
Expiration Date: 12/31/2008

D. Federal Grant Program

Tribal Energy Program Grant
USDA Renewable Energy Systems and Energy Efficiency Improvements Program

Tribal Energy Program Grant

Last DSIRE Review: 07/18/2007
Incentive Type: Federal Grant Program
Eligible Renewable/Other Technologies: Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Photovoltaic, Wind, Biomass, Hydroelectric, Geothermal Electric, Geothermal Heat Pumps
Applicable Sectors: Tribal Government
Amount: Varies
Max Limit : Varies
Terms : Varies
Website : http://www.eere.energy.gov/tribalenergy

USDA Renewable Energy Systems and Energy Efficiency Improvements Program

Last DSIRE Review: 03/20/2008
Incentive Type: Federal Grant Program
Eligible Efficiency Technologies: Yes; specific technologies not identified
Eligible Renewable/Other Technologies: Solar Water Heat, Solar Space Heat, Photovoltaic, Wind, Biomass, Geothermal Electric, Geothermal Heat Pumps, Hydrogen, Direct-Use Geothermal, Anaerobic Digestion, Renewable Fuels, Fuel Cells using Renewable Fuels
Applicable Sectors: Commercial, Agricultural
Amount: Grants: 25% of eligible project costs; guaranteed loans: 50% of eligible project costs
Max Limit : Grants: $500,000 per renewable-energy project and $250,000 per efficiency project; guaranteed loans: $10 million
Website : http://www.rurdev.usda.gov/rbs/farmbill
Authority 1: 7 USC § 8106
Date Enacted: 5/13/2002
Effective Date: FY 2003
Authority 2: Renewable Energy Systems and Energy Efficiency Improvements Program (Final Rule: 7 CFR 42480)
Effective Date: 7/18/2005

E. Federal Loan Program

Clean Renewable Energy Bonds (CREBs)
USDA Renewable Energy Systems and Energy Efficiency Improvements Program

Clean Renewable Energy Bonds (CREBs)

Last DSIRE Review: 02/25/2008
Incentive Type: Federal Loan Program
Eligible Renewable/Other Technologies: Solar Thermal Electric, Photovoltaic, Landfill Gas, Wind, Biomass, Hydroelectric, Geothermal Electric, Municipal Solid Waste, Small Irrigation Power
Applicable Sectors: Local Government, State Government, Tribal Government, Municipal Utility, Rural Electric Cooperative
Website : http://www.irs.gov/irb/2007-14_IRB/ar17.html
Authority 1: 26 USC § 54
Effective Date: 8/8/2005
Expiration Date: 12/31/2008

USDA Renewable Energy Systems and Energy Efficiency Improvements Program

Last DSIRE Review: 03/20/2008
Incentive Type: Federal Loan Program
Eligible Efficiency Technologies: Yes; specific technologies not identified
Eligible Renewable/Other Technologies: Solar Water Heat, Solar Space Heat, Photovoltaic, Wind, Biomass, Geothermal Electric, Geothermal Heat Pumps, Hydrogen, Direct-Use Geothermal, Anaerobic Digestion, Renewable Fuels, Fuel Cells using Renewable Fuels
Applicable Sectors: Commercial, Agricultural
Amount: Grants: 25% of eligible project costs; guaranteed loans: 50% of eligible project costs
Max Limit : Grants: $500,000 per renewable-energy project and $250,000 per efficiency project; guaranteed loans: $10 million
Website : http://www.rurdev.usda.gov/rbs/farmbill
Authority 1: 7 USC § 8106
Date Enacted: 5/13/2002
Effective Date: FY 2003
Authority 2: Renewable Energy Systems and Energy Efficiency Improvements Program (Final Rule: 7 CFR 42480)
Effective Date: 7/18/2005

G. Production Incentive

Renewable Energy Production Incentive (REPI)

Last DSIRE Review: 03/18/2008
Incentive Type: Production Incentive
Eligible Renewable/Other Technologies: Solar Thermal Electric, Photovoltaic, Landfill Gas, Wind, Biomass, Geothermal Electric, Livestock Methane, Tidal Energy, Wave Energy, Ocean Thermal, Fuel Cells using Renewable Fuels
Applicable Sectors: Tribal Government, Municipal Utility, Rural Electric Cooperative, State/local gov’t that sell project’s electricity
Amount: 1.5¢/kWh (in 1993 dollars, indexed for inflation)
Terms : 10 years
Website : http://www.eere.energy.gov/repi
Authority 1: 42 USC § 13317
Date Enacted: 10/24/1992 (subsequently amended)
Authority 2: 10 CFR 451