FEDERAL INCENTIVES FOR BUSINESSES

Updates @ the Alternative Fuels & Advanced Vehicles Data Center's Incentives & Laws Page

 

Advanced Biofuel Production Grants and Loan Guarantees

The Biorefinery Assistance Program (Section 9003) provides loan guarantees for the development, construction, and retrofitting of commercial-scale biorefineries that produce advanced biofuels. Grants for demonstration scale biorefineries are also available.Advanced biofuel is defined as fuel derived from renewable biomass other than corn kernel starch. Eligible applicants include, but are not limited to, individuals, state or local governments, farm cooperatives, national laboratories, institutions of higher education, and rural electric cooperatives. The maximum loan guarantee is $250 million and the maximum grant funding is 50% of project costs. For more information, see the Biorefinery Assistance Program website. Point of Contact: Office of Rural Development, U.S. Department of Agriculture, Phone: (202) 690-4730 

 

Advanced Biofuel Production Payments

Through the Bioenergy Program for Advanced Biofuels (Section 9005), eligible producers of advanced biofuels, or fuels derived from renewable biomass other than corn kernel starch, may receive payments to support expanded production of advanced biofuels. Payment amounts will depend on the quantity and duration of production by the eligible producer; the net nonrenewable energy content of the advanced biofuel, if sufficient data is available; the number of producers participating in the program; and the amount of funds available. No more than 5% of the funds will be made available to eligible producers with an annual refining capacity of more than 150,000,000 gallons of advanced biofuel. For more information, see the Bioenergy Program for Advanced Biofuels website and contact the appropriate State Rural Development Office. (Reference 7 U.S. Code 8105) Point of Contact: Office of Rural Development, U.S. Department of Agriculture, Phone: (202) 690-4730

 

Advanced Energy Research Project Grants

The Advanced Research Projects Agency - Energy (ARPA-E) was established within the U.S. Department of Energy with the mission to fund projects that will develop transformational technologies that reduce the nation's dependence on foreign energy imports; reduce U.S. energy related emissions, including greenhouse gases; improve energy efficiency across all sectors of the economy; and ensure that the U.S. maintains its leadership in developing and deploying advanced energy technologies. The ARPA-E focuses on various concepts in multiple program areas including, but not limited to, vehicle technologies, biomass energy, and energy storage. For more information, visit the ARPA-E website.  Point of Contact: U.S. Department of Energy, Phone: (800) 342-5363, Fax: (202) 586-4403 http://www.energy.gov 

Advanced Technology Vehicle (ATV) Manufacturing Incentives

Through the Advanced Technology Vehicles Manufacturing Loan Program, ATV and ATV componenets manufacturers may be eligible for direct loans for up to 30% of the cost of re-equipping, expanding, or establishing manufacturing facilities in the U.S. used to produce qualified ATVs or ATV components. Qualified ATVs are light-duty vehicles or ultra-efficient vehicles that meet specified federal emission standards and fuel economy requirements. Ultra-efficient vehicles are fully closed compartment vehicles, designed to carry at least two adult passengers, that achieve at least 75 miles per gallon while operating on gasoline or diesel fuel, as hybrid electric vehicles operating on gasoline or diesel fuel, or as fully electric vehicles. Qualified components must be designed for ATVs and installed for the purpose of meeting ATV performance requirements, as determined by the U.S. Department of Energy. See the ATV loan program website. Point of Contact: U.S. Department of Energy, Phone: (800) 342-5363, Fax: (202) 586-4403 http://www.energy.gov  

 

Alternative Fuel Infrastructure Tax Credit

A tax credit is available for the cost of alternative fueling equipment placed into service after December 31, 2005. Qualified alternative fuels are natural gas, liquefied petroleum gas, hydrogen, electricity, E85, or diesel fuel blends containing a minimum of 20% biodiesel. The credit amount is up to 30% of the cost, not to exceed $30,000. Equipment placed into service in 2009 and 2010 may receive a credit in the amount of 50% of eligible costs not to exceed $50,000. Fueling station owners who install qualified equipment at multiple sites are allowed to use the credit towards each location. Consumers who purchase qualified residential fueling equipment may receive a tax credit of up to $1,000. The maximum credit amount for hydrogen fueling equipment placed into service before January 1, 2015, is $200,000. Under current law, the credit expires December 31, 2011, for all other eligible fuel types. Unused credits that qualify as general business tax credits, as defined by the Internal Revenue Service (IRS), may be carried backward one year and carried forward 20 years. For more information, see IRS Form 8911 and/or Form 3800, which are available via the IRS website. Point of Contact: U.S. Internal Revenue Service. Phone: (800) 829-1040 http://www.irs.gov/ 

