RENEWABLE ELECTRICITY PRODUCTION TAX CREDIT (PTC) This corporate tax credit provides producers of energy from landfill gas, wind, biomass, hydroelectric, geothermal electric, municipal solid waste, hydrokinetic power, anaerobic digestion, small hydroelectric, tidal, wave, and ocean thermal systems with a per kilowatt hour tax credit. The amount of the credit depends on the type of technology employed and the number of years the system has been in service. The credit is 2.1¢/kWh for wind, closed-loop biomass, and geothermal systems and 1.0¢/kWh for other eligible technologies including open-loop biomass and hydropower, along with several other forms of biomass technology, for the first 10 years of operation. New wind systems must be placed in service by December 12, 2012 to qualify for this tax credit. All other renewable energy systems must be placed in service by December 31, 2013. The tax credit may also be reduced or completely eliminated depending on other types of credits (like the Business Energy Tax Credit, outlined above) that you may claim. Recent updates allow facilities that qualify for this tax credit to opt instead to take the Federal Business Energy Investment Tax Credit (ITC) or an equivalent cash grant from the U.S. Department of Treasury. To learn more about the restrictions associated with this tax credit, contact IRS Telephone Assistance for Businesses at 1-800-829-4933. See pages
44-68 for more information on renewable energy technologies.
MODIFIED ACCELERATED COST-RECOVERY SYSTEM (MACRS) and BONUS DEPRECIATION This federal program helps businesses recover investments in certain types of property through depreciation deductions. Solar, wind, geothermal, biomass, fuel cells, micro turbines, and solar hybrid lighting technologies are all potentially eligible for accelerated depreciation. Systems acquired and placed in service during 2008 or 2009 tax years also qualify for an additional 50% bonus depreciation, if certain criteria are satisfied. To see if you qualify for this cost-recovery and depreciation program, review the information and instructions provided in IRS Publication 946, Instructions for Form 4562, and use IRS Form 4562 to apply.
To claim this credit
Use IRS form 4562. Download at Navigate4.notlong.com.
SMALL ETHANOL PRODUCER TAX CREDIT This tax credit is available to small-scale ethanol producers (defined as those producing no more than 60 million gallons per year). Producers may qualify for a non-refundable federal income tax credit equal to $0.10 per gallon produced for the first 15 million gallons. That’s up to $1.5 million federal income tax credit annually for production of at least 15 million gallons. To qualify for this tax credit, first register with the IRS using IRS form 637 (download at Navigate5. notlong.com), Application for Registration (for Certain Excise Tax Activities), and then use IRS form 6478 to claim the credit.
To claim this credit
Use IRS form 6478. Download at Navigate6.notlong.com.
NOTE: Incentive programs and specific incentive dollar amounts may change at any time.
ENERG Y | ta x c r e d i ts : f e d e r a l
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