SCPT Incentives Summaries Whitepaper

1
Government and Utility Incentive
Summaries
By: Markeus Farrand

2
Table of Contents
1. South Carolina (Pg. 6)
a. State and Federal
1) Biomass Energy Tax Credit
2) Biomass Energy Production Incentive
3) Business Energy Investment Tax Credit
4) Solar Energy and Small Hydropower Tax Credit
5) Renewable Electricity Production Tax Credit
6) Energy-Efficient Commercial Building Tax Deduction
7) Renewable Energy Manufacturing Tax Credit
b. Utility
1) York Electric Cooperative- Dual Fuel Heat Pump Rebate
Program
2) Santee Cooper Commercial Energy Efficiency Rebate
Program
3) Duke Energy- Non-Residential Energy Efficiency Rebate
Program
4) SCE&G- Commercial EnergyWise Program
5) Progress Energy Carolinas- Commercial Energy Efficiency
Program
6) Santee Cooper- Business Custom Rebates
2. Georgia (Pg. 17)
3) USDA- Repowering Assistance Biorefinery Program
4) Modified Accelerated Commercial Building Tax Deduction
5) USDA- Rural Energy for America Program (Energy Audit and
Renewable Energy Development Assistance Program)
6) REAP (Grants)
7) REAP (Loan Guarantees)
8) USDA- High Energy Cost Grant Program
9) Georgia Green Loans Save and Sustain Program
10)Biomass Sales and Use Tax Exemption
b. Utility
1) TVA- Mid-Sized Renewable Standard Offer Program
2) Sawnee EMC- Commercial Energy Efficiency Rebate Program
3) TVA- Solar Solutions Initiative
4) Georgia Power- Commercial Energy Efficiency Program
5) TVA- Energy Right Solutions for Business
3. North Carolina
1) USDA- Biorefinery Assistance Program

3
3) Renewable Energy Tax Credit (Corporate)
5) NC GreenPower Production Incentive
7) Modified Accelerated Cost- Recovery System
8) Energy Efficient Commercial Buildings Tax Deduction
9) USDA- Rural Energy for America Program (Grants)
10)REAP (Loan Guarantees)
11)USDA- High Energy Cost Grant Program
12)U.S. Department of Energy- Loan Guarantee Program
13)Active Solar Heating and Cooling Systems Exemption
14)Property Tax Abatement for Solar Electric Systems
b. Utility
3) TVA- Green Power Providers
4) South River EMC- Energy Efficiency Rebate Program
5) Duke Energy (Electric)- Non-Residential Energy Efficiency
Rebate Program
6) TVA- Energy Right solutions for Business
7) Duke Energy Progress- Commercial and Industrial Energy-
Efficiency Program
8) Randolph EMC- Commercial and Industrial Efficient Lighting
Rebate Program
9) Tideland EMC- Weatherization Loan Program
4. Alabama (Pg. 56)
Renewable Energy Development Assistance Program)
5) REAP (Grants)
8) Modified Accelerated Cost-Recovery System
9) Energy-Efficient Commercial Building Tax Deduction
11)AlabamaSAVES Revolving Loan Program
b. Utility
1) TVA- Mid-sized Renewable Standard Offer Program
2) TVA- Energy Rights Solutions for Business
5. Florida (Pg. 74)

4
1) Renewable Energy Production Tax Credit
4) Solar and CHP Sales Tax Exemption
6) JEA- Commercial Energy Efficiency Rebate Program
7) U.S. Department of Energy- Loan Guarantee Programs
Renewable Energy Development Assistance)
9) REAP (Grants)
10)REAP (Loan Guarantees)
11)USDA- Repowering Assistance Biorefinery Program
12)Modified Accelerated Cost- Recovery System
13)Energy- Efficient Commercial Building Tax Deduction
b. Utility
1) Florida Power and Light- Solar Rebate Program
2) Florida Power and Light- Business Energy Efficiency Rebates
3) Progress Energy Florida- Commercial Energy Efficiency
Rebate Program
6. Kentucky (Pg. 93)
1) Tax Exemption for Large-Scale Renewable Energy Projects
2) Tax Credits for Renewable Energy Facilities
7) REAP (Grants)
11)Energy- Efficient Commercial Buildings Tax Deduction
13) Incentives for Energy Cost Grant Program
14) Incentives for Energy Independence
15) Sales Tax Exemption for Manufacturing Facilities
16) Energy Efficiency Tax Credits (Corporate)
17) Renewable Energy Tax Credit (Corporate)
b. Utility

5
5) Duke Energy- Non Residential Energy Efficiency Rebate
Program
7. Tennessee (Pg. 117)
3) Sales Tax Credit for Clean Energy Technology
4) Green Energy Property Tax Assessment
7) REAP (Grants)
11)Energy- Efficient Commercial Buildings Tax Deduction
13) Sales and Use Credit for Emerging Clean Energy Industry
14) Green Energy Tax Credit
b. Utility
1) TVA- Mid- Sized Renewable Standard Offer Program

6
South Carolina (back to top)
8. Biomass Energy Tax Credit
a. In 2007 South Carolina enacted the Energy Freedom and Rural Development
Act (S.B. 243), which amended previous legislation concerning a landfill
methane tax credit. The original legislation, enacted in 2006, allows a 25%
corporate tax credit for costs incurred by a taxpayer for the use of landfill
methane gas to provide power for a manufacturing facility. The 2007
amendments allow taxpayers a credit against the income tax and/or license
fees for 25% of the purchasing and installation cost of equipment used to
create heat, power, steam, electricity, or another form of energy. Fuels used by
the equipment must be for commercial use and consist of at least 90%
biomass resources. In 2011, the South Carolina Department of Revenue issued
a private ruling that the tax credit could be applied to an individual's income
taxes. Specifically, a limited liability company (LLC) utilizing the biomass tax
credit is allowed to pass through the credit to the shareholders of an S
Corporation owning 60% of the parent LLC, provided there are at least four
shareholders and that all are residents of South Carolina. Costs incurred by a
taxpayer must be certified by the State Energy Office, in consultation with the
South Carolina Department of Agriculture and the South Carolina Institute for
Energy Studies, in order to qualify for the credit. The tax credit for all
expenditures is limited to $650,000 per taxpayer year and may not exceed
50% of a taxpayer's liability for that year. Unused credits may be carried
forward for 15 years. For a fiscal year, all claims may not exceed $650,000
and must apply proportionately to all eligible claimants. To obtain the
maximum amount of credit available, the taxpayer must submit a request for
credit to the State Energy Office by January 31st for all qualifying equipment
placed in service in the previous calendar year. The State Energy Office must
notify the taxpayer that it qualifies for the credit and the amount of credit
allocated to the taxpayer by March 1st of that year. For purposes of this credit,
a biomass resource means non-commercial 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. "Commercial use" means a use intended for the purpose of generating a
profit. A "manufacturing facility" means an establishment where tangible
personal property is produced or assembled.
9. Biomass Energy Production Incentives

7
a. Note: New claimaints are only eligible to receive this credit through June
30th, 2018 and will not be eligible to receive the credit for a full five-year
term.
b. In 2007 South Carolina enacted the Energy Freedom and Rural Development
Act, which provides production incentives for certain biomass-energy
facilities. Eligible systems earn $0.01 per kilowatt-hour (kWh) for electricity
generated or $0.30 per therm (100,000 Btu) for energy produced from
biomass resources. These incentives are available to systems that did not
produce energy from biomass resources before June 30, 2008, or systems that
increase production by at 25% over their greatest three-year average before
June 30, 2008. The incentive payment is also applicable to energy from a
qualifying facility placed in service and first producing energy on or after July
1, 2008. The maximum incentive is $100,000 per taxpayer per year.
Incentives will be paid beginning on the date the system was placed in service.
No incentives will be awarded after June 30, 2018. All claims will be paid
from the state's general fund, and total claims may not exceed $2.1 million per
fiscal year. As of August 2009, the South Carolina Department of Revenue
had distributed $300,000 in payments. The incentive payment for the
production of electricity or thermal energy may not be claimed for both
electricity and energy produced from the same biomass resource. For the
purposes of this incentive, a biomass resource is defined as "wood, wood
waste, agricultural waste, animal waste, sewage, landfill gas, and other
organic materials, not including fossil fuels."
10. Business Energy Investment Tax Credit
a. Note: IRS Notice 2015-4 included new certification requirements for small
wind turbines placed in service after January 26, 2015. Small wind turbines
must now meet the performance and quality standards set forth by either the
American Wind Energy Association Small Wind Turbine Performance
and Safety Standard 9.1-2009 (AWEA), or the International Electrotechnical
Commission 61400-1, 61400-12, and 61400-11 (IEC) The federal business
energy investment tax credit available under 26 USC § 48 was expanded
significantly by the Energy Improvement and Extension Act of 2008 (H.R.
1424), enacted in October 2008. This law extended the duration -- by eight
years -- of the existing credits for solar energy, fuel cells and microturbines;
increased the credit amount for fuel cells; established new credits for small
wind-energy systems, geothermal heat pumps, and combined heat and power
(CHP) systems; allowed utilities to use the credits; and allowed taxpayers to
take the credit against the alternative minimum tax (AMT), subject to certain
limitations. The American Recovery and Reinvestment Act of 2009, enacted
in February 2009, further expanded the credit. In general, the following credits

