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IMPORTANT: Please use the new application form* located under the specific heading for your energy project. These forms were updated in March 2009.
Protecting Oregon´s environment is part of our mission. That´s why the Oregon Department of Energy offers the Business Energy Tax Credit to those who invest in energy conservation, recycling, renewable energy resources and less-polluting transportation fuels.
WHAT TYPE OF PROJECTS QUALIFY?
Many projects qualify. You should complete an application form that pertains to the type of project you are doing. Click on the general heading for the type of project you are interested in to find the appropriate application form for the Business Energy Tax Credit.
* Click on project heading to access appropriate application forms
Energy Efficiency Projects
- Conservation Projects
- Horizontal-Axis Washer Projects
- Lighting
Homebuilders
- High Performance Homes
- Homebuilder Installed Renewable Energy Facilities
Renewable Energy Projects
- High Efficiency Combined Heat and Power Projects
- Renewable Energy Resource Equipment Manufacturing Facilities
- Renewable Energy Resource Generation Projects
- Solar Photovoltaic (PV) Projects
- Solar Thermal Projects
- Biomass Infrastructure Projects
Rentals
- Appliances for Rental Dwellings
- Rental Dwelling Weatherization
Transportation Projects
- Alternative Fuel Infrastructure Projects
- Alternative Fuel Vehicles
- Efficient Truck Technology
- 2009 International SmartWay Truck
- Hybrid Vehicles
- Transportation & Telework
Other Projects
- Fuel Cell Projects
- Recycling Projects
- Sustainable Buildings
The tax credit is 50 percent of the eligible project costs for:
- High Efficiency Combined Heat and Power
- Renewable Energy Resource Generation
- Renewable Energy Resource Equipment Manufacturing Facilities
The tax credit is taken over five years at 10 percent per year.
The tax credit for:
- Homebuilder Installed Renewable Energy Facilities - up to $9,000
- High Performance Home - up to $12,000
For all other projects:
Tax credit is 35 percent of eligible project costs (the incremental cost of the system or equipment that is beyond standard practice). You take the credit over five years: 10 percent in the first and second years and 5 percent each year thereafter. If you can’t take the full tax credit each year, you can carry the unused credit forward up to eight years. Those with eligible project costs of $20,000 or less may take the tax credit in one year.
Through 2007, more than 14,000 Oregon energy tax credits have been awarded.
WHO CAN GET A TAX CREDIT?
Trade, business or rental property owners who pay taxes for a business site in Oregon are eligible for the tax credit. The business, its partners or its shareholders may use the credit. The applicant must own or be the contract buyer of the project (the project owner). The business must use the equipment for the project or lease it for use at another site in Oregon.
A project owner also can be an Oregon non-profit organization, tribe or public entity that partners with an Oregon business or resident who has an Oregon tax liability. This can be done using the Pass-through Option.
PASS-THROUGH OPTION
The Pass-through Option allows a project owner to transfer their Business Energy Tax Credit project eligibility to a pass-through partner for a lump-sum cash payment. A project owner may be a public entity or non-profit organization with no tax liability or a business with tax liability that chooses to use the Pass-through Option. There may be tax implications when using the Pass-through Option. Please consult with your tax preparer.
For additional information and the Pass-through Option Application form, go to Pass-through Option.
WHAT COSTS ARE ELIGIBLE?
The tax credit can cover all costs directly related to the project, including equipment cost, engineering and design fees, materials, supplies and installation costs. Loan fees and permit costs also may be claimed. Replacing equipment at the end of its useful life and equipment required to meet codes or other government regulations are not eligible. Maintenance costs are not eligible. Applicants should check application forms for eligible costs for Renewable Energy Resource Equipment Manufacturing Facilities, Homebuilder Installed Renewable Energy Resource Facilities and High Performance Homes. please read Documentation for more information.
HOW DO I APPLY FOR THE TAX CREDIT?
You must apply for the tax credit BEFORE starting your project.
Submit the project-specific Application for Preliminary Certification. Your application must be complete and include payment for review charges.
The Oregon Department of Energy will send you a Preliminary Certificate when your application is approved. That is your go-ahead to start the project.
You will also receive additional information on how to apply for the Final Certificate (Final applications in PDF format are linked in the right-hand column). Projects with costs of $50,000 or more are required to have a letter from a certified public accountant (CPA). Click here for a sample CPA letter.
WHAT IF MY PROJECT CHANGES AFTER I BEGIN?
If your project changes (additions, deletions or fundamental changes to the scope of the project) after you have received the Preliminary Certificate, you must re-submit written documentation of the technical changes made and the impact on costs.
Please note that a Final Certificate may not be issued for more than 110 percent of the eligible project costs unless you have submitted written documentation, and the Oregon Department of Energy has issued an amended Preliminary Certification before project completion.
The Oregon Department of Energy performs some follow-up site reviews to verify that equipment has been installed and operates as specified. For more information, see Verification Reviews.
FOR MORE INFORMATION
Please read the tax credit brochure and other information linked in the right-hand column.
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Oregon Administrative Rules
2008 BETC Technical Requirements
Federal Incentives for Energy Efficiency
Economic Impacts of Energy Tax Credit Program
Final Application form:
Documentation
Application for Final Certification for Pass-through Projects
PDF
Additional Information
Case Studies
For more information, contact:
Oregon Department of Energy
625 Marion Street NE
Salem, Oregon 97301
Phone: 503-378-4040 or toll free within Oregon
1-800-221-8035
Fax: (503) 373-7806
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