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 Incentive | System Size | |
| Fuel Cell | $1,500/ 0.5 kW | 0.5 kW or greater |
| Microturbines | $200/ kW | 2 MW or less |
| Small Wind Turbines | No limit | 100 kW or less |
| CHP | No limit | 50 MH or less |
| All Other Technologies | No 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