8
are available for eligible systems placed in service on or before December 31,
2016*:
1) Solar. The credit is equal to 30% of expenditures, with no maximum
credit. Eligible solar energy property includes 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. Hybrid
solar lighting systems, which use solar energy to illuminate the
inside of a structure using fiber-optic distributed sunlight, are
eligible. Passive solar systems and solar pool-heating systems are not
eligible.
2) Fuel Cells. The credit is equal to 30% of expenditures, with no
maximum credit. However, the credit for fuel cells is capped at
$1,500 per 0.5 kilowatt (kW) of capacity. Eligible property includes
fuel cells with a minimum capacity of 0.5 kW that have an
electricity-only generation efficiency of 30% or higher. (Note that
the credit for property placed in service before October 4, 2008, is
capped at $500 per 0.5 kW.)
3) Small Wind Turbines. The credit is equal to 30% of expenditures,
with no maximum credit for small wind turbines placed in service
after December 31, 2008. Eligible small wind property includes wind
turbines up to 100 kW in capacity. (In general, the maximum credit
is $4,000 for eligible property placed in service after October 3,
2008, and before January 1, 2009. The American Recovery and
Reinvestment Act of 2009 removed the $4,000 maximum credit limit
for small wind turbines.) Small wind turbines must meet the
performance and quality standards set forth by either the American
Wind Energy Association Small Wind Turbine Performance and
Safety Standard 9.1-2009 (AWEA), or the International
Electrotechnical Commission 61400-1, 61400-12, and 61400-11
(IEC)
4) Geothermal Systems. The credit is equal to 10% of expenditures,
with no maximum credit limit stated. Eligible geothermal energy
property includes geothermal heat pumps and equipment used to
produce, distribute or use energy derived from a geothermal deposit.
For electricity produced by geothermal power, equipment qualifies
only up to, but not including, the electric transmission stage. For
geothermal heat pumps, this credit applies to eligible property placed
in service after October 3, 2008. Note that the credit for geothermal
property, with the exception of geothermal heat pumps, has no stated
expiration date.

9
5) Microturbines. The credit is equal to 10% of expenditures, with no
maximum credit limit stated (explicitly). The credit for
microturbines is capped at $200 per kW of capacity. Eligible
property includes microturbines up to two megawatts (MW) in
capacity that have an electricity-only generation efficiency of 26% or
higher.
6) Combined Heat and Power (CHP). The credit is equal to 10% of
expenditures, with no maximum limit stated. Eligible CHP property
generally includes systems up to 50 MW in capacity that exceeds
60% energy efficiency, subject to certain limitations and reductions
for large systems. The efficiency requirement does not apply to CHP
systems that use biomass for at least 90% of the system's energy
source, but the credit may be reduced for less-efficient systems. This
credit applies to eligible property placed in service after October 3,
2008.
b. In general, the original use of the equipment must begin with the taxpayer, or
the taxpayer must construct the system. The equipment must also meet any
performance and quality standards in effect at the time the equipment is
acquired. The energy property must be operational in the year in which the
credit is first taken. Significantly, the American Recovery and Reinvestment
Act of 2009 repealed a previous restriction on the use of the credit for eligible
projects also supported by "subsidized energy financing." For projects placed
in service after December 31, 2008, this limitation no longer applies.
Businesses that receive other incentives are advised to consult with a tax
professional regarding how to calculate this federal tax credit. * A number of
changes to this credit are scheduled to take effect for systems placed in
service after December 31, 2016. The credit for 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 will decrease from 30% to 10%.
The credit for geothermal heat pumps, hybrid solar lighting, small wind, fuel
cells, microturbines, and combined heat and power systems will expire. The
credit amount for equipment, which uses geothermal energy to produce
electricity, will remain at 10%.
11. Solar Energy and Small Hydropower Tax Credit
a. In South Carolina, taxpayers may claim a credit of 25% of the costs of
purchasing and installing a solar energy system or small hydropower system
for heating water, space heating, air cooling, energy-efficient day lighting,
heat reclamation, energy-efficient demand response, or the generation of
electricity in a building owned by the taxpayer. Effective July 1, 2009, SB
1141 expanded the scope of this credit to include small hydropower systems.

10
Only hydropower systems installed after July 1, 2009 are eligible for the tax
credit. The maximum credit a taxpayer may take in any one-tax year is $3,500
for each facility or 50% of the taxpayer's tax liability for that taxable year;
whichever is less. Unused credit, or credit that exceeds the annual cap, may be
carried forward for 10 years. The term "system" includes "all controls, tanks,
pumps, heat exchangers, and other equipment used directly and exclusively
for the solar-energy system." The term "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. The Solar Rating and
Certification Corporation (SRCC) must certify solar-thermal systems or a
comparable entity endorsed by the South Carolina Energy Office to qualify
for the credit, unless the system was installed before June 19, 2007.
12. Renewable Electricity Production Tax Credit
a. Note: In December 2014, The Tax Increase Prevention Act of 2014 extended
the expiration date for this tax credit to December 31, 2014. Projects that are
not under construction prior to January 1, 2015, are ineligible for this credit.
In March 2015, IRS Notice 2015-25 extended the Continuous Construction
Test and Continuous Efforts Test (used to determine if a project commencing
construction before the end of 2014 is eligible for the PTC) by 1 year to
January 1, 2017.
b. The federal renewable electricity production tax credit (PTC) is an inflation-
adjusted per-kilowatt-hour (kWh) tax credit for electricity generated by
qualified energy resources and sold by the taxpayer to an unrelated person
during the taxable year. Originally enacted in 1992, the PTC has been
renewed and expanded numerous times, most recently by the American
Recovery and Reinvestment Act of 2009 (H.R. 1 Div. B, Section 1101 & 1102)
in February 2009 (often referred to as "ARRA"), the American Taxpayer
Relief Act of 2012 (H.R. 8, Sec. 407) in January 2013, and the Tax Increase
Prevention Act of 2014 (H.R. 5771, Sec. 155) in December 2014.
c. The tax credit amount is $0.015 per kWh in 1993 dollars for some
technologies and half of that amount for others. The amount is adjusted for
inflation by multiplying the tax credit amount by the inflation adjustment
factor for the calendar year in which the sale occurs, rounded to the nearest
0.1 cents. The Internal Revenue Service (IRS) publishes the inflation
adjustment factor no later than April 1 each year in the Federal Registrar. (For
2014, the inflation adjustment factor used by the IRS is 1.5088.) The table
below outlines the credit amount as it applies to different resource types. The
table includes changes made by H.R. 8 in January 2013, and the inflation-
adjusted credit amounts are current for the 2014 calendar year, as published in
the IRS Notice 2014-36.

11
Resource Type Credit Amount
Wind $0.023/kWh
Closed-Loop
Biomass
$0.023/kWh
Open-Loop Biomass $0.011/kWh
Geothermal Energy $0.023/kWh
Landfill Gas $0.011/kWh
Municipal Solid
Waste
$0.011/kWh
Qualified
Hydroelectric
$0.011/kWh
Marine and
Hydrokinetic
$0.011/kWh
d. The duration of the credit is generally 10 years after the date the facility is
placed in service, but there are two exceptions:
1) 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
5-year period, and
2) open-loop biomass facilities placed in service before October 22,
2004, are eligible for the 5-year period beginning January 1, 2005.
e. The credit is claimed by completing Form 8835, "Renewable Electricity
Production Credit," and Form 3800, "General Business Credit." For more
information, contact IRS Telephone Assistance for Businesses at 1-800-829-
4933.
f. Recent Legislative Changes:
1) The Tax Increase Prevention Act of 2014 (H.R. 5771, Sec. 155)
extended both the PTC and permission for PTC-eligible facilities to
claim the Investment Tax Credit in lieu of the PTC through the end

