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Green Energy Incentives Workbook
Green Energy Incentives Workbook
Green Energy Incentives Workbook
Green Energy Incentives Workbook
Green Energy Incentives Workbook
Green Energy Incentives Workbook
Green Energy Incentives Workbook
Green Energy Incentives Workbook
Green Energy Incentives Workbook
Green Energy Incentives Workbook
Green Energy Incentives Workbook
Green Energy Incentives Workbook
Green Energy Incentives Workbook
Green Energy Incentives Workbook
Green Energy Incentives Workbook
Green Energy Incentives Workbook
Green Energy Incentives Workbook
Green Energy Incentives Workbook
Green Energy Incentives Workbook
Green Energy Incentives Workbook
Green Energy Incentives Workbook
Green Energy Incentives Workbook
Green Energy Incentives Workbook
Green Energy Incentives Workbook
Green Energy Incentives Workbook
Green Energy Incentives Workbook
Green Energy Incentives Workbook
Green Energy Incentives Workbook
Green Energy Incentives Workbook
Green Energy Incentives Workbook
Green Energy Incentives Workbook
Green Energy Incentives Workbook
Green Energy Incentives Workbook
Green Energy Incentives Workbook
Green Energy Incentives Workbook
Green Energy Incentives Workbook
Green Energy Incentives Workbook
Green Energy Incentives Workbook
Green Energy Incentives Workbook
Green Energy Incentives Workbook
Green Energy Incentives Workbook
Green Energy Incentives Workbook
Green Energy Incentives Workbook
Green Energy Incentives Workbook
Green Energy Incentives Workbook
Green Energy Incentives Workbook
Green Energy Incentives Workbook
Green Energy Incentives Workbook
Green Energy Incentives Workbook
Green Energy Incentives Workbook
Green Energy Incentives Workbook
Green Energy Incentives Workbook
Green Energy Incentives Workbook
Green Energy Incentives Workbook
Green Energy Incentives Workbook
Green Energy Incentives Workbook
Green Energy Incentives Workbook
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Green Energy Incentives Workbook

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a service of Stambaugh Ness, an independent member of the BDO Siedman Alliance

a service of Stambaugh Ness, an independent member of the BDO Siedman Alliance

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  • 1. Green Energy Tax Services Sustaining Business Growth with Energy Tax Incentives
  • 2. KEY QUESTIONS TO ASK
  • 3. Summary of Key Questions to Energy Savings – General Federal Incentives for Businesses • Did the taxpayer build or renovate a facility? • Did the taxpayer design a building for a government entity? • See Sec.179D, Energy-Efficient Commercial Building Deduction • Did the taxpayer invest in alternative energy property to generate power? • See Business Energy Investment Tax Credit • Did the taxpayer own a specified energy property? • See Payments for Special Energy Property
  • 4. Summary of Key Questions to Energy Savings – General Federal Incentives for Businesses (continued) • Did the taxpayer purchase a qualified alternative vehicle? • See Alternative Motor Vehicle Credit • Did the taxpayer purchase or lease a qualifying plug-in hybrid vehicle? • See Plug-In Electric Vehicle Credit • Did the taxpayer install qualified clean-fuel vehicle refueling property? • Alternative Refueling Property Credits
  • 5. Summary of Key Questions to Energy Savings – General Federal Incentives for Businesses (continued) • Did the taxpayer have qualified reuse & recycling property? • See Qualified Reuse & Recycling Property • Did the taxpayer provide fringe benefits for employees? • See Fringe Benefits for Employees • Did the taxpayer qualify for any alternative fuel credits? • See Alternative Fuel Credit
  • 6. Summary of Key Questions to Energy Savings – Federal Incentives for Specific Manufacturers/Developers • Did the taxpayer produce 190-proof alcohol for use as fuel or blending into fuel? • See Alcohol Fuel (Ethanol) Producer Credit • Did the taxpayer produce qualifying biodiesel & renewable diesel? • See Biodiesel & Renewable Diesel Credit • Did the taxpayer manufacture energy efficient appliances? • See Energy-Efficient Appliance Credit • Did the taxpayer construct new homes that meet certain energy efficiency standards? • See Energy-Efficient New Homes Credit • Did the taxpayer qualify for any alternative fuel credits? • See Alternative Fuel Credit
  • 7. Summary of Key Questions to Energy Savings – Federal Incentives for Energy Industry • Did the utility company produce and sell electricity from renewable sources? • Did the taxpayer produce excess electricity from renewable sources and sell it back to the grid? • See Renewable Electricity Production Credit • Did the utility company invest in a qualified advanced energy manufacturing project? • See Qualifying Advanced Energy Project Investment Credit • Did the taxpayer qualify for any alternative fuel credits? • See Alternative Fuel Credit