 

Alternative Fuel Excise Tax Credit

A tax incentive is available for alternative fuel that is sold for use or used as a fuel to operate a motor vehicle. A tax credit in the amount of $0.50 per gallon is available for the following alternative fuels: compressed natural gas (based on 121 cubic feet), liquefied natural gas, liquefied petroleum gas, P-Series fuel, liquid fuel derived from coal through the Fischer-Tropsch process, and compressed or liquefied gas derived from biomass. For an entity to be eligible to claim the credit they must be liable for reporting and paying the federal excise tax on the sale or use of the fuel in a motor vehicle. Tax exempt entities such as state and local governments that dispense qualified fuel from an on-site fueling station for use in vehicles qualify for the incentive. Eligible entities must be registered with the Internal Revenue Service (IRS). The incentive must first be taken as a credit against the entity's alternative fuel tax liability; any excess over this fuel tax liability may be claimed as a direct payment from the IRS. The tax credit is not allowed if an incentive for the same alternative fuel is also determined under the rules for the ethanol or biodiesel tax credits. For more information, see IRS Publication 510 and IRS Forms 637, 720, 4136, and 8849, which are available via the IRS website. Under current law, this incentive expires December 31, 2011. The U.S. Internal Revenue Service (IRS) has issued special guidance to allow a 180-day period for the submission of a one-time claim for 2010 credits. Please refer to IRS Notice 2011-10 for additional information. See IRS Notice for Claiming Biodiesel and Alternative Fuels Excise Tax Credit. Point of Contact: Excise Tax Branch, U.S. Internal Revenue Service Office of Chief Counsel. Phone: (202) 622-3130 http://www.irs.gov/ 

 

Alternative Fuel Mixture Excise Tax Credit

An alternative fuel blender that is registered with the Internal Revenue Service (IRS) may be eligible for a tax incentive on the sale or use of the alternative fuel blend (mixture) for use as a fuel in the blender's trade or business. The credit is in the amount of $0.50 per gallon of alternative fuel used to produce a mixture containing at least 0.1% gasoline, diesel, or kerosene. Qualified alternative fuels are: compressed natural gas (based on 121 cubic feet), liquefied natural gas, liquefied petroleum gas, P-Series fuel, liquid fuel derived from coal through the Fischer-Tropsch process, and compressed or liquefied gas derived from biomass. The incentive must first be taken as a credit against the blender's alternative fuel tax liability; any excess over this fuel tax liability may be claimed as a direct payment from the IRS. The tax credit is not allowed if an incentive for the same alternative fuel is also determined under the rules for the ethanol or biodiesel tax credits. For more information, see IRS Publication 510 and IRS Forms 637, 720, 4136, and 8849, which are available via the IRS website. Under current law, this incentive expires December 31, 2011. The U.S. Internal Revenue Service (IRS) has issued special guidance to allow a 180-day period for the submission of a one-time claim for 2010 credits. Please refer to IRS Notice 2011-10 for additional information. Point of Contact: Excise Tax Branch, U.S. Internal Revenue Service Office of Chief Counsel. Phone: (202) 622-3130. http://www.irs.gov/ 

 

Alternative Fuel Tax Exemption

Alternative fuels used in a manner that the Internal Revenue Service (IRS) deems as nontaxable are exempt from federal fuel taxes. Common nontaxable uses in a motor vehicle are: on a farm for farming purposes; in certain intercity and local buses; in a school bus; exclusive use by a nonprofit educational organization; and exclusive use by a state, political subdivision of a state, or the District of Columbia. This exemption is not available to tax exempt entities that are not liable for excise taxes on transportation fuel. For more information, see IRS Publication 510, which is available via the IRS website. Point of Contact: Excise Tax Branch, U.S. Internal Revenue Service Office of Chief Counsel. Phone: (202) 622-3130 http://www.irs.gov/ 

 

Biobased Transportation Research Funding

The Surface Transportation Research, Development, and Deployment (STRDD) program funds activities to promote innovation in transportation infrastructure, services, and operations. A portion of the funding made available to the STRDD program is set aside for the Biobased Transportation Research program to carry out biobased research of national importance at research centers and through the National Biodiesel Board. For more information, see the STRDD Program fact sheet. Point of Contact: Federal Highway Administration, U.S. Department of Transportation.