12
of 2014. (Prior to the legislation, the PTC had expired December 31,
2013.) Although not enacted until December 2014, the effective date
is January 1, 2014, meaning any qualifying project that commenced
construction at any point in 2014 is eligible to claim the PTC.
2) The American Taxpayer Relief Act of 2012 revised the PTC by
removing "placed in service" deadlines and replacing them with
deadlines that use the commencing of construction as a basis for
determining facility eligibility. It also contained language revising
the definition of the term "municipal solid waste" to exclude "paper
that is commonly recycled and which has been segregated from other
solid waste.” The definition change for municipal solid waste applies
to electricity produced and sold after the enactment date of the
legislation (January 2, 2013) in taxable years ending after that date.
g. To claim the PTC, construction on an eligible project must have “commenced
construction” prior to January 1, 2015. The IRS has issued guidance on how it
will evaluate whether construction has commenced in IRS Notices 2013-
29, 2013-60, 2014-46, and 2015-25 (please see the full text of these notices
for complete information on determining the commencing of construction).
The guidelines establish two methods—a “physical work” test and a 5% safe
harbor (see sections below for details)—to determine when construction has
begun on a qualified facility. Meeting the criteria of either method is sufficient
to demonstrate that construction has commenced. Both methods require that a
taxpayer make continuous progress towards completion once construction has
begun by meeting the Continuous Construction Test (to satisfy the Physical
Work Test) or the Continuous Efforts Test (to satisfy Safe Harbor). For
projects beginning construction before the end of 2014 and placed in service
before January 1, 2017, the facility will be considered to satisfy the
Continuous Construction Test or the Continuous Efforts Test, regardless of
the amount of physical work performed or the amount of costs paid or
incurred (Notice 2015-25).
h. The physical work test provides that a taxpayer may establish the beginning of
construction by beginning "physical work of a significant nature.” The
physical work test is based on the nature of the work performed rather than
the cost of the work; if the work performed is of a significant nature, then
“there is no fixed minimum amount of work or monetary or percentage
threshold required to satisfy the Physical Work Test” (Notice 2014-46).
Notice 2013-29 provides several examples of actions that constitute work of a
significant nature, including:
1) for a facility that produces electricity from a wind turbine, the
beginning of the excavation for the foundation, the setting of anchor

13
bolts into the ground, or the pouring of the concrete pads of the
foundation;
2) physical work on a custom-designed transformer that steps up the
voltage of electricity produced at the facility to the voltage needed
for transmission; and
3) beginning construction of roads integral to the activity performed by
the facility including onsite roads used for moving materials to be
processed (e.g., biomass) and roads for equipment to operate and
maintain the facility.
i. Safe Harbor with respect to a facility is demonstrated by showing that 5% or
more of the total cost of the facility was paid or incurred before January 1,
2015. If less than 5% of the total cost of the facility was paid or incurred prior
to January 1, 2015, Safe Harbor is not fully satisfied; however, if a taxpayer
paid or incurred at least 3%, the Safe Harbor may be satisfied and the PTC (or
ITC) may be claimed with respect to some, but not all, of the individual
facilities comprising the project. Specifically, “a taxpayer may claim the PTC
or ITC on any number of individual facilities as long as the total aggregate
cost of those individual facilities at the time the project is placed in service is
not greater than 20 times the amount the taxpayer paid or incurred before”
January 1, 2015 (Notice 2014-46).
13. Energy- Efficient Commercial Building Tax Deduction
a. Note: This tax deduction expired at the end of 2013. The Tax Increase
Prevention Act of 2014 retroactively reinstated the tax credit for projects
completed in 2014.
b. The federal Energy Policy Act of 2005 established a tax deduction for energy-
efficient commercial buildings applicable to qualifying systems and buildings
placed in service from January 1, 2006, through December 31, 2007. This
deduction was subsequently extended through 2008, and then again through
2013 by Section 303 of the federal Energy Improvement and Extension Act of
2008 (H.R. 1424, Division B), enacted in October 2008. A tax deduction of
$1.80 per square foot is available to owners of new or existing buildings who
install (1) interior lighting; (2) building envelope, or (3) heating, cooling,
ventilation, or hot water systems that reduce the building’s total energy and
power cost by 50% or more in comparison to a building meeting minimum
requirements set by ASHRAE Standard 90.1-2001. Energy savings must be
calculated using qualified computer software approved by the IRS. Click here
for the list of approved software. Deductions of $0.60 per square foot are
available to owners of buildings in which individual lighting, building
envelope, or heating and cooling systems meet target levels that would
reasonably contribute to an overall building savings of 50% if additional

14
systems were installed. The deductions are available primarily to building
owners, although tenants may be eligible if they make construction
expenditures. In the case of energy efficient systems installed on or in
government property, tax deductions will be awarded to the person primarily
responsible for the system's design. Deductions are taken in the year when
construction is completed. The IRS released interim guidance (IRS Notice
2006-52) in June 2006 to establish a process to allow taxpayers to obtain a
certification that the property satisfies the energy efficiency requirements
contained in the statute. IRS Notice 2008-40 was issued in March of 2008 to
further clarify the rules. NREL published a report (NREL/TP-550-40228) in
February 2007, which provides guidelines for the modeling and inspection of
energy savings required by the statute.
14. Renewable Energy Manufacturing Tax Credit
a. South Carolina offers a ten percent income tax credit to the manufacturers of
renewable energy operations* for tax years 2010 through 2015. In order to
qualify, a business must:
1) manufacture renewable energy systems and components in South
Carolina for solar, wind, geothermal, or other renewable energy uses
2) invest a minimum of $50 million in a Tier IV county, $100 million
in a Tier III county, $150 million in a Tier II county, and at least
$200 million in a Tier I county in new qualifying plant and
equipment expenditures the year the tax credit is claimed
3) create one full-time job that pays 125% of the state's annual median
wage for every $1 million in capital investment qualifying for the
credit
4) qualifying jobs must pay at least one hundred twenty-five percent of
this State's average annual median wage as defined by the
Department of Commerce
b. A taxpayer's total credit cannot exceed $500,000 for any year and $5 million
total for all years. Unused credits may be carried forward for fifteen years
after the tax year in which a qualified expenditure was made. The tax credit is
nonrefundable. Applicants must file a request for the credit to the State
Energy Office (SEO) by January 31 for expenses incurred the previous tax
year. Qualifying expenditures** must be certified by the SEO. The SEO is
required to notify applicant of approval and approved credit amount by the
following March. Tax credit cannot be combined with any other state tax
incentive.
c. *"Renewable energy operations" are limited to manufacturers of systems and
components that are used or useful in manufacturing renewable energy
equipment for the generation, storage, testing and research and development,

15
and transmission or distribution of electricity from renewable sources,
including specialized packaging for the renewable energy equipment
manufactured at the facility.
d. **"Qualifying investment" means investment in land, buildings, machinery,
and fixtures for expansion of an existing facility or establishment of a new
facility in South Carolina. Qualifying investment does not include relocating
an existing facility in South Carolina to another location in the State without
additional capital investment.
15. York Electric Cooperative- Dual Fuel Heat Pump Rebate Program
a. York Electric Cooperative, Inc. (YEC) offers a $200 rebate to members who
install a dual fuel heat pump in homes or businesses. The rebates are for
primary residences, commercial, and industrial locations. Rebates apply to
both existing and new construction. The incentive is for the property owner
only, meaning that renters/tenants are not eligible. For owners of
manufactured homes to receive incentives they must own the home and the
property on which it is located. Rebates are available for up to two systems
per household.
16. Santee Cooper Commercial Energy Efficiency Rebate Program
a. Santee Cooper, through its Reduce The Use program, provides rebates to
commercial customers for the purchase and installation of energy efficient
equipment and measures. Rebates are available on refrigeration, lighting,
lighting controls and sensors, air conditioners, heat pumps, chillers, variable
frequency drives for air handlers, envelope upgrades, and custom measures.
All equipment requirements specified by Santee Cooper must be met in order
to qualify for incentives. Contact the utility for equipment requirements before
purchasing items. Certain rebates are offered based on the amount of
electricity saved or avoided, while others are offered on a flat rate.
Additionally, Santee Cooper provides a variety of rebates and financing
options to residential customers for energy efficient and sustainable
improvements.
17. Duke Energy- Non-Residential Energy Efficiency Rebate
a. Duke Energy’s Smart $aver Incentive program offers rebates to non-
residential customers to install energy efficient equipment in their facilities.
All Duke Energy South Carolina nonresidential electric customers are eligible,
except those that have elected to opt out of the Energy Efficiency Rider.
Rebates are available for a wide range of equipment including lighting,
heating and cooling equipment, chillers and thermal storage units, motors,
pumps, VFDs, process equipment, and food service equipment. All equipment
must meet certain energy efficiency standards stated on the program web site.
To receive the rebates, customers should submit a completed application