  • 8. Summary of Key Questions to Energy Savings – Federal Incentives for Individuals • Did the taxpayer install energy-efficient property? • See Residential Energy-Efficient Home Improvements Credit • See Summary of Tax Credits for Homeowners for qualifying products • Does the taxpayer have an energy-efficient property? • See Residential Energy-Efficient Property Credit • Did the taxpayer purchase or lease a qualifying plug-in hybrid vehicle? • See Plug-In Electric Vehicle Credit
  • 9. Summary of Key Questions to Energy Savings – State & Local Incentives for Businesses & Individuals • Does the taxpayer qualify for any state & local incentives? • See Appendices A & B for State & Local Incentives for Businesses & Individuals
  • 10. General Green Incentives and Credits for Businesses FEDERAL INCENTIVES
  • 11. Energy-Efficient Commercial Building Deduction – Section 179D Did the taxpayer design a Did the taxpayer build a NO No Section 179D building for a government OR new facility or renovate an entity? existing facility? NO benefit available Y Y E E N S S O Did the new facility or renovation include If 50% reduction is NOT met, is energy installation of interior lighting, HVAC or hot NO reduced by 20% for lighting, water systems, and building envelope that 20% for HVAC, or reduces power use 50% or more? 10% for building envelope? (compared to reference building) Y Y E E S S NO Need certification? Was the project certified? Call Matt Becker at NO Y Y 616.802.3413 E E S S Potential YES Potential Was the property placed $1.80 per square foot $0.60 per square foot in service before 2014? YES deduction deduction (whole building) N N (lighting, HVAC, or envelope) O O No Section 179D benefit available
  • 12. Business Energy Investment Tax Credit – Section 48 Did the taxpayer invest in alternative energy NO No additional benefit property to generate power available for its own use? Y E N S O Was the property: Is the property: NO 1. Qualified fuel cell? Is the property: 1. Solar property used to 2. Qualified small wind 1. Equipment for producing generate electricity, turbines? NO or distributing heating/cooling, or solar 3. Solar used to generate geothermal energy? process heat? electricity for heating or 2. Qualified micro-turbines 2. Equipment that uses the cooling or to provide (small combustion)? ground or ground water solar process heat? 3. Combined heat and to heat or cool a power systems? Y structure? E Y Y S E E S S Was the property placed in service before 2016? Was the property placed 10% credit Y in service before 2016? YES E S Note that the credit for geothermal property, with the 30% credit exception of geothermal heat pumps, has no stated (10% for solar after 2016) expiration date.
  • 13. Payments for Specified Energy Property in Lieu of Tax Credits – Section 1603 1. Specified energy property are depreciable properties that are, among others, part of an electricity production facility using wind, Did the taxpayer own a biomass, geothermal or solar energy, specified energy No additional benefit or certain power plants using fuel NO property? cells or micro-turbines. available a. Qualified property includes Y expansions of an existing E property that is qualified N S property under §45 or § 48 of O NO the IRC. 2. For property placed in service in Was the property placed in If construction of the 2009 or 2010 OR for properties that service between 1/1/2009 property began between were not placed in service in 2009 or and 12/31/2010? 2010, but for which construction 1/1/2009 and 12/31/2010, began in 2009 or 2010, applications was the property placed in must be submitted after the property Y service after 2010 and has been placed in service and E before the credit before October 1, 2011. S 3. Eligible persons must be the owner termination date? or lessee of the property and must YES Grant amount equal to have originally placed the property in service. 10% or 30% of the tax 4. See basis of the eligible http://www.treas.gov/recovery/docs/g property, depending on uidance.pdf for more information regarding credit termination dates the type of property and applicable payment percentages.
  • 14. Alternative Motor Vehicle Credit – Section 30B Did the taxpayer purchase a qualifying fuel cell, No additional benefit NO hybrid, advanced lean burn available technology or alternative fuel vehicle? Y E S Credit up to $2,400 Plug-In Electric Vehicle Credit – Section 30D Did the taxpayer purchase No additional benefit or lease and place in NO available service a qualifying plug-in hybrid vehicle? Y E S 10% credit up to $2,500 10% credit up to $4,000 $7,500 maximum for low-speed vehicles, OR OR for plug-in vehicle credit motorcycles and three- wheeled vehicles conversions
  • 15. Alternative Refueling Property Credits – Section 30C Did the taxpayer install qualified* clean-fuel vehicle refueling property to be NO No additional benefit used in a trade or available Y business? E S 50% credit of up to 30% credit of up to OR $50,000 $200,000 for hydrogen * Clean-burning fuels are at least 85% composed of ethanol, natural gas, compressed natural gas, liquefied natural gas, liquefied petroleum gas or hydrogen – or any mixture of biodiesel and diesel fuel containing at least 20% biodiesel.