 

Biodiesel Education Grants

Competitive grants are available through the Biodiesel Fuel Education Program (Section 9006) to educate governmental and private entities that operate vehicle fleets, the public, and other interested entities about the benefits of biodiesel fuel use. Eligible applicants are nonprofit organizations or institutes of higher education that have demonstrated knowledge of biodiesel fuel production, use, or distribution; and have demonstrated the ability to conduct educational and technical support programs. Point of Contact: Office of Rural Development, U.S. Department of Agriculture. Phone: (202) 690-4730. http://www.rurdev.usda.gov/ 

 

Biodiesel Income Tax Credit

A taxpayer that delivers pure, unblended biodiesel (B100) into the tank of a vehicle or uses B100 as an on-road fuel in their trade or business may be eligible for an incentive in the amount of $1.00 per gallon of biodiesel, agri-biodiesel, or renewable diesel. If the biodiesel was sold at retail, only the person that sold the fuel and placed it into the tank of the vehicle is eligible for the tax credit. The incentive is allowed as a credit against the taxpayer's income tax liability. Claims must include a copy of the certificate from the registered biodiesel producer or importer that: identifies the product; specifies the product's biodiesel, agri-biodiesel, and/or renewable diesel content; confirms that the product is properly registered as a fuel with the U.S. Environmental Protection Agency (EPA); and confirms that the product meets the requirements of ASTM specification D6751. Renewable diesel is defined as liquid fuel derived from biomass that meets EPA's fuel registration requirements and ASTM specifications D975 or D396; the definition of renewable diesel does not include any fuel derived from co-processing biomass with a feedstock that is not biomass. Under current law, this incentive expires December 31, 2011. For more information, see IRS Publication 510 and IRS Forms 637 and 8864, which are available via the IRS website. Point of Contact: Excise Tax Branch, U.S. Internal Revenue Service Office of Chief Counsel. Phone: (202) 622-3130 http://www.irs.gov/ 

 

Biodiesel Mixture Excise Tax Credit

A biodiesel blender that is registered with the Internal Revenue Service (IRS) may be eligible for a tax incentive in the amount of $1.00 per gallon of pure biodiesel, agri-biodiesel, or renewable diesel blended with petroleum diesel to produce a mixture containing at least 0.1% diesel fuel. Only blenders that have produced and sold or used the qualified biodiesel mixture as a fuel in their trade or business are eligible for the tax credit. The incentive must first be taken as a credit against the blender's fuel tax liability; any excess over this tax liability may be claimed as a direct payment from the IRS. Claims must include a copy of the certificate from the registered biodiesel producer or importer that: identifies the product; specifies the product's biodiesel, agri-biodiesel, and/or renewable diesel content; confirms that the product is properly registered as a fuel with the U.S. Environmental Protection Agency; and confirms that the product meets the requirements of ASTM specification D6751. Renewable diesel is defined as liquid fuel derived from biomass that meets EPA's fuel registration requirements and ASTM specifications D975 or D396; the definition of renewable diesel does not include any fuel derived from co-processing biomass with a feedstock that is not biomass. For more information, see IRS Publication 510 and IRS Forms 637, 720, 4136, 8849, and 8864, which are available via the IRS website. Under current law, this incentive expires December 31, 2011. The U.S. Internal Revenue Service (IRS) has issued special guidance to allow a 180-day period for the submission of a one-time claim for 2010 credits. Please refer to IRS Notice 2011-10 for additional information. Point of Contact: Excise Tax Branch, U.S. Internal Revenue Service Office of Chief Counsel. Phone: (202) 622-3130 http://www.irs.gov/ 

 

