Green Energy Incentives Workbook

Sustaining Business Growthwith Energy Tax Incentives

Green Energy Tax Services

KEY QUESTIONS TO ASK

Summary of Key Questions to Energy Savings –General Federal Incentives for Businesses• Did the taxpayer build or renovate a facility?• Did the taxpayer design a building for a government entity?

• See Sec.179D, Energy-Efficient Commercial Building Deduction

• Did the taxpayer invest in alternative energy property to generate power?• See Business Energy Investment Tax Credit

• Did the taxpayer own a specified energy property?• See Payments for Special Energy Property

Summary of Key Questions to Energy Savings –General Federal Incentives for Businesses (continued)

• Did the taxpayer purchase a qualified alternative vehicle?• See Alternative Motor Vehicle Credit

• Did the taxpayer purchase or lease a qualifying plug-in hybrid vehicle?• See Plug-In Electric Vehicle Credit

• Did the taxpayer install qualified clean-fuel vehicle refueling property?• Alternative Refueling Property Credits

Summary of Key Questions to Energy Savings –General Federal Incentives for Businesses (continued)

• Did the taxpayer have qualified reuse & recycling property?• See Qualified Reuse & Recycling Property

• Did the taxpayer provide fringe benefits for employees?• See Fringe Benefits for Employees

• Did the taxpayer qualify for any alternative fuel credits?• See Alternative Fuel Credit

Summary of Key Questions to Energy Savings –Federal Incentives for Specific Manufacturers/Developers• Did the taxpayer produce 190-proof alcohol for use as fuel or

blending into fuel?• See Alcohol Fuel (Ethanol) Producer Credit

• Did the taxpayer produce qualifying biodiesel & renewable diesel?• See Biodiesel & Renewable Diesel Credit

• Did the taxpayer manufacture energy efficient appliances?• See Energy-Efficient Appliance Credit

• Did the taxpayer construct new homes that meet certain energy efficiency standards?• See Energy-Efficient New Homes Credit

• Did the taxpayer qualify for any alternative fuel credits?• See Alternative Fuel Credit

Summary of Key Questions to Energy Savings –Federal Incentives for Energy Industry• Did the utility company produce and sell electricity from

renewable sources?• Did the taxpayer produce excess electricity from renewable

sources and sell it back to the grid?• See Renewable Electricity Production Credit

• Did the utility company invest in a qualified advanced energy manufacturing project?• See Qualifying Advanced Energy Project Investment

Credit• Did the taxpayer qualify for any alternative fuel credits?

• See Alternative Fuel Credit

Summary of Key Questions to Energy Savings –Federal Incentives for Individuals• Did the taxpayer install energy-efficient property?

• See Residential Energy-Efficient Home Improvements Credit

• See Summary of Tax Credits for Homeowners for qualifying products

• Does the taxpayer have an energy-efficient property?• See Residential Energy-Efficient Property Credit

• Did the taxpayer purchase or lease a qualifying plug-in hybrid vehicle?• See Plug-In Electric Vehicle Credit

Summary of Key Questions to Energy Savings –State & Local Incentives for Businesses & Individuals• Does the taxpayer qualify for any state & local incentives?

• See Appendices A & B for State & Local Incentives for Businesses & Individuals

FEDERAL INCENTIVESGeneral Green Incentives and Credits for Businesses

Energy-Efficient Commercial Building Deduction –Section 179D

Potential$0.60 per square foot

deduction(lighting, HVAC, or envelope)

Did the new facility or renovation include installation of interior lighting, HVAC or hot water systems, and building envelope that

reduces power use 50% or more? (compared to reference building)

Did the taxpayer build a new facility or renovate an

existing facility?

Was the project certified?

Was the property placed in service before 2014?

Potential$1.80 per square foot

deduction (whole building)

YES

YES

If 50% reduction is NOT met, is energy reduced by 20% for lighting,

20% for HVAC, or 10% for building envelope?

NO

YES

YES

YES

YES

No Section 179D benefit available

NO

NO

No Section 179D benefit available

NO

NO

Need certification? Call Matt Becker at

616.802.3413NO

NO

Did the taxpayer design a building for a government

entity? YES

OR

YES

NO

Business Energy Investment Tax Credit –Section 48

Was the property:1. Qualified fuel cell?2. Qualified small wind

turbines?3. Solar used to generate

electricity for heating or cooling or to provide solar process heat?