  • 16. Qualified Reuse & Recycling Property – Section 168(m) * Qualified reuse and recycling Did the taxpayer have property is machinery or qualified reuse and No additional benefit equipment that is used NO exclusively to collect, distribute or recycling property*? available recycle qualified reuse and Y recyclable materials. It also E includes software necessary to S operate such equipment. Bonus Depreciation Equivalent Fringe Benefits for Employees – Section 132 There are two new “green” provisions allowing increased fringe benefits. Fringe benefits Fringe benefit Bicycle provided to employees are not exclusion for commuters - taxed as income, even if the transit is $20/month fringe employer offers the employee a increased to benefit exclusion choice between cash $230 in 2009 compensation and the fringe benefit.
  • 17. Incentives for Specific Manufacturers & Developers FEDERAL INCENTIVES
  • 18. Alcohol Fuel (Ethanol) Producer Credit – Section 40 Did the taxpayer produce No additional benefit 190-proof alcohol for use NO available as a fuel or blending into fuel? Y E S Additional 10¢/gallon Higher credit rate for 60¢/gallon credit small ethanol producer cellulosic biofuel credit Biodiesel & Renewable Diesel Credit – Section 40A Did the taxpayer produce No additional benefit NO qualifying biodiesel & available renewable diesel? Y E S Incentive may be taken as an income tax $1.00/gallon credit credit, an excise tax credit or as a payment from U.S. Treasury Department
  • 19. See Appendix C Energy-Efficient Appliance Credit – Section 45M Did the taxpayer manufacture energy- No additional benefit NO efficient clothes washers, available dishwashers and/or refrigerators? Y E S Washers Dishwashers Refrigerators $75 - $250 per appliance $45 - $75 per appliance $50 - $200 per appliance Energy-Efficient New Homes Credit – Section 45L Did the taxpayer construct No additional benefit new homes that meet NO available certain energy efficiency standards? Y E S Up to $2,000 credit per home
  • 20. Incentives Geared to Energy Industry FEDERAL INCENTIVES
  • 21. Renewable Electricity Production Credit – Section 45 2.1¢/kWh for wind, geothermal, closed-loop biomass; 1.1¢/kWh for other eligible technologies* Did the utility company produce and sell electricity from renewable sources such as Did the taxpayer produce landfill gas, wind, solar, O excess electricity from hydroelectric, geothermal or R renewable sources and sell it biomass that were placed in back to the grid? service before 12/31/2012? No additional benefit available *Note that the duration of the credit is generally 10 years after the date the facility is placed in service, but there are two exceptions: Open-loop biomass, geothermal, small irrigation hydro, landfill gas and municipal solid waste combustion facilities placed into service after October 22, 2004, and before enactment of the Energy Policy Act of 2005, on August 8, 2005, are only eligible for the credit for a five-year period. Open-loop biomass facilities placed in service before October 22, 2004, are eligible for a five-year period beginning January 1, 2005.
  • 22. Qualifying Advanced Energy Project Investment Credit – Section 48C Did the utility company invest in a qualified advanced energy No additional benefit NO manufacturing project(s) that available In total, $2.3 billion worth of establishes, re-equips or expands a manufacturing facility? credits may be allocated under Y this program. E S In determining which projects to certify, the U.S. Treasury Did the project produce any of the following: Department must consider those 1. Equipment and/or technologies used to produce energy from the sun, wind, geothermal or “other” which most likely will be renewable resources; commercially viable, provide the 2. Fuel cells, micro-turbines or energy-storage systems for use with electric or hybrid-electric motor greatest domestic job creation, vehicles; provide the greatest net reduction 3. Equipment used to refine or blend renewable fuels; or 4. Equipment and/or technologies to produce energy-conservation technologies (including energy- of air pollution and/or greenhouse conserving lighting technologies and smart grid technologies)* gases, have great potential for technological innovation and Y commercial deployment, have the E lowest levelized cost of generated S (or stored) energy or the lowest Did the taxpayer apply and receive U.S. Treasury Department levelized cost of reduction in certification for the project? energy consumption or Y greenhouse gas emissions, and E have the shortest project time. S 30% credit (taxpayer may not combine with business energy investment tax credit) *This credit may be expanded in the future to include other energy technologies that reduce greenhouse gas emissions, as determined by the U.S. Treasury Department. Note: The U.S. Treasury Department, in consultation with the U.S. Department of Energy, must create additional specific program guidelines and the application process by August 16, 2009.
