RESIDENTIAL RENEWABLE ENERGY TAX CREDIT This tax credit provides incentives for homeowners to invest in small-scale renewable energy systems and equipment. This credit applies to solar electric, solar water heating, fuel cells, small wind energy, and geothermal heat pump systems. This 30% tax credit applies to expenditures made from January 1, 2006 through December 31, 2016. For expenditures made before January 1, 2009, there is a 30% tax credit with a maximum of $2,000 to $4,000 depending on the technology (for more details, go to: Navigate1. notlong.com. There is no credit limit for expenditures made after that date, with the exception of fuel cell systems, which qualify for a credit of up to $500 per 0.5kW, regardless of the installation date. This program allows you to carry over remaining credit to the next tax year if your total credit exceeds your federal tax liability. For this and all incentive programs, familiarize yourself with program requirements before making investments in a particular system. IMPORTANT! If you receive additional funding (which is non-taxable) for your system, you must exclude that amount from you total expenditures when claiming this credit. To claim this credit See pages
Use IRS form 5965. Download at Navigate1.notlong.com. 44-68 for more information on these renewable energy technologies and examples of your money-saving potential. See pages 28-43 for information about energy conservation subsidies available in Oregon.
RESIDENTIAL ENERGY CONSERVATION SUBSIDY EXCLUSION Personal & Corporate Any energy conservation subsidies provided by public utilities are nontaxable income. The IRS Code states, “Gross income shall not include the value of any subsidy provided (directly or indirectly) by a public utility to a customer for the purchase or installation of any energy conservation measure.� If you are considering using this provision for rebates you plan to receive on any renewable energy system, first consult your tax preparer to be sure all requirements and qualifications are met.
See pages
44-68 for more information on residential scale renewable energy systems. See the tables on pages 26-27 and 62 for subsidies and rebates available in your area.
ALTERNATIVE FUEL INFRASTRUCTURE TAX CREDIT This federal tax credit is available for up to 30% of the cost of installing alternative fueling equipment for natural gas, liquefied petroleum gas, hydrogen, electricity, E85, or diesel fuel blends containing a minimum of 20% biodiesel. The maximum credit for installing alternative fueling equipment at home for your own use is $1,000. The maximum credit for a business is $30,000. If you are a fuel station owner and you install alternative fueling equipment at multiple sites, you are allowed to use the credit for each location. Equipment that you put into service between January 1, 2006 and December 1, 2010 is eligible. Hydrogen fueling property is eligible through 2014.
To claim this credit
Use IRS form 8911. Download at Navigate2.notlong.com.
NOTE: Incentive programs and specific incentive dollar amounts may change at any time.
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