16
within 90 days after the equipment is installed and operational. A list of
frequently asked questions and the program application forms can be found on
the program web site. Custom applications for up to 50% of cost on any
electricity saving device can be sent to CustomIncentives@duke-energy.com.
Three levels of energy assessments are available for commercial customers:
online, over the phone, and on-site visits by an energy professional providing
a report with paybacks. The on-site visits require a fee which can be recouped
within the Smart $aver Incentives program; to begin, customers can contact
businessservicecenter@duke-energy.com. Demand response programs are
also available, providing rewards and load curtailment via a dedicated web
portal for each commercial customer.
18. SCE&G- Commercial EnergyWise Program
a. South Carolina Electric and Gas (SCE&G) provides EnergyWise efficiency
incentives to any non-residential customers in its service territory, which have
not opted out of the DSM programs by notifying SCE&G in writing through
the Opt-Out form. Incentives cover retrofits, installing high-efficiency
equipment during new construction, and replacing old or broken equipment
such as high-efficiency lighting, LED traffic signals, HVAC systems and
variable frequency drives on HVAC systems. Commercial food service
equipment is also eligible for incentives under the program. Rebate payments
will only be made to the SCE&G electric account holder in the SCE&G
territory.
19. Progress Energy Carolinas- Commercial Energy Efficiency Program
a. Progress Energy provides rebates for energy efficiency measures in new
construction or retrofits, as well as Technical Assistance for feasibility/energy
studies to commercial, industrial and government organizations. Incentives are
based on prescriptive rebate amounts listed above or custom amounts based
on annual kilowatt-hours (kWh) saved. Prescriptive rebate amounts are
available on the program application forms on the Progress Energy web site
listed above. A Custom Whole Building incentive for new construction
modeled 10% beyond applicable building code can receive $0.09 per annual
kWh saved up to $0.14 per annual kWh saved for designs exceeding 20%
beyond code. New buildings greater than 20,000 square feet and designed
with a projected first-year electrical savings of at least 15% beyond the
applicable building code can receive a design incentive of $.05 per kWh of
projected first year savings, up to a maximum of $50,000, or a Building
Energy Modeling Incentive up to $20,000, not to exceed the total cost of the
modeling service., For retrofits to buildings that use over 500,000 kWh,
customers can receive up to 50% of the cost of an energy or feasibility study
or retro-commissioning up to $20,000 for a facility every three years. Once a

17
project is identified, a pre-approval incentive application should be submitted
to Progress Energy. Pre-approval is required for some lighting projects and all
custom projects, and technical assistance and is strongly encouraged for all
projects to reserve funding. Progress Energy should receive a final application
and all required documentation within 90 days of project completion.
20. Santee cooper- Business Custom Rebates
a. Santee Cooper has developed a Business Custom Rebate as part of their
Reduce the Use: Business Prescriptive Rebate Program, which was designed
to reduce a business's overall electricity use. The Business Custom Rebate is a
one-time rebate based on $0.10 for every kWh of verified first-year energy
savings, up to $200,000 per project. Energy-saving measures not already
covered by one of the Reduce the Use: Business Prescriptive Rebates for
lighting, HVAC, building envelope or commercial refrigeration may qualify
for a Custom Rebate. Contact Santee Cooper for more information on this
program.
Georgia (back to top)
Commission 61400-1, 61400-12, and 61400-11 (IEC)
b. The federal business energy investment tax credit available under 26 USC §
48 was expanded significantly by the Energy Improvement and Extension Act
of 2008 (H.R. 1424), enacted in October 2008. This law extended the duration
-- by eight years -- of the existing credits for solar energy, fuel cells and
microturbines; increased the credit amount for fuel cells; established new
credits for small wind-energy systems, geothermal heat pumps, and combined
heat and power (CHP) systems; allowed utilities to use the credits; and
allowed taxpayers to take the credit against the alternative minimum tax
(AMT), subject to certain limitations. The American Recovery and
Reinvestment Act of 2009, enacted in February 2009, further expanded the
credit. In general, the following credits are available for eligible systems
placed in service on or before December 31, 2016*:
i. Solar. The credit is equal to 30% of expenditures, with no maximum

18
solar lighting systems, which use solar energy to illuminate the inside
of a structure using fiber-optic distributed sunlight, are eligible.
Passive solar systems and solar pool-heating systems are not eligible.
ii. Fuel Cells. The credit is equal to 30% of expenditures, with no
maximum credit. However, the credit for fuel cells is capped at $1,500
per 0.5 kilowatt (kW) of capacity. Eligible property includes fuel cells
with a minimum capacity of 0.5 kW that have an electricity-only
generation efficiency of 30% or higher. (Note that the credit for
property placed in service before October 4, 2008, is capped at $500
per 0.5 kW.)
iii. Small Wind Turbines. The credit is equal to 30% of expenditures, with
no maximum credit for small wind turbines placed in service after
December 31, 2008. Eligible small wind property includes wind
turbines up to 100 kW in capacity. (In general, the maximum credit is
$4,000 for eligible property placed in service after October 3, 2008,
and before January 1, 2009. The American Recovery and Reinvestment
Act of 2009 removed the $4,000 maximum credit limit for small wind
turbines.) Small wind turbines must meet the performance and quality
standards set forth by either the American Wind Energy Association
Small Wind Turbine Performance and Safety Standard 9.1-2009
(AWEA), or the International Electrotechnical Commission 61400-1,
61400-12, and 61400-11 (IEC)
iv. Geothermal Systems. The credit is equal to 10% of expenditures, with
no maximum credit limit stated. Eligible geothermal energy property
includes geothermal heat pumps and equipment used to produce,
distribute or use energy derived from a geothermal deposit. For
electricity produced by geothermal power, equipment qualifies only up
to, but not including, the electric transmission stage. For geothermal
heat pumps, this credit applies to eligible property placed in service
after October 3, 2008. Note that the credit for geothermal property,
with the exception of geothermal heat pumps, has no stated expiration
date.
v. Microturbines. The credit is equal to 10% of expenditures, with no
maximum credit limit stated (explicitly). The credit for microturbines
is capped at $200 per kW of capacity. Eligible property includes
microturbines up to two megawatts (MW) in capacity that have an
electricity-only generation efficiency of 26% or higher.
vi. Combined Heat and Power (CHP). The credit is equal to 10% of
generally includes systems up to 50 MW in capacity that exceeds 60%

19
energy efficiency, subject to certain limitations and reductions for
large systems. The efficiency requirement does not apply to CHP
2008.
c. In general, the original use of the equipment must begin with the taxpayer, or
professional regarding how to calculate this federal tax credit.
d. * A number of changes to this credit are scheduled to take effect for systems
placed in service after December 31, 2016. The credit for 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 will decrease from 30% to
10%. The credit for geothermal heat pumps, hybrid solar lighting, small wind,
fuel cells, microturbines, and combined heat and power systems will expire.
The credit amount for equipment, which uses geothermal energy to produce
January 1, 2017.

20
Wind $0.023/kWh
Closed-Loop
Biomass
$0.023/kWh
Municipal Solid
Waste
$0.011/kWh
Qualified
Hydroelectric
$0.011/kWh
Marine and
Hydrokinetic
$0.011/kWh
i. open-loop biomass, geothermal, small irrigation hydro, landfill gas,

21
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 5-year
period, and
ii. open-loop biomass facilities placed in service before October 22,
4933.
f. The Tax Increase Prevention Act of 2014 (H.R. 5771, Sec. 155) extended both
the PTC and permission for PTC-eligible facilities to claim the Investment
Tax Credit in lieu of the PTC through the end of 2014. (Prior to the
legislation, the PTC had expired December 31, 2013.) Although not enacted
until December 2014, the effective date is January 1, 2014, meaning any
qualifying project that commenced construction at any point in 2014 is
eligible to claim the PTC. The American Taxpayer Relief Act of 2012 revised
the PTC by removing "placed in service" deadlines and replacing them with
deadlines that use the commencing of construction as a basis for determining
facility eligibility. It also contained language revising the definition of the
term "municipal solid waste" to exclude "paper that is commonly recycled and
which has been segregated from other solid waste.” The definition change for
municipal solid waste applies to electricity produced and sold after the
enactment date of the legislation (January 2, 2013) in taxable years ending
after that date.

22
i. Notice 2013-29 provides several examples of actions that constitute work of a
i. for a facility that produces electricity from a wind turbine, the
foundation;
ii. physical work on a custom-designed transformer that steps up the
voltage of electricity produced at the facility to the voltage needed for
transmission; and
iii. beginning construction of roads integral to the activity performed by
j. Safe Harbor with respect to a facility is demonstrated by showing that 5% or
January 1, 2015 (Notice 2014-46).
3. USDA- Rural Energy for America Program
a. The Repowering Assistance Program provides payments to eligible
biorefineries to replace fossil fuels used to produce heat or power to operate
the biorefineries with renewable biomass. Reimbursement payments are
provided to offset a portion of the costs associated with the conversion of
existing fossil fuel systems to renewable biomass fuel systems. The
reimbursement amounts vary and are determined by the availability of funds,
the project scope, and the ability of the proposed project to meet all the