  • 23. Alternative Fuel Credit – Sections 6426 & 6427 The credit may be claimed as: Alternative fuels that may qualify (1) an excise tax payment on for the 50¢ per gallon refundable Form 8849, Claim for Refund of tax credit include: Excise Taxes; (2) an excise tax credit on Form 720, Quarterly Liquefied petroleum gas, Federal Excise Tax Return; or (3) including propane; alcohol fuels as a refundable income tax credit defined by the Department of on Form 4136, Credit for Federal Energy as “P Series Fuels” under Tax Paid on Fuels. The taxpayer 42 USC 13211(2); compressed or must coordinate its claims to liquefied natural gas; liquefied prevent double usage of credits hydrogen; liquid fuel derived from Sections 6426 & 6427 provide various and refunds. Excise tax coal; compressed or liquefied gas per-gallon credits for alternative fuels, payments and credits are derived from biomass defined generally included in taxable under §45K(c)(3); liquid fuel including alcohol or ethanol. income, but refundable income derived from biomass defined tax credits claimed on Form 4136 under §45K(c)(3), but excluding See Summary of Alternative Fuel Credit Incentives Chart may not be. ethanol, methanol or biodiesel. To claim alternative fuel credits or payments, the taxpayer must first register for excise tax activities by filing Form 637, Application for Registration (for Certain Excise Tax Activities).
  • 24. Summary of Alternative Fuel Credit Incentives Alcohol Fuel Qedit (Neat) §40(a)(2) Alcohol 1mm biomass that is at least ISO-prool. Income Tax ISO-Prool [tha nol = 12/31/2010 Neatluel mustbe usedasa luelin producers 45C/Gal business or sold at retail byproducer into a motor vehidetanlc. 150-Prool[thanol = 33.33C Gal ISO-Wool Methanol = I &C Gal ISO-Wool Methanol = 451/Gal Alcohol Fuel lixture Credit §40(a)(1) Mixture of alcohol Irom biomass that is at least Income & ISO-Prool [tha nol = 12/31/2010 I50-proolwith gasoline or motorfuel that is used [iseTax 451/Gal as a fuel in producer's business orsold by §6126(b) roduceras a fuel. 15O-Ptool[thanol = 33.331 Ga §6121(efll) 1S0-Prool Methanol = 01 / Gal 150-Prool Methanol = 451/Gal Small Ethanol ProducerCiedit §40(a)(3) Small pioducerof 150-proof ethanol 1mm biomass IncomeTax 150-ProolEthanol = 12/31/2010 that producer uses as a fuel or sells as a luel. 101/ Gal May be mixed or neat. limited to 15 mil. gallons perar.Asmall produceris generallyOmil. allonsorless er ar. Cell ulosic Biofuel Credit §40(a)(4) liquid fuel lorm renewable cellulosic matterthat Income Tax SLO1/ Gal, reduced by 12/31/2012 meets(Iean AirAct §211,and which produceruses alcohol mixture and as a fuel or sells as a luel. May be mixed or neat small etha nol producer If alcohol, it must be 150-proof. credits, ilfuel is alcohol
  • 25. Summary of Alternative Fuel Credit Incentives (continued) Biodiesel Ciedit (Neat) §40A(a H?) Fattyacids from plant or a nimal mailer that meets Income Tax $1.00, Ga lion 12/31/2000 ji) clean AirAct §211, and (ii) ASIM Standard D6JS1. Neat fuel must be used as a fuel in producer's business orsold at ,etail bypioducer into a motor tiehicle tank. Biodiesel MixtureCredit §40A(a)(1) Mixtureofbiodiesel anddiesel fuel thatis used lncome& $1.00/Gallon 12/31/2009 as a fuel in producer's business or sold by ExciseTax §6426(c) producer as a fuel. §6421(e)(1) Small Agri-Biodiesel Credit §40A(a)(3) Small producer of biodiesel that producer uses as Income lax 1OC/ Gal Ion of 12/31/2009 a fuel or sells as a fuel. May be mixed or neat. flgri-Biodiesel limited tol5mil.gals/year. Asmall producer is generally 60 mu. gallons or less per year. IU(.1tflstIttSiItURIIIIII.1[,)t}. , IiftII.taPnzgtc,,lI[EI IhJ4 and which meets Clean Air Act4211. Reduces ExciseTax from Indicated 24.3C down to 19.1C Alternative Fuel Credits (Neat) §6426(dJ liquid petroleum gas; .P Series alcohol fuels; ExciseTax SOC/ Gal Ion 12/31/2009 §6421(e)(2J Compressed or liquefied natural gas; liquid hydrogen; liquid coal fuel; Compressed or liquefied biomass gas; liquid biomass fuel (excludingethanol, methanol, or biodieselj. Fuel must be used or sold for use in a motor vehicle. Alternative Fuel MixtureCredits §6426(e) Mixtureofalternativefuel with diesel fuel, ExciseTax SOC/Gallon 12/31/2009 gasoline, or kerosene. The mixture must be sold as a fuel or used as a fuel in the producer's §6421(e)(1) business.