Biomass Research and Development Initiative

The U.S. Department of Agriculture's National Institute of Food and Agriculture, in conjunction with U.S. Department of Energy Office of Biomass Programs, provides grant funding for projects addressing research, development, and demonstration of biofuels and biobased projects and the methods, practices, and technologies for their production, under the Section 9008 Biomass Research and Development Initiative. The competitive award process focuses on three main technical areas: feedstock development; biofuels and biobased products development; and biofuels development analysis. Eligible applicants are institutions of higher learning, national laboratories, federal research agencies, private sector entities, and nonprofit organizations. The non-federal share of the total project cost must be at least 20%. For more information, see the Biomass Research & Development website. Point of Contact: Office of Rural Development, U.S. Department of Agriculture. Phone: (202) 690-4730. http://www.rurdev.usda.gov/ 

 

Cellulosic Biofuel Producer Tax Credit

A cellulosic biofuel producer that is registered with the Internal Revenue Service (IRS) may be eligible for a tax incentive in the amount of up to $1.01 per gallon of cellulosic biofuel that is: sold and used by the purchaser in the purchaser's trade or business to produce a cellulosic biofuel mixture; sold and used by the purchaser as a fuel in a trade or business; sold at retail for use as a motor vehicle fuel; used by the producer in a trade or business to produce a cellulosic biofuel mixture; or used by the producer as a fuel in a trade or business. If the cellulosic biofuel also qualifies for alcohol fuel tax credits, the credit amount is reduced to $0.46 per gallon for biofuel that is ethanol and $0.41 per gallon if the biofuel is not ethanol. Cellulosic biofuel is defined as liquid fuel produced from any lignocellulosic or hemicellulosic matter that is available on a renewable basis, and meets U.S. Environmental Protection Agency fuel and fuel additive registration requirements. Alcohol with a proof of less than 150, fuel with a water or sediment content of more than 4%, and fuel with an ash content of more than 1% are not considered cellulosic biofuels. The incentive is allowed as a credit against the producer's income tax liability. Under current law, only qualified fuel produced in the U.S. between January 1, 2009, and December 31, 2012, for use in the U.S. may be eligible. For more information, see IRS Publication 510 and IRS Forms 637 and 6478, which are available via the IRS website. Point of Contact: Excise Tax Branch, U.S. Internal Revenue Service Office of Chief Counsel. Phone: (202) 622-3130. http://www.irs.gov/ 

 

Fuel Cell Motor Vehicle Tax Credit

A tax credit of up to $8,000 is available for the purchase of qualified light-duty fuel cell vehicles. After December 31, 2009, the credit is reduced to $4,000. Tax credits are also available for medium- and heavy-duty fuel cell vehicles; credit amounts are based on vehicle weight. Vehicle manufacturers must follow the procedures as published in Notice 2008-33 (PDF 30KB) in order to certify to the Internal Revenue Service that a vehicle meets certain requirements to claim the fuel cell vehicle credit. Notice 2008-33 also provides guidance to taxpayers about claiming the credit. For more information, see IRS Form 8910, which is available via the IRS website. This tax credit expires on December 31, 2014. Point of Contact: U.S. Internal Revenue Service. Phone: (800) 829-1040 http://www.irs.gov/ 

 

Hydrogen Fuel Excise Tax Credit

A tax credit of $0.50 per gallon is available for liquefied hydrogen that is sold for use or used as a fuel to operate a motor vehicle. For an entity to be eligible to claim the credit they must be liable for reporting and paying the federal excise tax on the sale or use of the fuel in a motor vehicle. Tax exempt entities such as state and local governments that dispense qualified fuel from an on-site fueling station for use in vehicles qualify for the incentive. Eligible entities must be registered with the Internal Revenue Service (IRS). The incentive must first be taken as a credit against the entity's alternative fuel tax liability; any excess over this fuel tax liability may be claimed as a direct payment from the IRS. Under current law, the credit for liquefied hydrogen expires after September 30, 2014. For more information, see IRS Publication 510 and IRS Forms 637, 720, 4136, and 8849, which are available via the IRS website. Point of Contact: Excise Tax Branch, U.S. Internal Revenue Service Office of Chief Counsel. Phone: (202) 622-3130. http://www.irs.gov/
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Hydrogen Fuel Mixture Excise Tax Credit
A tax credit of $0.50 per gallon is available for the sale or use of liquefied hydrogen used to produce a mixture containing a taxable fuel. To be eligible, an alternative fuel blender must be registered with the Internal Revenue Service (IRS). The incentive must be taken as a credit against the blender's alternative fuel tax liability. Any excess over this fuel tax liability may be claimed as a direct payment from the IRS. Under current law, the credit for liquefied hydrogen expires after September 30, 2014. For more information, see IRS Publication 510 and IRS Forms 637, 720, 4136, and 8849, which are available via the IRS website. Point of Contact: Excise Tax Branch, U.S. Internal Revenue Service Office of Chief Counsel. Phone: (202) 622-3130. http://www.irs.gov/ 

