Business Energy Tax Credits in Oregon
author: Brian C. Setzler, CPA
|
I was doing some research for a talk I'm giving tomorrow and thought I would post some basic information about Oregon and federal tax credits for energy saving investments.
|
Oregon Business Energy Tax Credits
Questions and Answers
By: Brian C. Setzler, CPA - Puttman & Teague, LLP
Who qualifies for Oregon energy tax credits? Trade, business or rental property owners who pay taxes for a business site in Oregon are eligible.
How much is the credit? 35% of eligible project costs (incremental cost of the system or equipment that goes beyond standard). The credit is taken over 5 years unless the eligible project costs are less than $20,000, in which case the credit may be taken in year one. The credit can be sold as a pass-through item. This allows public institutions and non-profits to benefit as well.
What types of projects qualify?
• Conservation projects: Lighting improvements, irrigation efficiency, variable speed drive motor controls, HVAC controls, improved pumps and motors, heat recovery, etc.
• Renewable resource projects: Solar, wind, hydro, co-generation, geothermal or biomass projects that produce, displace or reclaim energy from waste may qualify.
• Alternative fueled vehicles: Ethanol, methanol, electric, natural gas, bio-diesel, hydrogen or hybrid vehicles are eligible.
• Rental dwelling weatherization: One unit and up. Storm or thermal windows or doors, insulation, caulking and weather stripping.
• Transportation projects: Equipment that helps employees to telecommute, employee transit passes, vehicles for vanpooling, bicycles and equipment, incentives that encourage employees to get out of their cars.
• Recycled Material Projects: Equipment to recover waste, equipment to process, sort, store or haul recycled materials, projects that develop new markets.
• Sustainable buildings: Incremental cost of applying for LEED, plus extra design and commissioning costs.
How do you qualify? You must apply for the credit with the Department of Energy BEFORE starting the project. They will let you know what qualifies.
FEDERAL TAX CREDITS
Additionally, credits may be available for buying and driving fuel-efficient vehicles and installing energy-efficient appliances and products. (Most of these are in effect through 2007. Please check to see when they expire).
• Automobile Tax Credits: Individuals and businesses that buy or lease a new hybrid are eligible to receive a tax credit between $250-$3,400 - depending on the vehicle.
• Home Energy Efficiency Improvement: Consumers who purchase and install specific products, such as energy-efficient windows, insulation, doors, roofs, and HVAC in the home can qualify for up to $500.
• Business Tax Credits: Businesses are eligible for tax credits for buying hybrid vehicles, building LEED buildings and for improving energy efficiency of commercial buildings.
• Buildings: Credits for installation of qualified fuels cells, stationary microturbine power plants, and solar equipment. Credits for building energy-efficient new homes and commercial buildings. Credits for energy-efficient appliances.
|
homepage: http://www.puttmanteague.com
contribute to this article
add comment to discussion
|