Did the taxpayer invest in alternative energy

property to generate power for its own use?


30% credit (10% for solar after 2016)

10% credit

Is the property:1. Solar property used to

generate electricity, heating/cooling, or solar process heat?

2. Equipment that uses the ground or ground water to heat or cool a structure?

NO

Is the property:1. Equipment for producing

or distributing geothermal energy?

2. Qualified micro-turbines (small combustion)?

3. Combined heat and power systems?


YES

YES

NO

YES

YES

No additional benefit available

NO

NO

Note that the credit for geothermal property, with the exception of geothermal heat pumps, has no stated expiration date.

YES

YES

Payments for Specified Energy Property in Lieu of Tax Credits – Section 1603

Was the property placed in service between 1/1/2009

and 12/31/2010?

Did the taxpayer own a specified energy

property?

Grant amount equal to 10% or 30% of the tax

basis of the eligible property, depending on

the type of property

If construction of the property began between

1/1/2009 and 12/31/2010, was the property placed in

service after 2010 and before the credit termination date?

NO

YES

YES


NO

NO

1. Specified energy property are depreciable properties that are, among others, part of an electricity production facility using wind, biomass, geothermal or solar energy, or certain power plants using fuel cells or micro-turbines.

a. Qualified property includes expansions of an existing property that is qualified property under §45 or § 48 of the IRC.

2. For property placed in service in 2009 or 2010 OR for properties that were not placed in service in 2009 or 2010, but for which construction began in 2009 or 2010, applications must be submitted after the property has been placed in service and before October 1, 2011.

3. Eligible persons must be the owner or lessee of the property and must have originally placed the property in service.

4. See http://www.treas.gov/recovery/docs/guidance.pdf for more information regarding credit termination dates and applicable payment percentages.

YES

Alternative Motor Vehicle Credit – Section 30B

Did the taxpayer purchase a qualifying fuel cell,

hybrid, advanced lean burn technology or alternative

fuel vehicle?

Credit up to $2,400

YES

Did the taxpayer purchase or lease and place in

service a qualifying plug-in hybrid vehicle?

$7,500 maximum credit

YES

10% credit up to $2,500 for low-speed vehicles, motorcycles and three-

wheeled vehicles

10% credit up to $4,000 for plug-in vehicle

conversionsOR OR

No additional benefit availableNO


NO

Plug-In Electric Vehicle Credit – Section 30D

Alternative Refueling Property Credits –Section 30C

Did the taxpayer install qualified* clean-fuel vehicle

refueling property to be used in a trade or

business?

* Clean-burning fuels are at least 85% composed of ethanol, natural gas, compressed natural gas, liquefied natural gas, liquefied petroleum gas or hydrogen – or any mixture of biodiesel and diesel fuel containing at least 20% biodiesel.

50% credit of up to $50,000

YES

30% credit of up to $200,000 for hydrogenOR


NO

Qualified Reuse & Recycling Property –Section 168(m)

Did the taxpayer have qualified reuse and recycling property*?

* Qualified reuse and recycling property is machinery or equipment that is used

exclusively to collect, distribute or recycle qualified reuse and recyclable materials. It also

includes software necessary to operate such equipment.

Bonus Depreciation Equivalent

YES


NO

Fringe Benefits for Employees – Section 132

Bicycle commuters -

$20/month fringe benefit exclusion

Fringe benefit exclusion for

transit is increased to $230 in 2009

There are two new “green” provisions allowing increased

fringe benefits. Fringe benefits provided to employees are not taxed as income, even if the

employer offers the employee a choice between cash

compensation and the fringe benefit.

FEDERAL INCENTIVESIncentives for Specific Manufacturers & Developers

Alcohol Fuel (Ethanol) Producer Credit –Section 40

Did the taxpayer produce 190-proof alcohol for use as a fuel or blending into

fuel?


60¢/gallon creditAdditional 10¢/gallon

small ethanol producer credit

Higher credit rate for cellulosic biofuel

YES

Did the taxpayer produce qualifying biodiesel &

renewable diesel?


$1.00/gallon creditIncentive may be taken as an income tax

credit, an excise tax credit or as a payment from U.S. Treasury Department

YES

Biodiesel & Renewable Diesel Credit – Section 40A

Energy-Efficient Appliance Credit – Section 45M

Did the taxpayer manufacture energy-

efficient clothes washers, dishwashers and/or

refrigerators?