 

Idle Reduction Equipment Excise Tax Exemption

Qualified on-board idle reduction devices and advanced insulation are exempt from the federal excise tax imposed on the retail sale of heavy-duty highway trucks and trailers. The exemption also applies to the installation of qualified equipment on vehicles after the vehicles have been placed into service. For a list of eligible products and additional information about product exemption eligibility criteria, see the U.S. Environmental Protection Agency's (EPA) SmartWay Transport Idle Reduction website. The exemption applies to equipment that was determined by the Administrator of the EPA, in consultation with the Secretary of Energy and the Secretary of Transportation, to reduce the idling of the tractor at a motor vehicle rest stop or other location where such vehicles are temporarily parked or remain stationary. Only equipment sold on or after October 4, 2008, is eligible. For more information, see IRS Publication 510 and the instructions for IRS Form 720, which are available via the IRS website. Point of Contact: Excise Tax Branch, U.S. Internal Revenue Service Office of Chief Counsel. Phone: (202) 622-3130 http://www.irs.gov/ 

 

Improved Energy Technology Loans

The U.S. Department of Energy (DOE) provides loan guarantees through the Loan Guarantee Program (Program) to eligible projects that reduce air pollution and greenhouse gases, and support early commercial use of advanced technologies, including biofuels and alternative fuel vehicles. The Program is not intended for research and development projects. DOE may issue loan guarantees for up to 100% of the amount of the loan for an eligible project. For loan guarantees of over 80%, the loan must be issued and funded by the Treasury Department's Federal Financing Bank. For additional Program guidelines and solicitation announcements, please visit the Loan Guarantee Program website. Point of Contact: U.S. Department of Energy. Phone: (800) 342-5363 Fax: (202) 586-4403 http://www.energy.gov

 

Light-Duty Hybrid Electric Vehicle (HEV) and Advanced Lean Burn Vehicle Tax Credit

A tax credit is available for qualified light-duty HEVs and advanced lean burn technology vehicles placed in service after December 31, 2005. The Internal Revenue Service (IRS) must first acknowledge the manufacturers' certifications of qualified vehicles and credit amounts, which are determined using a formula that accounts for improved fuel economy and lifetime fuel savings potential. The credit begins to phase out in the second quarter following the calendar quarter in which at least 60,000 of a manufacturer's qualifying HEVs and/or lean burn passenger automobiles and light trucks have been sold. See the IRS Qualified Hybrid Vehicles and IRS Qualified Advanced Lean Burn Technology Vehicles websites for the current list of qualified vehicles, credits, phase-out schedules, and required forms. This tax credit expires December 31, 2010. Point of Contact: U.S. Internal Revenue Service Phone: (800) 829-1040 http://www.irs.gov/ 

 

Qualified Alternative Fuel Motor Vehicle (QAFMV) Tax Credit

A tax credit is available toward the purchase of QAFMVs, which may be either new, original equipment manufacturer vehicles or vehicles that have been repowered by an aftermarket conversion company to operate on an alternative fuel. Qualifying alternative fuels are those powered by natural gas, liquefied petroleum gas, hydrogen, and fuel containing at least 85% methanol. The vehicle must be placed in service as an alternative fuel vehicle on or after January 1, 2006. Unused credits that qualify as general business tax credits, as defined by the IRS, may be carried backward one year and carried forward 20 years. Vehicle manufacturers must follow the procedures as published in Notice 2006-54 in order to certify to the Internal Revenue Service (IRS) that a vehicle meets the requirements to claim the QAFMV credit and confirm the allowable credit with respect to that vehicle. See the IRS QAFMV website for the current list of qualified vehicles and credits. For more information, see IRS Form 8910, which is available via the IRS website. This tax credit expires December 31, 2010. Point of Contact: U.S. Internal Revenue Service Phone: (800) 829-1040 http://www.irs.gov/ 