  • 26. Personal Incentives for Individuals FEDERAL INCENTIVES
  • 27. Residential Energy-Efficient Home Improvements Credit – Section 25C Did the taxpayer install energy-efficient property, NO No additional benefit such as water heaters, central air conditioning and heating, boilers, heat pumps, air conditioners, available building insulation, windows, doors, roofs or circulating fans used in a qualifying furnace? Y E S 30% credit of up to $1,500 Were the qualified purchases for all improvements between 1/1/2009 and combined during 2009 and 12/31/2010? YES 2010 You can find a list of qualifying home improvement equipment from the Energy Star web site: www.energystar.gov/index.cfm?c=tax_credits.tx_index
  • 28. Summary of Tax Credits for Homeowners Insulation Insulation Meets 2009 IECC & Amendments 30%of cost urflç For insulation to qualify, its primary purpose s15001 must beth insulate (example: insulated siding doesnot.uali ). Check to see if you have Home Performance with ENERGYSTAR in your ares. Adding insulation to ur home is covered. Windows & Doors Exterior Windows and Beforelunel 2009: 30%of cost up to Notall ENERGYSTAR labeled windows and Skylights 51,5001 s lihts .uali fortaxcredit Must mea ENERGY STAR criteria More information Afteriunel 2009: Ufactorc=030 SIIGCc=0.30 Storm Windows In combination with the exterior 30%of cost up to FAQ on storm doors and storm windows. window over which itis installed: 51,5001 1. has a U-factor and SIIGC of 030 or below 2. Meets the IECC Exterior Doors Beforeiunel 2009: 30%ofcosç up to Notall ENERGY SlARdoors will qualify. Must med ENERGY SFAR criteria 51,5001 More information Afteriunel 2009: Ufactorc=0.30 SIIGCc=0.30
  • 29. Summary of Tax Credits for Homeowners (continued) Windows & Doors (cont) Storm Doors In combination with a wood door over 30%of cost up to FAO on storm doors and storm windows. which itis installed: 51,5001 1. has a U-factor and SIIGC of 030 or below 2. Meets the IECC Roofing Metal Roofs, All ENERGYSTARqualified metal and 30%of cost up to FN on roofs thatqualify for the tax credit Asphalt Roofs reflective asphalt shingles 51,5001 Central A/C SplitSystems 30%of cost up to FMI on Central Ns thatqualify for thetax credit 51,5001 [ER '=13 SEER 16 FAQ on Air Source Heat Pumos that uualify for the tax credit 'a.i'gesy r1fl5 '. noa ' ipr..uc.wi qualify for thetax credit View ENERGY SMR criteria. [[R'=12 SEER 14 Air Source 1-leat Pumps SpktSysterns. 30%ofcosç up to I-ISPF 83 $is001 [ER 123 SEER 15 Package systems: IISPF>=8 EER 12 SEER 14
  • 30. Summary of Tax Credits for Homeowners (continued) uvw (cont) Natural Gas or Propane AFUE >= 95 30%of cost up to FM) on Furnaces and Boilers thatqualify for the Furnace $15001 tax credit Oil Furnace AFUE 90 30%ofcosç up to $15001 Note notall ENERGYSIAR products will qualify for thetax credit View ENERGY STAR Gas, Propane, or Oil I-lot AFUE 90 30%of cost up to criteria for furnaces, boilers. Water Boiler $15001 Advanced Main Air No more than 2% of furnace total 30%of cost up to Read this FM) if the fan qualifies, but the Circulating Fan energy use. $15001 furnace does not Water 1-leaters Gas, Oil, Propane Water Energy Factor '= 022 30%of cost up to FAQ on Water Heaters thataualifv for the tax I-lea ter or a thermal efficiency of at least 90%. $15001 credit Electric Heat Pump Water Samecriteria as ENERGYSTAR: Energy 30%of cost up to View ENERGY STAR criteria for water heaters. I-lea ter Factor '= 2.0 $15001 Biomass Stove Biomass Stove Stovewhich burns biomass fuel to 30%of cost up to FAQ on biomass stoves. heata homeor heat water. $15001 Thermal efficiency rating of at least 75% as measured using a lower heating value.
