Best Kept Secret-Oregon Business Energy Tax Credit

Protecting our environment is on the minds of many of us these days. To help encourage this behavior Oregon has a tax credit for those who want to help protect our environment while they conduct business. The Oregon Department of Energy offers a tax credit for businesses called The Business Energy Tax Credit. This credit is given to those who invest in energy conservation, recycling, renewable energy resources, and less-polluting transportation fuels.

The tax credit is 35 percent of the eligible project costs and is taken a five year period. Any unused credit is carried forward up to eight years. For project of $20,000 or less, the tax credit may be taken in full in one year.

Who can get a Tax Credit?

Trade, business, or rental property owners who pay taxes for a business site in Oregon are eligible for the tax credit. The business, its partners or its shareholders may use the credit. The applicant must own or be the contract buyer of the project (the project owner).

What types of Projects Qualify?

Here is a sample list of qualifying projects: 

  • Conservation
  • Recycling 
  • Alternative Fuels
  • Hybrid Vehicles
  • Rental Dwelling Weatherization
  • Transportation
  • Sustainable Buildings

What Costs are Eligible?

The tax credit can cover all costs directly related to the project, including equipment cost, engineering and design fees, materials, supplies, and installation costs. Loan fees and permit costs may also be claimed. Replacing equipment at the end of its useful life, equipment required to meet codes, or other government regulations is not eligible. Maintenance costs are also not eligible.

How do I apply for the tax credit?

You must apply for the tax credit BEFORE starting your project. You may request a waiver, but it will be granted only for business hardships or circumstances beyond your control that caused you to delay your application. The request must be made in writing within 90 days of project start and describe clearly the hardship or circumstances. Submit the project-specific Application for Preliminary Certification. The Oregon Department of Energy will send you a Preliminary Certificate when your application is approved. That's your go-ahead to start the project.

Applications and more information can be found at http://www.energy.state.or.us/bus/tax/taxcdt.htm
 
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