 

Qualified Plug-In Electric Drive Motor Vehicle Tax Credit

A tax credit is available for the purchase of a new qualified plug-in electric drive motor vehicle that draws propulsion using a traction battery that has at least four kilowatt hours of capacity, uses an external source of energy to recharge the battery, has a gross vehicle weight rating of up to 14,000 pounds, and meets specified emission standards. The minimum credit amount is $2,500, and the credit may be up to $7,500, based on each vehicle's traction battery capacity and the gross vehicle weight rating. The credit will begin to be phased out for each manufacturer in the second quarter following the calendar quarter in which a minimum of 200,000 qualified plug-in electric drive vehicles have been sold by that manufacturer for use in the U.S. This tax credit applies to vehicles acquired after December 31, 2009. Through December 31, 2011, qualified plug-in electric vehicle conversions are also eligible for a tax credit for 10% of the conversion cost, not to exceed $4,000. Additionally, a tax credit of up to 10% of the cost of qualified low-speed electric vehicles, electric motorcycles, and three-wheeled electric vehicles, not to exceed $2,500, is available through December 31, 2011. Point of Contact: U.S. Internal Revenue Service Phone: (800) 829-1040 http://www.irs.gov/ 

 

Small Agri-Biodiesel Producer Tax Credit

A small agri-biodiesel producer that is registered with the Internal Revenue Service (IRS) may be eligible for a tax incentive in the amount of $0.10 per gallon of agri-biodiesel that is: sold and used by the purchaser in the purchaser's trade or business to produce an agri-biodiesel and diesel fuel mixture; sold and used by the purchaser as a fuel in a trade or business; sold at retail for use as a motor vehicle fuel; used by the producer in a trade or business to produce an agri-biodiesel and diesel fuel mixture; or used by the producer as a fuel in a trade or business. A small producer is one that has, at all times during the tax year, not more than 60 million gallons of productive capacity of any type of agri-biodiesel. Agri-biodiesel is defined as diesel fuel derived solely from virgin oils, including esters derived from corn, soybeans, sunflower seeds, cottonseeds, canola, crambe, rapeseeds, safflowers, flaxseeds, rice bran, mustard seeds, and camelina, and from animal fats; renewable diesel does not qualify for the credit. The incentive applies only to the first 15 million gallons of agri-biodiesel produced in a tax year is allowed as a credit against the producer's income tax liability. Under current law, this incentive expires December 31, 2011. For more information, see IRS Publication 510 and IRS Forms 637 and 8864, which are available via the IRS website. Point of Contact: Excise Tax Branch, U.S. Internal Revenue Service Office of Chief Counsel. Phone: (202) 622-3130 http://www.irs.gov/ 

 

Small Ethanol Producer Tax Credit

A small ethanol producer that is registered with the Internal Revenue Service (IRS) may be eligible for a tax incentive in the amount of $0.10 per gallon of ethanol that is: sold and used by the purchaser in the purchaser's trade or business to produce an ethanol fuel mixture; sold and used by the purchaser as a fuel in a trade or business; sold at retail for use as a motor vehicle fuel; used by the producer in a trade or business to produce an ethanol fuel mixture; or used by the producer as a fuel in a trade or business. A small producer is one that has, at all times during the tax year, not more than 60 million gallons of productive capacity of any type of alcohol. The incentive applies only to the first 15 million gallons of ethanol produced in a tax year and is allowed as a credit against the producer's income tax liability. Under current law, this incentive expires December 31, 2011. For more information, see IRS Publication 510 and IRS Forms 637 and 6478, which are available via the IRS website. Point of Contact: Excise Tax Branch, U.S. Internal Revenue Service Office of Chief Counsel. Phone: (202) 622-3130 http://www.irs.gov/ 

 

Value-Added Producer Grants (VAPG)