  • 31. Summary of Tax Credits for Homeowners (continued) Geothermal Heat Pump Geothermal Heat Pump Samecriteria as ENERGY STAR: 30% of the cost All [N[RGYSTAR .-thermal heat urn's .uali for the tax credit Closed mop: Must be "placed into servic before December 31.2016. [ER '= 14.1 COP '=3.3 Open Loop: [ER '= 16.2 COP '=3.6 Direct Expansion: [ER >= 15 COP >=3.5 Solar Energy Systems Solar Water Heating At least half of the energy generated 30%of cost All ENERGY STAR solar water heaters qualify for by the ifying property must the lax credit come from the sun. Homeowners may only claim spendingon thesolar water heating system property, not the entire water heating system of the household. The credit is notavailablefor Must be placed in service before December31 expensa for swimming pools or hot 2016. tubs. The water must be used in the dwelling. The system must be certified by the Solar Ratingand Certification Cor oration (SRCC).
  • 32. Summary of Tax Credits for Homeowners (continued) Solar Energy Systems Photovoltaic Systems Photovoltaic systems must provide 30%of cost Must be placed in service before December31 (cont) electricity for the residence, and must Z1!1L meetapplicablefireand electrical code requirement Small WindEnergy Residential Small Wind has nameplatecapacityofnotmore 30%of cost Mustberilaced inservicebeforeDecember3l. tems Turbines than 100 kilowatts. 2016. Fuel Cells Residential Fuel Cell and Efficiency of atleast3o% and must 30%of the cost up Mustbeplaced in service before December 31 microturbine system have a capacity of at least 0.5 kW. to $500 per .5 kW 2016. of wer ca aci Cars Hybrid gasoline-electric, Based on a formula There is a 60,000 vehicle limit per manufacturer diesel, battery-electric, determined by before a phase-out period begins. Toyota and alternative fuel, and fuel cell vehicle weight Honda havealready been phased out Credit is vehicles technology, and still availablefor Ford, GM and Nissan. compared to base yr models For more information visit Fueleconomy.gov Use IRS Form 8910 for hybrid vehicles purchased for personal use. Use IRS Form 3800 for hybrid vehicles purchased for busi ness purposes. Plug-in hybrid electric 5250041,500 Thefirst25o,000 vehicles sold getthefull tax vehicles credit (then it phases out like the hybrid vehicle tax credits). [ifectiveianuary 1,2009. to a $1500 mudmum per homeowner foruI improvements combinet
  • 33. Residential Energy-Efficient Property Credit – Section 25D Does the taxpayer have an energy-efficient property, such as solar water heaters, geothermal No additional benefit heat pumps, fuel cells or wind turbines? NO Y available E S 30% personal tax credit
  • 34. See Appendix C Plug-In Electric Vehicle Credit – Section 30D Did the taxpayer purchase No additional benefit or lease and place in NO available service a qualifying plug-in hybrid vehicle? Y E S 10% credit up to $2,500 for low-speed vehicles, 10% credit up to $4,000 for $7,500 maximum credit OR motorcycles and three- OR plug-in vehicle conversions wheeled vehicles Starting January 1, 2009, there is a new tax credit for Plug-in hybrid electric vehicles, starting at $2,500 and capped at $7,500 for cars and trucks (the credit is based on the capacity of the battery system). The first 250,000 vehicles sold get the full tax credit (then it phases out like the hybrid vehicle tax credits). Tax credits are available to buyers of hybrid gasoline-electric, diesel, battery-electric, alternative fuel, and fuel cell vehicles. The tax credit amount is based on a formula determined by vehicle weight, technology, and fuel economy compared to base year models. These credits are available for vehicles placed in service starting January 1, 2006. For hybrid and diesel vehicles made by each manufacturer, the credit will be phased out over 15 months starting after that manufacturer has sold 60,000 eligible vehicles. For vehicles made by manufacturers that have not reached the end of the phase-out, the credits will end for vehicles placed in service after December 31, 2010. See the IRS website for updated information http://www.irs.gov/newsroom/article/0,,id=157557,00.html .
  • 35. Incentives for Businesses STATE & LOCAL INCENTIVES
  • 36. State & Local Incentives for Businesses • There are many state and local incentives available to businesses that are energy efficient, invest in energy- efficient products, produce renewable energy, manufacture renewable energy products, construct energy-efficient buildings, or remodel buildings so that they are energy- efficient. • These incentives could include tax credits, abatements or exemptions, cash grants or rebates, accelerated depreciation, and below-market financing. • In addition, many utilities offer incentives for operating in an energy-efficient manner, such as reduced rates or rebates. See Appendix A for information with respect to specific states.
