Take advantage of state and federal tax credits for energy efficiency.
Oregon Business Energy Tax Credits
Oregon Department of Energy offers the Business Energy Tax Credit to companies that invest in energy conservation, recycling, renewable energy resources and less-polluting transportation fuels.
Trade, business or rental property owners in Oregon are eligible for the tax credit of 35 percent of eligible costs for retrofit and new construction conservation projects. Qualifying renewable energy resource facilities including high efficiency combined heat and power facilities, and renewable energy manufacturing facilities completed on or after Jan. 1, 2007, are eligible for tax credit equal to 50 percent of eligible costs. Qualifying homebuilder installed renewable energy facilities completed on or after Jan. 1, 2007, are eligible for a tax credit of $9,000 and qualifying high performance homes completed on or after Jan. 1, 2007, are eligible for a $12,000 tax credit.
Public entities and nonprofits with no tax liability can take advantage of
Oregon Business Energy Tax Credits through the Pass-through Option. This allows a project owner to transfer the Business Energy Tax Credit project eligibility to a pass-through partner for a lump-sum cash payment. This option is also available to businesses with tax liability that chooses to use the Pass-through Option.
The Pass-through Option rate for five-year 35 percent Business Energy Tax Credits is 25.5 percent. The Pass-through Option rate for one-year 35 percent Business Energy Tax Credits (for projects with eligible costs of $20,000 or less) is 30.5 percent. The Pass-through Option rate for five-year 50 percent Business Energy Tax Credits is 33.5 percent. The Pass-through Option rate for one-year 50 percent Business Energy Tax Credits (for projects with eligible costs of $20,000 or less) is 43.5 percent. The pass-through rate for homebuilder installed renewable energy facilities and high performance home tax credits is 87 percent of the tax credit amount.
As an example of the Pass-Through Option, a nonprofit organization that installs $45,000 in eligible energy efficiency upgrades will receive a lump-sum payment equal to 25.5 percent of eligible costs from their Pass-Through partner, typically a local business. The Pass-Through partner then takes the 35 percent Business Energy Tax Credit over the five-year tax period.
The credit can cover costs directly related to the project, including the incremental cost of the equipment that is beyond standard practice, engineering and design, materials, supplies and installation. Loan fees and permits may also be claimed.
Learn more about Oregon Business Energy Tax Credits
To learn more, including deductions for homebuilders and appliance manufacturers, see the following resources:
Database of State Incentives for Renewables & Efficiency
DOE Energy Efficiency and Renewable Energy
Energy Star
U.S. Department of Energy