Value-Added Producer Grants (VAPG) are available to help independent agricultural producers enter into or expand value-added activities, including innovative uses of agricultural projects, such as biofuels production. Eligible applicants include independent producers, farmer and rancher cooperatives, agricultural producer groups, and majority-controlled producer-based business ventures. Participants may apply for either a planning grant or a working capital grant, but not both. In addition, no more than 10% of program funds may be awarded to majority-controlled producer-based business ventures. Grants are awarded to projects determined to be economically viable and sustainable. For more information about grant eligibility, see the VAPG website and contact the appropriate State Rural Development Office. Point of Contact: Office of Rural Development, U.S. Department of Agriculture Phone: (202) 690-4730 http://www.rurdev.usda.gov/

 

Volumetric Ethanol Excise Tax Credit (VEETC)

An ethanol blender that is registered with the Internal Revenue Service (IRS) may be eligible for a tax incentive in the amount of $0.45 per gallon of pure ethanol (minimum 190 proof) blended with gasoline. Only entitles that have produced and sold or used the qualified mixture as a fuel in their trade or business are eligible for the tax credit. The incentive must first be taken as a credit against the blender's fuel tax liability; any excess over this tax liability may be claimed as a direct payment from the IRS. Under current law, this incentive expires December 31, 2011. For more information, see IRS Publication 510 and IRS Forms 637, 720, 4136, 6478, and 8849, which are available via the IRS website. Point of Contact: Excise Tax Branch, U.S. Internal Revenue Service Office of Chief Counsel. Phone: (202) 622-3130 http://www.irs.gov/ 

 

RESIDENTIAL TAX INCENTIVES

Below is a listing of several Federal Tax Incentives for Energy Efficiency. For more information on how to claim the credits, please consult the Energy Star Website here.

10% of cost up to $500 or a specific amount from $50 - $300

The following incentives credit 10% of cost up to $500. Expiration Date: December 31, 2011. General Details: Must be an existing home & your principal residence. New construction and rentals do not qualify. Save your receipts and the Manufacturer's Certification Statement for your records. Installation costs not included.

1. Biomass Stoves: a biomass stove burns biomass fuel to heat a home or heat water. Biomass fuel includes agricultural crops and trees, wood and wood waste and residues (including wood pellets), plants (including aquatic plants), grasses, residues, and fibers. Tax Credit Amount: $300. Requirements: Thermal efficiency rating of at least 75%.
2. Natural Gas, Propane/ Oil Furnace: a furnace uses the combustion of fuel and air to create heat. Tax Credit Amount: $150. Requirements: AFUE greater than or equal to 95.
3. Gas, Propane or Oil Hot Water Boiler: these are heating units that use water circulated throughout the home in a system of baseboard heating units, radiators, and/or in-floor radiant tubing. Tax Credit Amount: $150. Requirements: AFUE greater than or equal to 95.
4. Central Air Conditioning (CAC): The best way to find tax credit eligible CACs is to ask your HVAC Contractor (Heating Ventilation and Air Conditioning). To verify tax credit eligibility, ask your HVAC contractor to provide the Manufacturer Certification Statement for the equipment you plan to purchase. Or, search the Manufacturer's website. Tax Credit Amount: $300. Requirements: SEER ≥ 16; EER ≥ 13 or Package systems: SEER ≥ 14; EER ≥ 12.
5. Air Source Heat Pumps: Heat pumps offer an energy-efficient alternative to furnaces and air conditioners in moderate climates. Like your refrigerator, heat pumps use electricity to move heat from a cool space into a warm, making the cool space cooler and the warm space warmer. During the heating season, heat pumps move heat from the cool outdoors into your warm house; during the cooling season, heat pumps move heat from your cool house into the warm outdoors. Because they move heat rather than generate heat, heat pumps can provide up to 4 times the amount of energy they consume. Tax Credit Amount: $300. Requirements for Split Systems: HSPF ≥ 8.5; EER ≥ 12.5; SEER ≥ 15. Requirements for Package systems: HSPF ≥ 8; EER ≥ 12; SEER ≥ 14
6. Advanced Air Circulating Fan: An Advanced Main Air Circulating Fan is an efficient fan, or blower motor which blows the air that your furnace heats up through the duct system. Tax Credit Amount: $50. Requirement: the AMCF must use no more than 2% of the furnace's total energy.
7. Insulation: adding adequate insulation is one of the most cost-effective home improvements that you can do. Tax Credit Amount: 10% of Cost, up to $500. Requirements: typical bulk insulation products can qualify, such as batts, rolls, blow-in fibers, rigid boards, expanding spray, and pour-in-place.
8. Roofs (Metals and Asphalts): qualified roof products reflect more of the sun's rays, which can lower roof surface temperature by up to 100F, decreasing the amount of heat transferred into your home. Tax Credit Amount: 10% of Cost, up to $500. Requirements: "Metal roofs with appropriate pigmented coatings" and "asphalt roofs with appropriate cooling granules" that also meet ENERGY STAR requirements.
9. Non-Solar Water Heaters: water heating can account for 14%–25% of the energy consumed in your home. Tax Credit Amount: $300. Requirements for Oil, Gas/ Propane Water Heaters: Energy Factor ≥ 0.82 OR a thermal efficiency of at least 90%. Requirements for Electric Heat Pump Water Heater: Energy Factor ≥ 2.0
10. Windows & Doors: Energy efficient windows, doors and skylights can reduce energy bills. Tax Credit Amount: 10% of the cost, up to $500, but windows are capped at $200. Requirements: tax credit does not apply to cost of installation.