  • 37. Incentives for Individuals STATE & LOCAL INCENTIVES
  • 38. State & Local Incentives for Individuals To encourage the use of Many state and local governments alternative fuel vehicles, also provide incentives to states offer credits, individuals to promote the use of grants, loans, rebate energy efficient products such as programs, incentives and exemptions. alternative fuels. These incentives could include such things as tax credits, tax rebates, tax exemptions, tax deductions and cash grants. See Appendix B for information with respect The matrix also lists the to the incentives for using alternative fuel available credits, grants, and energy-efficient vehicles in specific loans, rebate programs, states. incentives and exemptions for vehicles.
  • 39. Energy Credits & Incentives APPENDIX A
  • 40. Renewable Energy & Energy Efficiency Credit Incentives
  • 41. Renewable Energy & Energy Efficiency Credit Incentives (continued)
  • 42. Renewable Energy & Energy Efficiency Credit Incentives (continued)
  • 43. Renewable Energy & Energy Efficiency Credit Incentives (continued)
  • 44. Renewable Energy & Energy Efficiency Credit Incentives (continued)
  • 45. Renewable Energy & Energy Efficiency Credit Incentives (continued)
  • 46. Renewable Energy & Energy Efficiency Credit Incentives (continued)
  • 47. Renewable Energy & Energy Efficiency Credit Incentives (continued)
  • 48. Renewable Energy & Energy Efficiency Credit Incentives (continued)
  • 49. Renewable Energy & Energy Efficiency Credit Incentives (continued)
  • 50. Alternative Fuel & Vehicle Credits & Incentives APPENDIX B
  • 51. Alternative Fuel & Vehicle Credits & Incentives
  • 52. Alternative Fuel & Vehicle Credits & Incentives (continued)
  • 53. Alternative Fuel & Vehicle Credits & Incentives (continued)
  • 54. Alternative Fuel & Vehicle Credits & Incentives (continued)
  • 55. Alternative Fuel & Vehicle Credits & Incentives (continued)
  • 56. Tax Incentives Assistance Project Summary of Federal Energy Efficiency Tax Incentives APPENDIX C Source: American Council for an Energy-Efficient Economy
  • 57. Tax Incentives Assistance Project Summary of Federal Energy Efficiency Tax Incentives For more information see: www.energytaxincentives.org Eligibility Information Amount of Incentive Years Covered Notes Product Existing homes and other non-business applications $1,500 per taxpayer cap for existing home energy efficiency incentives Central Air Conditioners and Air-Source Heat Pumps Must achieve highest efficiency 2009-2010 For list of qualified products, go to the Consortium for Energy tier established by CEE as of 30% of the cost of installation (includes Efficiency Product Directory web site: 1/1/2009. For most equipment, materials and labor) this is SEER 16. www.ceehvacdirectory.org/continue.html Water heaters (non-business applications) See AHRI Web site for list of qualifying products: 30% of the cost of installation (includes Electric 2.0 EF 2009-2010 materials and labor) Gas and oil 0.82 EF 2009-2010 *or a thermal efficiency of at least 90% http://www.ahrinet.org/Content/FederalEnergyEfficiencyTaxCredits_853.aspx Gas and oil furnaces and boilers See AHRI Web site (link above) for list of qualifying products. 30% of the cost of installation (includes Furnaces (gas & propane) 95 AFUE 2009-2010 There is also an incentive for furnace fans. Check the TIAP site for details. materials and labor) Boilers and oil furnaces 90 AFUE 2009-2010 Biomass Stoves Thermal efficiency of 75% as 30% of the cost of installation (includes measured using a lower heating materials and labor) 2009-2010 See www.pelletheat.org for more information Envelope improvements to existing homes Insulation, duct sealing and infiltration reduction Meet 2009 IECC & supplements Includes duct sealing and infiltration reduction. Exterior doors, windows and skylights Equal to or below 0.30 U Factor 30% of the cost of installation (includes and SHGC of 0.30 2009-2010 There is also an incentive for window films. See the TIAP site for details. materials only) Roofs made of metal with pigmented coatings or asphalt with cooling Meet Energy Star spec granules All appliance incentives go to manufacturer, not consumer; manufacturers are Appliances expected to reduce prices accordingly. Refrigerators Save 20-22.9% relative to federal