Washers $75 - $250 per appliance

Dishwashers $45 - $75 per appliance

Refrigerators $50 - $200 per appliance

YES

Did the taxpayer construct new homes that meet

certain energy efficiency standards?


Up to $2,000 credit per home

YES

Energy-Efficient New Homes Credit – Section 45L

See Appendix C

FEDERAL INCENTIVESIncentives Geared to Energy Industry

Renewable Electricity Production Credit –Section 45

Did the utility companyproduce and sell electricity from

renewable sources such as landfill gas, wind, solar,

hydroelectric, geothermal or biomass that were placed in service before 12/31/2012?

2.1¢/kWh for wind, geothermal, closed-loop biomass; 1.1¢/kWh for

other eligible technologies*


Did the taxpayer produce excess electricity from

renewable sources and sell it back to the grid?

OR

*Note that the duration of the credit is generally 10 years after the date the facility is placed in service, but there are two exceptions: Open-loop biomass, geothermal, small irrigation hydro, landfill gas and municipal solid waste combustion facilities placed into service after October 22, 2004, and before enactment of the Energy Policy Act of 2005, on August 8, 2005, are only eligible for the credit for a five-year period.

Open-loop biomass facilities placed in service before October 22, 2004, are eligible for a five-year period beginning January 1, 2005.

Did the taxpayer apply and receive U.S. Treasury Department certification for the project?

30% credit (taxpayer may not combine with business energy investment tax credit)

Did the project produce any of the following:1. Equipment and/or technologies used to produce energy from the sun, wind, geothermal or “other”

renewable resources;2. Fuel cells, micro-turbines or energy-storage systems for use with electric or hybrid-electric motor

vehicles;3. Equipment used to refine or blend renewable fuels; or4. Equipment and/or technologies to produce energy-conservation technologies (including energy-

conserving lighting technologies and smart grid technologies)*

Qualifying Advanced Energy Project Investment Credit – Section 48C

YES

In total, $2.3 billion worth of credits may be allocated under

this program.

In determining which projects to certify, the U.S. Treasury

Department must consider those which most likely will be

commercially viable, provide the greatest domestic job creation,

provide the greatest net reduction of air pollution and/or greenhouse

gases, have great potential for technological innovation and

commercial deployment, have the lowest levelized cost of generated (or stored) energy or the lowest

levelized cost of reduction in energy consumption or

greenhouse gas emissions, andhave the shortest project time.

Did the utility company invest in a qualified advanced energy

manufacturing project(s) that establishes, re-equips or expands a

manufacturing facility?


YES

*This credit may be expanded in the future to include other energy technologies that reduce greenhouse gas emissions, as determined by the U.S. Treasury Department.

Note: The U.S. Treasury Department, in consultation with the U.S. Department of Energy, must create additional specific program guidelines and the application process by August 16, 2009.

YES

Sections 6426 & 6427 provide various per-gallon credits for alternative fuels,

including alcohol or ethanol.

See Summary of Alternative Fuel Credit Incentives Chart

Alternative Fuel Credit – Sections 6426 & 6427

Alternative fuels that may qualify for the 50¢ per gallon refundable tax credit include:

Liquefied petroleum gas, including propane; alcohol fuels defined by the Department of Energy as “P Series Fuels” under 42 USC 13211(2); compressed or liquefied natural gas; liquefied hydrogen; liquid fuel derived from coal; compressed or liquefied gas derived from biomass defined under §45K(c)(3); liquid fuel derived from biomass defined under §45K(c)(3), but excluding ethanol, methanol or biodiesel.

The credit may be claimed as:(1) an excise tax payment on Form 8849, Claim for Refund of Excise Taxes; (2) an excise tax credit on Form 720, Quarterly Federal Excise Tax Return; or (3) as a refundable income tax credit on Form 4136, Credit for Federal Tax Paid on Fuels. The taxpayer must coordinate its claims to prevent double usage of credits and refunds. Excise tax payments and credits are generally included in taxable income, but refundable income tax credits claimed on Form 4136 may not be.

To claim alternative fuel credits or payments, the taxpayer must first register for excise tax activities by filing Form 637, Application for Registration (for Certain Excise Tax Activities).

Alcohol Fuel Qedit (Neat)

Alcohol Fuel lixture Credit

12/31/2010

12/31/2010

§40(a)(2) Alcohol 1mm biomass that is at least ISO-prool. Income Tax ISO-Prool [tha nol =

Neatluel mustbe usedasa luelin producers business or sold at retail byproducer into a motor vehidetanlc.