30% of cost with no upper limit

 The following incentives provide tax credit of 30% of cost with no upper limit. Expiration Date: December 31, 2016. General Details: Applies to Existing homes & new construction qualify. Both principal residences and second homes qualify. Rentals do not qualify. Installation costs is included.

1. Geothermal Heat Pumps: Geothermal heat pumps are similar to ordinary heat pumps, but use the ground instead of outside air to provide heating, air conditioning and, in most cases, hot water. Because they use the earth's natural heat, they are among the most efficient and comfortable heating and cooling technologies currently available. Tax Credit Amount: 30% of cost. Installation cost included. Requirements for Closed Loop: EER ≥ 14.1; COP ≥ 3.3. Requirements for Open Loop: EER ≥16.2; COP ≥ 3.6. Requirements for Direct Expansion: EER ≥ 15; COP ≥ 3.5.
2. Small Wind Turbines for Residential Use: A wind turbine collects kinetic energy from the wind and converts it to electricity that is compatible with a home's electrical system. Tax Credit Amount: 30% of cost. Installation cost included. Requirements: Must have a nameplate capacity of no more than 100 kilowatts.
3. Solar Water Heaters: Solar water heaters come in a wide variety of designs, all including a collector and storage tank, and all using the sun's thermal energy to heat water. Solar water heaters are typically described according to the type of collector and the circulation system. Tax Credit Amount: 30% of cost. Installation cost included. Requirements: At least half of the energy generated by the "qualifying property" must come from the sun. The system must be certified by the Solar Rating and Certification Corporation (SRCC) or a comparable entity endorsed by the government of the state in which the property is installed. Note: The credit is not available for expenses for swimming pools or hot tubs. The water must be used in the dwelling. Photovoltaic systems must provide electricity for the residence, and must meet applicable fire and electrical code requirement.

30% of the cost, up to $500 per .5 kW of power capacity

The following incentive provides tax credit of 30% of the cost, up to $500 per .5 kW of power capacity. Expiration Date: December 31, 2016. General Details: Existing homes & new construction qualify. Must be your principal residence. Rentals and second homes do not qualify. Installation cost is included.

1. Fuel Cells and Micro-turbine System: Fuel cells are an important enabling technology for the hydrogen economy and have the potential to revolutionize the way we power our nation, offering cleaner, more-efficient alternatives to the combustion of gasoline and other fossil fuels. Tax Credit Amount: 30% of cost. Installation cost included. Requirements: Efficiency of at least 30% and must have a capacity of at least 0.5 kW.

 

A summary of Ohio laws and policies aimed at moving our state toward cleaner transportation solutions.  Click on the link for more information.

FUEL SIDE:

House Bill 245:

House Bill 54

 

TECHNOLOGY SIDE:

ODOT Clean Diesel Initiative:

 

PRACTICE SIDE:

HB 149 (historic tax credits):

 

Cleveland Model Idle Reduction Ordinance

 

Ohio Bicycling Federation