Going Green Commercially Part 2 of 4

Going Green- Commercially

An overview of what it entails for a company to go “green”

Why go “Green”?Government Incentives- Federal

Modified Accelerated Cost-Recovery System

(MACRS)

Renewable Electricity

Production Tax Credit (PTC)

Energy-Efficient New Homes Tax Credit for Home

Builders

Business Energy Investment Tax

Credit (ITC)

Energy-Efficient Commercial Buildings Tax

Deduction

Residential Energy

Conservation Subsidy

Exclusion (Corporate)

Compiled by Author from Source: dsireusa.org


Modified Accelerated Cost-Recovery System (MACRS)

Businesses may recover investments through depreciation deductions

The type of investment dictates the number of years over which it can be depreciated

There is also a "placed in service" deadline for bonus depreciations



The "placed in service" deadlines are:

Equipment placed in service before January 1,

2018 qualify for 50% bonus

Equipment placed in service during 2018

qualify for 40% bonus

Equipment placed in service during 2019

qualify for 30% bonus




A variety of solar-electric and solar-thermal technologies

Fuel cells and microturbines

Geothermal electric

Direct-use geothermal and geothermal heat pumps

Small wind (100 kW or less)

Combined heat and power (CHP)

Five-year Renewable Energy Technology investments include:



Renewable Electricity Production Tax Credit (PTC)

A tax credit for electricity generated and sold by the taxpayer to an unrelated person during the taxable year

The credit is 10 years after the date the facility is placed in service



The tax credit amount for 2016:

$0.023/kWh for wind, closed-loop biomass, and geothermal energy resources

$0.012/kWh for open-loop biomass, landfill gas, municipal solid waste, qualified hydroelectric, and marine and hydrokinetic energy resources



If construction started after December 31, 2016:

The credit has been phased down for wind

All other technologies, the credit is no longer available

For facilities starting construction in 2017 it is

reduced by 20%


reduced by 40%


reduced by 60%

The phase-down for wind facilities:



Business Energy Investment Tax Credit (ITC)

A tax credit for qualified tax-paying owners based on capital investment in renewable energy projects

The ITC is earned when the equipment is placed into service


Energy-Efficient Commercial Buildings Tax Deduction

A tax deduction for energy-efficient commercial buildings in service from January 1, 2006

This deduction is set to expire at the end of 2016

The deductions are available primarily to building owners

Tenants may be eligible if they pay for construction expenditures

Why go “Green”?Government Incentives- FederalEnergy-Efficient Commercial Buildings Tax Deduction

A deduction of $1.80 per square foot is available if the following reduce the building’s total energy and power cost by 50% or more are installed:

Interior lighting Building envelopes A heating, cooling, ventilation, or hot water systems

Deductions of $0.60 per square foot are available if installations reasonably contribute to an overall building savings of 50%


USDA - High Energy Cost Grant Program

The U.S. Department of Agriculture (USDA) offers an ongoing grant program for the improvement of energy generation, transmission, and distribution facilities in rural communities

Eligibility is limited to projects in communities that have average energy costs at least 275% above the national average

A total of $7 million is available for qualifying projects

Grants range from $50,000 to $3 million


USDA - High Energy Cost Grant Program

Those eligible to apply for grant funding include:

• Non-profits

• Commercial entities

• State and local governments entities

• Tribal governments



USDA - High Energy Cost Grant Program Activities available for applying for a grant:

This grant program is not limited to renewable energy or energy conservation and efficiency measures, but these measures are eligible for this grant program.

Electric generation, transmission, and

distribution facilities

Natural gas or petroleum storage

or distribution facilities

Facilities used for on-grid or off-grid electric

power generation, water or space

heating, or process heating and power

Backup up or emergency power

generation or energy storage

equipment

Weatherization of residential and

community property

And other energy efficiency or conservation

programs



USDA - Rural Energy for America Program (REAP) Energy Audit and Renewable Energy Development Assistance (EA/REDA) Program

Provides assistance to agricultural producers and rural small businesses for energy audits and renewable energy technical assistance

Applicants must submit separate applications for assistance

Limited to one energy audit and one REDA per fiscal year

The maximum aggregate amount of a grant in a Federal fiscal year is $100,000


USDA - Rural Energy for America Program (REAP) Energy Audit and Renewable Energy Development Assistance

(EA/REDA) Program

Eligible project costs include:

Salaries directly related to the

project

Travel expenses directly related to conducting energy audits or renewable energy development

assistance

Office supplies Administrative expenses



USDA - Rural Energy for America Program (REAP) Grants

Provides financial assistance to agricultural producers and rural small businesses

In 2015, a total of $63 million in grants and loans was awarded

Generally available to small businesses and agricultural producers

Rural small businesses must be located in rural areas, but agricultural producers may be located in non-rural areas

To purchase, install, and construct renewable energy systems

To make energy efficiency improvements to non-residential buildings and facilities

To purchase renewable technologies that reduce energy consumption

To participate in energy audits and renewable energy development assistance

Grant money can be used:



USDA - Rural Energy for America Program (REAP) Grants

Renewable energy projects include:

Wind, solar, biomass and geothermal, and hydrogen

These grants are limited to 25% of a proposed project's cost

A loan guarantee may not exceed $25 million


U.S. Department of Energy - Loan Guarantee Program

For projects with high technology risks that:

Avoid, reduce or sequester air pollutants or anthropogenic emissions of greenhouse gases

Employ new or significantly improved technologies as compared to commercial technologies in service in the US

Loan guarantees are intended to encourage early commercial use of new or significantly improved technologies

The program generally does not support research and development projects

Contact Us for the Full Presentation:

Mediacontact USA Inc.13575 58TH Street North #160

Clearwater, Fl. 33760

T: 727 538 4112E: [email protected]

www.mediacontactusa.com

mailto:[email protected]

http://www.mediacontactusa.com/

Works Cited

N.C. Clean Energy Technology Center. "Database of State Incentives for Renewables & Efficiency." DSIRE, U.S. Department of Energy, www.dsireusa.org/. Accessed 14 Nov. 2016.

The Nielsen Company. "The Sustainability Imperative: New Insights on Consumer Expecteations." GLOBAL SUSTAINABILITY REPORT, Nielsen, Oct. 2015, www.nielsen.com/content/dam/nielsenglobal/dk/docs/global-sustainability-report-oct-2015.pdf. Accessed 14 Nov. 2016.

Going Green Commercially Part 2 of 4

Business

Transcript of Going Green Commercially Part 2 of 4