23
scoring criteria. In particular reimbursement amounts are calculated by the
percentage reduction in fossil fuel used by the biorefinery, the quantity of
fossil fuels replaced by a renewable biomass system, and the cost
effectiveness of the renewable biomass system. The program will provide
reimbursement payments for eligible project costs of the renewable biomass
system during the construction phase of the repowering project. Up to 90% of
the funds can be utilized during project construction, with the remaining 10%
made upon demonstration of successful completion of the project. A
maximum of 50% of the total project costs can be reimbursed, as long as
amount does not exceed the maximum award for the fiscal year. Eligible
technologies may include, but are not limited to, anaerobic digesters,
processed steam, biomass boilers, or combined heat and power technologies
(CHP). Applicants must demonstrate, at the time of application, that the
proposed site has direct access to biomass or third party commitments to
supply biomass for the repowering project for at least three years. Payments
are made for eligible post-application costs incurred during the construction
phase of the repowering project. Congress allocated $35 million for FY 2009,
in addition to up to $15 million in discretionary funds annually beginning in
FY 2009. The American Taxpayer Relief Act of 2012 extended discretionary
funding through FY 2013.
4. Modified Accelerated Commercial Building Tax Deduction
a. Note: Sec. 125 of H.R. 5771, the Tax Increase Prevention Act of 2014,
extended the "placed in service" date of the 50% bonus depreciation provision
originally included in the American Recovery and Reinvestment Act of 2009 to
December 31, 2014, and thus retroactively through the 2014 tax year.
b. Under the federal Modified Accelerated Cost-Recovery System (MACRS),
businesses may recover investments in certain property through depreciation
deductions. The MACRS establishes a set of class lives for various types of
property, ranging from three to 50 years, over which the property may be
depreciated. A number of renewable energy technologies are classified as
five-year property (26 USC § 168(e)(3)(B)(vi)) under the MACRS, which
refers to 26 USC § 48(a)(3)(A), often known as the energy investment tax
credit or ITC to define eligible property. Such property currently includes*:
i. a variety of solar-electric and solar-thermal technologies
ii. fuel cells and microturbines
iii. geothermal electric
iv. direct-use geothermal and geothermal heat pumps
v. small wind (100 kW or less)
vi. combined heat and power (CHP)

24
vii. the provision which defines ITC technologies as eligible also adds the
general term "wind" as an eligible technology, extending the five-year
schedule to large wind facilities as well.
c. In addition, for certain other types of renewable energy property, such as
biomass or marine and hydrokinetic property, the MACRS property class life
is seven years. Eligible biomass property generally includes assets used in the
conversion of biomass to heat or to a solid, liquid or gaseous fuel, and to
equipment and structures used to receive, handle, collect and process biomass
in a waterwall, combustion system, or refuse-derived fuel system to create hot
water, gas, steam and electricity. Marine and hydrokinetic property includes
facilities that utilize waves, tides, currents, free-flowing water, or differentials
in ocean temperature to generate energy. It does not include traditional
hydropower that uses dams, diversionary structures, or impoundments. The 5-
year schedule for most types of solar, geothermal, and wind property has been
in place since 1986. The federal Energy Policy Act of 2005 (EPAct 2005)
classified fuel cells, microturbines and solar hybrid lighting technologies as
five-year property as well by adding them to § 48(a)(3)(A). This section was
further expanded in October 2008 by the addition of geothermal heat pumps,
combined heat and power, and small wind under The Energy Improvement
and Extension Act of 2008.
d. The federal Economic Stimulus Act of 2008, enacted in February 2008,
included a 50% first-year bonus depreciation (26 USC § 168(k)) provision for
eligible renewable-energy systems acquired and placed in service in 2008.
The allowance for bonus depreciation has since been extended and modified
several times since the original enactment, most recently in December 2014
by the Tax Increase Prevention Act Of 2014 (H.R. 5771, Sec. 125). This
legislation extended the "in-service" provision for qualifying property through
to December 31, 2014, and thus also did so retroactively for property placed
in service after December 31, 2013, through to enactment.
e. The 50% first-year bonus depreciation provision enacted in 2008 was
extended (retroactively for the entire 2009 tax year) under the same terms by
the American Recovery and Reinvestment Act of 2009 (H.R. 1), enacted in
February 2009. It was renewed again in September 2010 (retroactively for the
entire 2010 tax year) by the Small Business Jobs Act of 2010 (H.R. 5297). In
December 2010 the provision for bonus depreciation was amended and
extended yet again by the Tax Relief, Unemployment Insurance
Reauthorization, and Job Creation Act of 2010 (H.R. 4853). Under these
amendments, eligible property placed in service after September 8, 2010 and
before January 1, 2012 was permitted to qualify for 100% first-year bonus
depreciation. The December 2010 amendments also permitted bonus

25
depreciation to be claimed for property placed in service during 2012, but
reverted the allowable amount from 100% to 50% of the eligible basis. The
50% first-year bonus depreciation allowance was further extended for
property placed in service during 2013 by the American Taxpayer Relief Act
of 2012 (H.R. 8, Sec. 331) in January 2013. As noted above, the Tax Increase
Prevention Act Of 2014 (H.R. 5771, Sec. 125), extended these provisions
through to December 31, 2014, and thus retroactively for the 2014 tax year.
f. *Note that the definitions of eligible technologies included in this entry are
somewhat simplified versions of those contained in tax code, which often
contain additional caveats, restrictions, and modifications. Those interested in
this incentive should review the relevant sections of the code in detail prior to
making business decisions.
5. USDA- Rural Energy for America Program (Energy Audit and Renewable
Energy Development Assistance Program)
a. Note: The U.S. Department of Agriculture's Rural Development periodically
issues Notices of Solicitation of Applications for the Rural Energy for
America Program (REAP) in the Federal Registry. The most recent
solicitation for the REAP program was on December 29th, 2014 and can be
viewed in the Federal Registry here.
b. The Renewable Energy for America Program (REAP) Energy Audit and
Renewable Energy Development Assistance Program (EA/REDA) provides
assistance to agricultural producers and rural small businesses for energy
audits and renewable energy technical assistance including renewable energy
site assessments. Applicants must submit separate applications for assistance,
limited to one energy audit and one REDA per fiscal year. The maximum
aggregate amount of an energy audit and REDA grant in a Federal fiscal year*
is $100,000. In 2015, $2 Million in EA/REDA grant funding is available.
Eligible project costs for eligible applicants includes salaries directly related
to the project, travel expenses directly related to conducting energy audits or
renewable energy development assistance, office supplies (e.g., paper, pens,
file folders), administrative expenses, up to a maximum of 5 percent of the
grant, which include but are not limited to utilities, office space, operation
expenses of office and other project related equipment. Land grant colleges
and universities are referred to above as schools, public universities, and
institutions; K-12 schools are not eligible for this grant.
c. The 2014 Agricultural Act (2014 Farm Bill) authorized the Rural Energy for
America Program with $50 Million in mandatory funding each fiscal year.
USDA overhauled the Rural Energy for America Program although the core
program remains largely the same. One major change includes a 3 tiered
application structure including 1) total project costs of $80,000 or less, 2) total

26
project costs more than $80,000 but less than $200,000, and, 3) total project
costs of $200,000 or greater. Grant applications of $20,000 or less will
compete in 5 competitions (Congress required 20% of funding to be used for
small grants of $20,000 or less). The Food, Conservation, and Energy Act of
2008 (H.R. 2419), enacted by Congress in May 2008, converted the federal
Renewable Energy Systems and Energy Efficiency Improvements Program,*
into the Rural Energy for America Program (REAP). Similar to its
predecessor, REAP promotes energy efficiency and renewable energy for
agricultural producers and rural small businesses through the use of (1) grants
and loan guarantees for energy efficiency improvements and renewable
energy systems, and (2) grants for energy audits and renewable energy
development assistance. Congress has allocated funding for the program in the
following amounts: $55 million for FY 2009, $60 million for FY 2010, $70
million for FY 2011, and $70 million for FY 2012. REAP is administered by
the U.S. Department of Agriculture (USDA). In addition to these mandatory
funding levels, up to $25 million in discretionary funding may be issued each
year. The American Taxpayer Relief Act of 2012 (H.R. 8) extended
discretionary funding for FY 2013.
6. USDA- Rural Energy for America Program (Grants)
a. Note: The U.S. Department of Agriculture's Rural Development issues
periodic Notices of Solicitation of Applications for the Rural Energy for
solicitation for the REAP program was on May 5th, 2014 and can be viewed
in the Federal Registry here. The next Notice of Funding Availability will be
published in the Federal Registry and on the USDA website here. Notably, the
2014 Farm Bill removed authority for the USDA to fund REAP feasibility
studies with REAP grants.
b. The Rural Energy for America Program (REAP) provides financial assistance
to agricultural producers and rural small businesses in rural America to
purchase, install, and construct renewable energy systems, make energy
efficiency improvements to non-residential buildings and facilities, use
renewable technologies that reduce energy consumption, and participate in
energy audits and renewable energy development assistance. Renewable
energy projects for the Renewable Energy Systems and Energy Efficiency
Improvement Guaranteed Loan and Grant Program include wind, solar,
biomass and geothermal, and hydrogen derived from biomass or water using
wind, solar, or geothermal energy sources. These grants are limited to 25% of
a proposed project's cost, and a loan guarantee may not exceed $25 million.
The combined amount of a grant and loan guarantee must be at least $5,000
(with the grant portion at least $1,500) and may not exceed 75% of the