45C/Gal

150-Prool[thanol =

33.33C Gal

ISO-Wool Methanol =

&C I Gal

ISO-Wool Methanol =

451/Gal §40(a)(1) Mixture of alcohol Irom biomass that is at least Income & ISO-Prool [tha nol =

I50-proolwith gasoline or motorfuel that is used as a fuel in producer's business orsold by

[ise Tax 451/Gal

§6126(b) 15O-Ptool[thanol = roduceras a fuel. 33.331 Ga

§6121(efll) 1S0-Prool Methanol =

01 / Gal

150-Prool Methanol =

451/Gal Small Ethanol ProducerCiedit §40(a)(3) Small pioducerof 150-proof ethanol 1mm biomass

that producer uses as a fuel or sells as a luel. May be mixed or neat. limited to 15 mil. gallons perar.Asmall produceris generallyOmil. allonsorless er ar.

IncomeTax 150-ProolEthanol =

101/ Gal 12/31/2010

Cell ulosic Biofuel Credit §40(a)(4) liquid fuel lorm renewable cellulosic matterthat meets(Iean AirAct §211,and which produceruses

Income Tax SLO1/ Gal, reduced by alcohol mixture and small etha nol producer credits, ilfuel is alcohol

12/31/2012

as a fuel or sells as a luel. May be mixed or neat If alcohol, it must be 150-proof.

Summary of Alternative Fuel Credit Incentives

Biodiesel Ciedit (Neat) §40A(a H?) Fattyacids from plant or a nimal mailer that meets ji) clean AirAct §211, and (ii) ASIM Standard D6JS1. Neat fuel must be used as a fuel in producer's business orsold at ,etail bypioducer into a motor tiehicle tank.

Income Tax $1.00, Ga lion 12/31/2000

Biodiesel MixtureCredit §40A(a)(1) Mixtureofbiodiesel anddiesel fuel thatis used

as a fuel in producer's business or sold by

lncome& ExciseTax

$1.00/Gallon 12/31/2009

§6426(c) producer as a fuel.

§6421(e)(1)

Small Agri-Biodiesel Credit §40A(a)(3) Small producer of biodiesel that producer uses as a fuel or sells as a fuel. May be mixed or neat. limited tol5mil.gals/year. Asmall producer is generally 60 mu. gallons or less per year.

Income lax 1OC/ Gal Ion of flgri-Biodiesel

12/31/2009

IU(.1tflstIttSiItURIIIIII.1[,)t}. ,

and which meets Clean Air Act4211. IiftII.taPnzgtc,,lI[EI IhJ4

Reduces ExciseTax from Indicated

24.3C down to 19.1C

Alternative Fuel Credits (Neat) §6426(dJ liquid petroleum gas; .P Series alcohol fuels; ExciseTax SOC/ Gal Ion 12/31/2009

§6421(e)(2J Compressed or liquefied natural gas; liquid hydrogen; liquid coal fuel; Compressed or liquefied biomass gas; liquid biomass fuel (excludingethanol, methanol, or biodieselj. Fuel

must be used or sold for use in a motor vehicle.

Alternative Fuel MixtureCredits §6426(e) Mixtureofalternativefuel with diesel fuel, gasoline, or kerosene. The mixture must be sold as a fuel or used as a fuel in the producer's

ExciseTax SOC/Gallon 12/31/2009

§6421(e)(1) business.

Summary of Alternative Fuel Credit Incentives (continued)

FEDERAL INCENTIVESPersonal Incentives for Individuals

Did the taxpayer install energy-efficient property, such as water heaters, central air conditioning and

heating, boilers, heat pumps, air conditioners, building insulation, windows, doors, roofs or circulating fans used in a qualifying furnace?

Were the qualified purchases between 1/1/2009 and

12/31/2010?

YES


NO

Residential Energy-Efficient Home Improvements Credit – Section 25C

30% credit of up to $1,500 for all improvements

combined during 2009 and 2010YES

You can find a list of qualifying home improvement equipment from the Energy Star web site: www.energystar.gov/index.cfm?c=tax_credits.tx_index

Insulation Insulation Meets 2009 IECC & Amendments 30%of cost urflç For insulation to qualify, its primary purpose must beth insulate (example: insulated siding doesnot.uali ).

s15001

Check to see if you have Home Performance with ENERGYSTAR in your ares. Adding insulation to

ur home is covered.