standard Look to left $50 2008 Save 23-24.9% relative to federal standard Look to left $75 2008 & 2009 Save 25-29.9% relative to federal standard Look to left $100 2008, 2009 & 2010 Save 30% or more relative to federal standard Look to left $200 2008, 2009 & 2010 MEF: Modified Energy Factor. The higher the MEF, the more efficient the unit. Clothes Washers Meet/Exceed 1.72 MEF, do not exceed 8.0 WCF residential, top-loading $75 2008 WCF: Water Consumption Factor. The lower the WCF, the more water efficient Meet/Exceed 1.8 MEF, do not exceed 7.5 WCF residential, top-loading $125 2008 & 2009 the unit. Meet/Exceed 2.0 MEF, do not exceed 6.0 WCF residential or commercial $150 2008, 2009 & 2010 Meet/Exceed 2.2 MEF, do not exceed 4.5 WCF residential or commercial $250 2008, 2009 & 2010 The credit to manufacturers is capped at $75 million for the period of 2008 - Dishwashers 2010. The most efficient refrigerators (30%) and clothes washers (2.2 MEF/4.5 Models using no more than 324 kilowatt hours/year and 5.8 gallons of water/cycle $45.00 2008 & 2009 WCF) are exempted from this cap. Models using no more than 307 kilowatt hours/year and 5.0 gallons of water/cycle (5.5 gallons/cycle $75 2008, 2009 & 2010 for dishwashers designed for greater than 12 place settings) New Homes Incentives go to the builder, not the homebuyer. Site-built or manufactured homes 50% savings $2,000 2006 - 2009 Savings relative to 2004 IECC. Manufactured homes 30% savings $1,000 2006 - 2009 Savings relative to 2004 IECC. or meets Energy Star 2006 - 2009 Commercial Buildings Max. is $0.60/sq.ft. per system or $1.80/sq.ft. for whole bldg. Whole building 50% savings Deduction of $1.80/sq.ft. 2006 - 2013 Savings relative to ASHRAE 90.1-2001. Lighting, HVAC or envelope 50% savings Deduction of $0.60/sq.ft. per system 2006 - 2013 Savings relative to ASHRAE 90.1-2001. Lighting savings of at least 25% 25-50% savings Sliding scale: $.30/sq.ft. for 25% svgs Unclear Term of this provision depends on Treasury rulemaking. Combined Heat and Power 10% investment tax credit, applicable to the first 15MW of CHP property. See www.energytaxincentives.org/business/chp.php for details. Fuel Cells and Microturbines Systems >=0.5 kW for credit. The increase to $3,000/kW incentive for Fuel Cells: Businesses, utilities, telecommunications firms 30% efficiency 30% up to $3000/kW businesses is valid for units placed in service after October 3, 2008. Prior to that Fuel Cells: Residential 30% efficiency 30% up to $1000/kW 2006 - 2016 the incentive is $1,000/kW. Microturbines (only business credit) 26% efficiency 10% up to $200/kW Systems < 2000 kW. On-Site Renewables 30% of system installed costs, with some caveats (see below) Solar Photovoltaic (PV) and Solar Water Heating Systems See site for details. 30% up to $2,000* 2006 - 2016 *On-site renewable property installed after December 31, 2008 is not subject On-Site Small Wind 100 kW capacity or less 30% up to $4,000* 2008 - 2016 to any cap or restriction beyond the 30% of installed cost. Geothermal Heat Pumps Meets Energy Star spec. 30% up to $2,000* 2008 - 2016** See TIAP web site for details. **Commercial buildings installing heat pumps can only take the $2,000 incentive if installed after Oct. 3, 2008. See http://www.geoexchange.org/ for more information Vehicles For details on passenger vehicle/consumer vehicle incentives: Passenger hybrid and alternative-fuel vehicles, and plug-in electric www.energytaxincentives.org/consumers/vehicles.php See www.aceee.org/transportation/hybtaxcred.htm for details on credit Dependent on vehicles For details on commercial vehicle incentives: calculation manufacturer sales Heavy-duty vehicles www.energytaxincentives.org/business/commercial_vehicles.php Key: AFUE= annual fuel utilization efficiency; ASHRAE = American Society of Heating, Refrigerating & Air-Conditioning Engineers; CEE = Consortium for Energy Efficiency EF= energy factor; HSPF= heating season performance factor; IECC= International Energy Conservation Code; kW= kilowatt; SEER= seasonal energy efficiency ratio; SHGC= Solar Heat Gain Coefficient; WF= water factor. Prepared by the American Council for an Energy-Efficient Economy for the Tax Incentives Assistance Project (TIAP) www.energytaxincentives.org Updated February 2009

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