27
project’s cost. In general, a minimum of 20% of the funds available for these
incentives will be dedicated to grants of $20,000 or less. For more information
on grant, loan guarantees, loan financing, and opportunities for combinations
thereof, visit the USDA website. In 2014, $12.3 million in grants and $56.4
million in loans were awarded. For a complete list of 2014 projects.
c. Grants and loans are generally available to state government entities, local
governments, tribal governments, land-grant colleges and universities**, rural
electric cooperatives and public power entities, and other entities, as
determined by the USDA. To be eligible for REAP grants and loans, an
applicant must have a satisfactory revenue stream and be in control the
budget, operations, and maintenance of a project for the entire duration of the
loan or grant. Rural small businesses must be located in rural areas, but
agricultural producers may be located in non-rural areas. Eligible project costs
include purchasing energy efficiency improvements or a renewable energy
system, energy audits or assessments, permitting and licensing fees, and
business plans and retrofitting. For new construction the replacement of older
equipment with more efficient equipment may be eligible as a project cost
only when a new facility is planned to be more efficient and similarly sized
than the older facility. Working capital and land acquisition are only eligible
for loan guarantees. Regional rural energy coordinators provide loan and grant
applications upon request.
d. The Food, Conservation, and Energy Act of 2008 (H.R. 2419), enacted by
Congress in May 2008, converted the federal Renewable Energy Systems and
Energy Efficiency Improvements Program,* into the Rural Energy for
America Program (REAP). Similar to its predecessor, the REAP promotes
energy efficiency and renewable energy for agricultural producers and rural
small businesses through the use of (1) grants and loan guarantees for energy
efficiency improvements and renewable energy systems, and (2) grants for
energy audits and renewable energy development assistance. Congress has
allocated funding for the new program in the following amounts: $55 million
for FY 2009, $60 million for FY 2010, $70 million for FY 2011, and $70
million for FY 2012. REAP is administered by the U.S. Department of
Agriculture (USDA). In addition to these mandatory funding levels, up to $25
million in discretionary funding may be issued each year. The American
Taxpayer Relief Act of 2012 (H.R. 8) extended discretionary funding for FY
2013. The 2014 Farm Bill reauthorized the USDA to offer these programs and
removed the mandate to offer grants for feasibility studies.
e. * The Renewable Energy Systems and Energy Efficiency Improvements
Program was created by the USDA pursuant to Section 9006 of the 2002
federal Farm Security and Rural Investment Act of 2002. Funding in the

28
amount of $23 million per year was appropriated for each fiscal year from FY
2003-2007. In March 2008, the USDA announced that it would accept $220.9
million in applications for grants, loan guarantees, and loan/grant
combination packages under the Renewable Energy Systems and Energy
Efficiency Improvements Program. The application deadline was June 16,
2008.
f.    **Land grant colleges and universities are referred to above as "schools"
and "institutions". It is important to note that K-12 schools are not eligible for
this grant.
7. USDA- Rural Energy for America Program (Loan Guarantees)
a. Note: The U.S. Department of Agriculture's Rural Development issues
periodic Notices of Solicitation of Applications for the Rural Energy for
solicitation for the REAP program was on May 5th, 2014 and can be viewed
in the Federal Registry here. The next Notice of Funding Availability will be
published in the Federal Registry and on the USDA website here. Notably, the
2014 Farm Bill removed authority for the USDA to fund REAP feasibility
studies with REAP grants.
b. The Rural Energy for America Program (REAP) provides financial assistance
to agricultural producers and rural small businesses in rural America to
purchase, install, and construct renewable energy systems, make energy
efficiency improvements to non-residential buildings and facilities, use
renewable technologies that reduce energy consumption, and participate in
energy audits and renewable energy development assistance. Renewable
energy projects for the Renewable Energy Systems and Energy Efficiency
Improvement Guaranteed Loan and Grant Program include wind, solar,
biomass and geothermal, and hydrogen derived from biomass or water using
wind, solar, or geothermal energy sources. These grants are limited to 25% of
a proposed project's cost, and a loan guarantee may not exceed $25 million.
The combined amount of a grant and loan guarantee must be at least $5,000
(with the grant portion at least $1,500) and may not exceed 75% of the
project’s cost. In general, a minimum of 20% of the funds available for these
incentives will be dedicated to grants of $20,000 or less. For more information
on grant, loan guarantees, loan financing, and opportunities for combinations
thereof, visit the USDA website. In 2014, $12.3 million in grants and $56.4
million in loans was awarded. For a complete list of 2014 projects, click here.
c. Grants and loans are generally available to state government entities, local
governments, tribal governments, land-grant colleges and universities**, rural
electric cooperatives and public power entities, and other entities, as
determined by the USDA. To be eligible for REAP grants and loans, an

29
applicant must have a satisfactory revenue stream and be in control the
budget, operations, and maintenance of a project for the entire duration of the
loan or grant. Rural small businesses must be located in rural areas, but
agricultural producers may be located in non-rural areas. Eligible project costs
include purchasing energy efficiency improvements or a renewable energy
system, energy audits or assessments, permitting and licensing fees, and
business plans and retrofitting. For new construction the replacement of older
equipment with more efficient equipment may be eligible as a project cost
only when a new facility is planned to be more efficient and similarly sized
than the older facility. Working capital and land acquisition are only eligible
for loan guarantees. Regional rural energy coordinators provide loan and grant
applications upon request.
d. The Food, Conservation, and Energy Act of 2008 (H.R. 2419), enacted by
Congress in May 2008, converted the federal Renewable Energy Systems and
Energy Efficiency Improvements Program,* into the Rural Energy for
America Program (REAP). Similar to its predecessor, the REAP promotes
energy efficiency and renewable energy for agricultural producers and rural
small businesses through the use of (1) grants and loan guarantees for energy
efficiency improvements and renewable energy systems, and (2) grants for
energy audits and renewable energy development assistance. Congress has
allocated funding for the new program in the following amounts: $55 million
for FY 2009, $60 million for FY 2010, $70 million for FY 2011, and $70
million for FY 2012. REAP is administered by the U.S. Department of
Agriculture (USDA). In addition to these mandatory funding levels, up to $25
million in discretionary funding may be issued each year. The American
Taxpayer Relief Act of 2012 (H.R. 8) extended discretionary funding for FY
2013. The 2014 Farm Bill reauthorized the USDA to offer these programs and
removed the mandate to offer grants for feasibility studies.
e. * The Renewable Energy Systems and Energy Efficiency Improvements
Program was created by the USDA pursuant to Section 9006 of the 2002
federal Farm Security and Rural Investment Act of 2002. Funding in the
amount of $23 million per year was appropriated for each fiscal year from FY
2003-2007. In March 2008, the USDA announced that it would accept $220.9
million in applications for grants, loan guarantees, and loan/grant
combination packages under the Renewable Energy Systems and Energy
Efficiency Improvements Program. The application deadline was June 16,
2008.

30
f.    **Land grant colleges and universities are referred to above as "schools"
and "institutions". It is important to note that K-12 schools are not eligible for
this grant.
8. USDA- High Energy Cost Grant Program
a. NOTE: The most recent solicitation for this program closed August 1, 2014.
Please check the program website for information on future solicitations.
b. The U.S. Department of Agriculture (USDA) offers an ongoing grant program
for the improvement of energy generation, transmission, and distribution
facilities in rural communities. This program began in 2000. Eligibility is
limited to projects in communities that have average home energy costs at
least 275% above the national average. Individuals, non-profits, commercial
entities, state and local governments (including any agency or instrumentality
thereof), and tribal governments are eligible for this grant. Individuals must
work on a project that will benefit the community in order to qualify. Under
the most recent solicitation for projects, a total of $7 million was available for
qualifying projects. Under this solicitation grants ranging from $50,000 to $3
million were available for a variety of activities, including:
i. Electric generation, transmission, and distribution facilities;
ii. Natural gas or petroleum storage or distribution facilities;
iii. Renewable energy facilities used for on-grid or off-grid electric power
generation, water or space heating, or process heating and power;
iv. Backup up or emergency power generation or energy storage
equipment; and
v. Weatherization of residential and community property, or other energy
efficiency or conservation programs.
c. This grant program is not limited to renewable energy or energy conservation
and efficiency measures, but these measures are eligible for this grant
program.
9. Georgia Green Loans Save and Sustain Program
a. Georgia Green Loans, a non-profit microlending agency, offers funding to
"green" businesses using funding from a Georgia Environmental Finance
Authority (GEFA) grant. The GEFA grant is based on State Energy Program
funding from The American Recovery and Reinvestment Act of 2009
(ARRA). Georgia Green Loans is using this funding for the "Save & Sustain"
program to subsidize commercial energy audits for Georgia small businesses
and commercial property owners, and to provide low-interest loans for
energy-efficient improvements. Georgia Green Loans will cover most of the
costs for commercial energy audits through a select group of energy auditing
partners, allowing businesses to inform decisions on energy efficiency

