Business Energy Investment Tax Credit (ITC)

Jurisdiction:
Federal
Incentive Type:Corporate Tax Credit
Industries:
Energy, Technology, Bio-fuel
Eligible Sector:
Business
Category:
Financial Incentive
Time Period:
FY 2015
Governing Body:U.S. Internal Revenue Service
What’s it worth?:30% of the capital investment

This is a corporate tax credit available to commercial, industrial, investor-owned utility, cooperative utilities, and agricultural businesses. Solar technologies, fuel cells, and small wind technologies can qualify for incentives up to to 30% of expenditures. Geothermal technologies, micro turbines and CHP may qualify for incentives of up to 10%. Maximum incentives and system size requirements include:

Max IncentiveSystem Size
Fuel Cell$1,500/ 0.5 kW0.5 kW or greater
Microturbines$200/ kW2 MW or less
Small Wind TurbinesNo limit100 kW or less
CHPNo limit50 MH or less
All Other TechnologiesNo limit

To claim this tax credit participants must fill out and submit a 3468 form from the IRS. To qualify for the program, the U.S. Department of Energy must provide recommendation and ranking for the project. Preliminary and final applications for DOE recommendation must be submitted followed by an application for certification by the service. Applications are to be mailed to the IRS and should include:

  • Name
  • Address
  • Taxpayer identification number
  • Affiliated groups
  • Affiliated groups information
  • Contact person’s name and information
  • Electronic version on a CD of DOE recommendation