31
improvements. Loan amounts range from $500 to $35,000 and loans may be
used for a variety of technologies, including HVAC systems, insulation, and
Energy Star appliances. The maximum term of the loan is five years. Loans
are available to renewable energy and energy efficiency businesses, in
addition to other types of "green" businesses.
10. Biomass Sales and Use Tax Exemption
a. Georgia enacted legislation in April 2006 (HB 1018) creating an exemption
for biomass materials from the state's sales and use taxes. The term "biomass
material" is defined as "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." To qualify for the exemption, the
biomass material must be utilized in the production of energy, including the
production of electricity, steam, or both electricity and steam. Pellets and fuels
derived from biomass are generally eligible. Energy produced from biomass
material must be sold.
11. TVA- Mid-Sized Renewable Standard Offer Program
a. The Tennessee Valley Authority (TVA) now compliments the small
generation Green Power Providers Program by providing incentives for mid-
sized renewable energy generators between 50kW and 20MW to enter into
long-term price contracts. The goal for total production from all participants is
100MW, with no more than 50MW from any one renewable technology. The
Renewable Standard Offer program also includes Solar Solution
Initiative program that offers additional financial incentives for Solar
Photovoltaic (PV) projects. TVA bases the standard offer for customer
generators off of a seasonal time-of-day averages chart, which sets base prices
for the term of the contract. For projects approved after January 2015, prices
increase at a rate of 5% per year beginning in 2016 and may be changed with
90 days’ notice by TVA (no more than 1% per year). For 2015, the average
price is expected range between $0.029/kWh during low demand periods to
$0.051/kWh during high demand periods. Learn more about pricing here.
Generation is recorded monthly through metering equipment installed by
TVA and paid for by the participant. All energy output, Renewable Energy
Credits (RECs), or other environmental attributes from installations under this
program belong to TVA, and all marketing of the program should indicate that
TVA (not the power seller) consumes all of the energy from these renewable
energy projects. Biomass, Wind, or Photovoltaics can be interconnected

32
through either TVA's transmission system or partners' distribution systems
under 10, 15, or 20 year contracts. Biomass should co-fire 50% or more with
the fuel consumption content approved by TVA and separately metered. The
remainder of the biomass production can be purchased through the TVA's
Dispersed Power Production Program. Before approval, the seller must
provide TVA with project financing arrangements, interconnection
agreements between the seller and either TVA or a Distributor, and TVA
metering installation plans at an environmentally acceptable location. The
participating power producer is responsible for interconnection, performance
assurance, and application costs. TVA, or an approved third party, will also
perform an environmental review at the seller’s cost.
12. Sawnee EMC- Commercial Energy Efficiency Rebate Program
a. Sawnee EMC provides a variety of rebates for commercial customers who
wish to upgrade the energy efficiency of eligible facilities. If recommended by
a Sawnee Commercial Marketing Representative (CMR), commercial
customers can receive rebates for the installation of high efficiency lighting,
solar film window tinting, energy management systems and equipment
upgrades that result in peak demand reduction. To receive this rebate, the
CMR must inspect the facility both before and after the equipment
installation. All Sawnee EMC requirements must be met in order to receive
rebate. Check web site for certain rebate applications and contact Sawnee
EMC to receive more precise instructions and requirements for the program.
13. TVA- Solar Solutions Initiative
a. Solar Solutions Initiative (SSI) is a pilot program that offers additional
financial incentives for Solar PV systems participating in the Renewable
Standard Offer program. Applications for new projects for the year 2015 will
open on January 2, 2015. Participants applying for the Solar Solutions
Incentive program are required to apply through the Renewable Standard
Offer program. The program offers performance-based incentive of
$0.04/kWh for the first 10 years after the project is operational. This incentive
is additional to the seasonal and time-of-day price for electricity offered
through the Renewable Standard Offer program. The total capacity for the
program for the year 2015 is capped at 20 MW with set aside of 12 MW for
traditional SSI participants, 4 MW for projects between 50kW- 200kW and
4MW for local power company participants. Aside from the 2015 capacity of
20MW, the program has offered total cumulative capacity of 36MW since its
inception in 2012.
14. Georgia Power- Commercial Energy Efficiency Rebate Program
a. Georgia Power offers rebates to all new and existing commercial customers
on an eligible commercial rate plan. Incentives are available for lighting,

33
heating and cooling equipment, reflective roofing, food service equipment,
refrigeration equipment, water heating measures and others. Custom options
are also available.
15. TVA- Energy Right Solutions for Business
a. TVA offers the Energy Right Solutions Program to commercial and industrial
facilities. In addition to prescriptive rebates for lighting, motors, HVAC, and
kitchen equipment, administrators take a custom baseline of pre-installation
demand and compare to post installation measurements to determine the
financial incentive amount in kilowatt-hour values. The incentives program is
offered along with complimentary energy assessments and reviews to
determine potential areas for savings. Customers can work with designers and
installers to develop a project plan and complete a participation application
form. Participants should receive a pre-installation incentive notification letter
before removing any existing equipment.
North Carolina (back to top)
1. USDA- Biorefinery Assistance Program
a. USDA Rural Development is offering loan guarantees for the development,
construction, and retrofitting of commercial-scale biorefineries. Eligible
borrowers include individuals, entities, Indian tribes, state or local
governments, corporations, farm cooperatives or farm cooperative
organizations, associations of agricultural producers, National Laboratories,
institutions of higher education, rural electric cooperatives, public power
entities, and consortium of any of these types of entities. Financed entities
must provide at least 20% of the financing for eligible project costs, and
applications for funding must include an independent feasibility study and
technical assessment. Eligible project costs include the purchase and
installation of equipment, construction or retrofitting costs, permit and
licensing fees, working capital, land acquisition, and the costs of financing.
The project must meet the following requirements:
i. Must be for the development and construction or the retrofitting of a
commercial-scale biorefinery using an eligible technology
ii. Must use an eligible feedstock for the production of advanced biofuels
and biobased products
iii. The majority of the production must be an advanced biofuels
b. Eligible advanced biofuels include:
i. Biofuel derived from cellulose, hemicellulose, or lignin, or other fuels
derived from cellulose
ii. Biofuel derived from sugar, starch, excluding ethanol derived from
corn kernel starch

34
iii. Biofuel derived from waste material, including crop residue,
vegetative waste material, animal waste, food waste, and yard waste
iv. Diesel fuel derived from renewable biomass, including vegetable oil
and animal fat
v. Biogas, including landfill gas and sewage waste treatment gas,
produced through the conversion of organic matter from renewable
biomass
c. In 2014, "renewable chemicals” and "biofuels" were added to this program
under the name of Biorefinery, Renewable Chemical, and Biobased Product
Manufacturing Assistance Program to provide guaranteed loans for the
development and construction of commercial-scale biorefineries or for the
retrofitting of existing facilities using eligible technology for the development
of advanced biofuels.
d. Congress allocated $75 million for FY 2009 and $245 million for FY 2010, in
addition to up to $150 million in discretionary funds annually beginning in FY
2009. The American Taxpayer Relief Act of 2012 extended discretionary
funding through FY 2013. For FY 2014, approximately $76 million in carry
over budget will support a program level of approximately $181 million.
Commission 61400-1, 61400-12, and 61400-11 (IEC)
b. The federal business energy investment tax credit available under 26 USC §
48 was expanded significantly by the Energy Improvement and Extension Act
of 2008 (H.R. 1424), enacted in October 2008. This law extended the duration
-- by eight years -- of the existing credits for solar energy, fuel cells and
microturbines; increased the credit amount for fuel cells; established new
credits for small wind-energy systems, geothermal heat pumps, and combined
heat and power (CHP) systems; allowed utilities to use the credits; and
allowed taxpayers to take the credit against the alternative minimum tax
(AMT), subject to certain limitations. The American Recovery and
Reinvestment Act of 2009, enacted in February 2009, further expanded the
credit. In general, the following credits are available for eligible systems
placed in service on or before December 31, 2016*:
i. Solar. The credit is equal to 30% of expenditures, with no maximum

35
solar lighting systems, which use solar energy to illuminate the inside
of a structure using fiber-optic distributed sunlight, are eligible.
Passive solar systems and solar pool-heating systems are not eligible.
ii. Fuel Cells. The credit is equal to 30% of expenditures, with no
maximum credit. However, the credit for fuel cells is capped at $1,500
per 0.5 kilowatt (kW) of capacity. Eligible property includes fuel cells
with a minimum capacity of 0.5 kW that have an electricity-only
generation efficiency of 30% or higher. (Note that the credit for
property placed in service before October 4, 2008, is capped at $500
per 0.5 kW.)
iii. Small Wind Turbines. The credit is equal to 30% of expenditures, with
no maximum credit for small wind turbines placed in service after
December 31, 2008. Eligible small wind property includes wind
turbines up to 100 kW in capacity. (In general, the maximum credit is
$4,000 for eligible property placed in service after October 3, 2008,
and before January 1, 2009. The American Recovery and Reinvestment
Act of 2009 removed the $4,000 maximum credit limit for small wind
turbines.) Small wind turbines must meet the performance and quality
standards set forth by either the American Wind Energy Association
Small Wind Turbine Performance and Safety Standard 9.1-2009
(AWEA), or the International Electrotechnical Commission 61400-1,
61400-12, and 61400-11 (IEC)
iv. Geothermal Systems. The credit is equal to 10% of expenditures, with
no maximum credit limit stated. Eligible geothermal energy property
includes geothermal heat pumps and equipment used to produce,
distribute or use energy derived from a geothermal deposit. For
electricity produced by geothermal power, equipment qualifies only up
to, but not including, the electric transmission stage. For geothermal
heat pumps, this credit applies to eligible property placed in service
after October 3, 2008. Note that the credit for geothermal property,
with the exception of geothermal heat pumps, has no stated expiration
date.
v. Microturbines. The credit is equal to 10% of expenditures, with no
maximum credit limit stated (explicitly). The credit for microturbines
is capped at $200 per kW of capacity. Eligible property includes
microturbines up to two megawatts (MW) in capacity that have an
electricity-only generation efficiency of 26% or higher.
vi. Combined Heat and Power (CHP). The credit is equal to 10% of

36
generally includes systems up to 50 MW in capacity that exceed 60%
energy efficiency, subject to certain limitations and reductions for
large systems. The efficiency requirement does not apply to CHP
2008.
c. In general, the original use of the equipment must begin with the taxpayer, or
professional regarding how to calculate this federal tax credit.
d. * A number of changes to this credit are scheduled to take effect for systems
placed in service after December 31, 2016. The credit for 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 will decrease from 30% to
10%. The credit for geothermal heat pumps, hybrid solar lighting, small wind,
fuel cells, microturbines, and combined heat and power systems will expire.
The credit amount for equipment, which uses geothermal energy to produce
3. Renewable Energy Tax Credit (Corporate)
a. Note: Senate Bill 372, signed in April 2015, provides a delayed sunset of the
tax credit for projects that meet certain criteria. See below for more
information.
b. North Carolina offers a tax credit equal to 35% of the cost of eligible
renewable energy property constructed, purchased or leased by a taxpayer and
placed into service in North Carolina during the taxable year. The credit has
been amended several times since its original inception. House Bill 512 of
2009 extended the eligibility to geothermal equipment, extended the
expiration date to December 31, 2015, and allowed the credit to be taken
against the Gross Premiums Tax. HB 1829 of 2010 further extended this
credit to combined heat and power systems. The credit is subject to various
ceilings depending on sector and the type of renewable-energy system. The
following credit limits for various technologies and sectors apply:

37
i. A maximum of $3,500 per dwelling unit for active solar space heating,
combined active solar space and domestic water-heating systems, and
passive solar space heating used for a non-business purpose;
ii. A maximum of $1,400 per installation for solar water-heating systems,
including solar pool-heating systems used for a non-business purpose;
iii. A maximum of $8,400 for geothermal heat pumps and geothermal
equipment that uses geothermal energy for water heating or active
space heating or cooling used for a non-business purpose;
iv. A maximum of $10,500 per installation for photovoltaic systems (also
known as PV systems or solar-electric systems), wind-energy systems,
combined heat and power systems, or certain other renewable-energy
systems used for a non-business purpose
v. A maximum of $2.5 million* per installation for all solar, wind, hydro,
geothermal, combined heat and power (as defined by Section 48 of the
U.S. Tax Code), and biomass applications** used for a business
purpose***, including PV, daylighting, solar water heating and space-
heating technologies.
c. Renewable-energy equipment expenditures eligible for the tax credit include
the cost of the equipment and associated design; construction costs; and
installation costs less any discounts, rebates, advertising, installation-
assistance credits, name-referral allowances or other similar reductions
provided by public funds. SB 388 of 2010 clarified that federal grants made
available by Section 1603 of the American Recovery and Reinvestment Tax
Act of 2009 do not constitute public funds. The allowable credit may not
exceed 50% of a taxpayer's state tax liability for the year, reduced by the sum
of all other state tax credits. Qualifying renewable-energy systems used for a
non-business purpose must take the maximum credit amount allowable for the
tax year in which the system is installed. For all other taxpayers, the credit is
taken in five equal installments beginning with the year in which the property
is placed in service. If the credit is not used entirely in the first year (for non-
business systems) or during the first five years (for business systems), the
remaining amount may be carried over for the next five years. The credit can
be taken against franchise tax, corporate tax, income tax, or in the case of
insurance companies, against the gross premiums tax.
d. SB 3 of 2007 amended North Carolina's renewable energy tax credit statute to
allow a taxpayer who donates money to a tax-exempt nonprofit to help fund a
renewable energy project to claim a tax credit. The donor may claim a share
of the credit -- proportional to the project costs donated -- that the nonprofit
could claim if the organization were subject to tax. HB 2436 of 2008 applied

38
this same mechanism to donations made to units of state and local
governments.
e. The tax credit is scheduled to expire on December 31, 2015. SB 372, signed in
April 2015, provides a delayed sunset of December 31, 2016 for projects that
meet certain criteria. Projects with a total size of less than 65 MW, can qualify
for the delayed sunset if it incurred 80% of its costs and completed 80% of the
construction by December 31, 2015. Projects with a total size of 65 MW or
greater, can qualify for the delayed sunset if it incurred 50% of its costs and
completed 50% of the construction by December 31, 2015. The legislation
provides further stipulations about certain documentation and application fees
that must be provided in order to qualify.
f. * House Bill 1973 of 2010 specified that systems installed for business
purposes at a site that has been certified as an eco-industrial park by the
Secretary of Commerce are subject to a higher tax credit cap of $5 million.
Section 5.1 of the bill describes the characteristics required to be deemed an
eco-industrial park.
g. ** The N.C. Tax Credit Guidelines and relevant North Carolina statutes
provide a description of the types of biomass and biomass applications that
are eligible for the tax credit. (See links above.) Note that residential wood
burning stoves do not qualify for this tax credit.
h. ***HB 1829 of 2010 states "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."
January 1, 2017.

39
Wind $0.023/kWh
Closed-Loop
Biomass
$0.023/kWh
Municipal Solid
Waste
$0.011/kWh
Qualified
Hydroelectric
$0.011/kWh
Marine and
Hydrokinetic
$0.011/kWh
i. open-loop biomass, geothermal, small irrigation hydro, landfill gas,

40
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 5-year
period, and
ii. open-loop biomass facilities placed in service before October 22,
4933.
f. The Tax Increase Prevention Act of 2014 (H.R. 5771, Sec. 155) extended both
the PTC and permission for PTC-eligible facilities to claim the Investment
Tax Credit in lieu of the PTC through the end of 2014. (Prior to the
legislation, the PTC had expired December 31, 2013.) Although not enacted
until December 2014, the effective date is January 1, 2014, meaning any
qualifying project that commenced construction at any point in 2014 is
eligible to claim the PTC. The American Taxpayer Relief Act of 2012 revised
the PTC by removing "placed in service" deadlines and replacing them with
deadlines that use the commencing of construction as a basis for determining
facility eligibility. It also contained language revising the definition of the
term "municipal solid waste" to exclude "paper that is commonly recycled and
which has been segregated from other solid waste.” The definition change for
municipal solid waste applies to electricity produced and sold after the
enactment date of the legislation (January 2, 2013) in taxable years ending
after that date.

41
Notice 2013-29 provides several examples of actions that constitute work of a
i. for a facility that produces electricity from a wind turbine, the
foundation;
ii. physical work on a custom-designed transformer that steps up the
voltage of electricity produced at the facility to the voltage needed for
transmission; and
iii. beginning construction of roads integral to the activity performed by
i. Safe Harbor with respect to a facility is demonstrated by showing that 5% or
January 1, 2015 (Notice 2014-46)
5. NC GreenPower Production Incentive
a. Note: As of March 26, 2015, NC GreenPower has imposed an annual
program cap of 100 kW for small PV systems.
b. NC GreenPower, a statewide green power program designed to encourage the
use of renewable energy in North Carolina, offers production payments for
grid-tied electricity generated by solar, wind, small hydro (10 megawatts or
less) and biomass resources. Payment arrangements for electricity generated
by most renewable energy systems may be available by submitting proposals

SCPT Incentives Summaries Whitepaper

SCPT Incentives Summaries Whitepaper

Recommended

Recommended

More Related Content

What's hot

What's hot (17)

Similar to SCPT Incentives Summaries Whitepaper

Similar to SCPT Incentives Summaries Whitepaper (20)

SCPT Incentives Summaries Whitepaper