Windows & Doors Exterior Windows and Beforelunel 2009: 30%of cost up to Notall ENERGYSTAR labeled windows and Skylights 51,5001 s lihts .uali fortaxcredit

Must mea ENERGY STAR criteria More information

Afteriunel 2009:

Ufactorc=030

SIIGCc=0.30

Storm Windows In combination with the exterior window over which itis installed:

30%of cost up to 51,5001

FAQ on storm doors and storm windows.

1. has a U-factor and SIIGC of 030 or below 2. Meets the IECC

Exterior Doors Beforeiunel 2009: 30%ofcosç up to Notall ENERGY SlARdoors will qualify. Must med ENERGY SFAR criteria 51,5001 More information

Afteriunel 2009:

Ufactorc=0.30

SIIGCc=0.30

Summary of Tax Credits for Homeowners

Windows & Doors (cont) Storm Doors In combination with a wood door over which itis installed:


FAO on storm doors and storm windows.

1. has a U-factor and SIIGC of 030 or below 2. Meets the IECC

Roofing Metal Roofs, All ENERGYSTARqualified metal and reflective asphalt shingles


FN on roofs thatqualify for the tax credit

Asphalt Roofs

Central A/C SplitSystems 30%of cost up to FMI on Central Ns thatqualify for thetax credit 51,5001

[ER '=13

SEER 16 FAQ on Air Source Heat Pumos that uualify for the tax credit

Air Source 1-leat Pumps

'a.i'gesy r1fl5

[[R'=12 SEER 14

SpktSysterns.

I-ISPF 83 [ER 123

SEER 15

Package systems:

IISPF>=8

EER 12

SEER 14

30%ofcosç up to $is001

'. noa ' ipr..uc.wi qualify for thetax credit View ENERGY SMR criteria.

Summary of Tax Credits for Homeowners(continued)

FM) on Furnaces and Boilers thatqualify for the tax credit

Note notall ENERGYSIAR products will qualify for thetax credit View ENERGY STAR

criteria for furnaces, boilers.

Read this FM) if the fan qualifies, but the furnace does not

FAQ on Water Heaters thataualifv for the tax credit

View ENERGY STAR criteria for water heaters.

FAQ on biomass stoves.

uvw (cont) Natural Gas or Propane AFUE >= 95 30%of cost up to Furnace $15001

Oil Furnace AFUE 90 30%ofcosç up to $15001

Gas, Propane, or Oil I-lot AFUE 90 30%of cost up to Water Boiler $15001

Advanced Main Air No more than 2% of furnace total 30%of cost up to Circulating Fan energy use. $15001

Water 1-leaters Gas, Oil, Propane Water Energy Factor '= 022 30%of cost up to I-lea ter or a thermal efficiency of at least 90%. $15001

Electric Heat Pump Water Samecriteria as ENERGYSTAR: Energy 30%of cost up to I-lea ter Factor '= 2.0 $15001

Biomass Stove Biomass Stove Stovewhich burns biomass fuel to heata homeor heat water.

30%of cost up to $15001

Thermal efficiency rating of at least 75% as measured using a lower heating value.


Geothermal Heat Pump Geothermal Heat Pump Samecriteria as ENERGY STAR: 30% of the cost All [N[RGYSTAR .-thermal heat urn's .uali for the tax credit

Closed mop: Must be "placed into servic before December 31.2016.

[ER '= 14.1

COP '=3.3

Open Loop:

[ER '= 16.2

COP '=3.6

Direct Expansion:

[ER >= 15

COP >=3.5

Solar Energy Systems Solar Water Heating At least half of the energy generated

by the ifying property must come from the sun. Homeowners may

only claim spendingon thesolar water heating system property, not the entire water heating system of the household.

The credit is notavailablefor expensa for swimming pools or hot tubs.

The water must be used in the dwelling.

The system must be certified by the Solar Ratingand Certification Cor oration (SRCC).

30%of cost

Must be placed in service before December31 2016.

All ENERGY STAR solar water heaters qualify for the lax credit


Solar Energy Systems

(cont) Photovoltaic Systems Photovoltaic systems must provide

electricity for the residence, and must meetapplicablefireand electrical code requirement

30%of cost Must be placed in service before December31

Z1!1L

Small WindEnergy tems

Residential Small Wind Turbines

has nameplatecapacityofnotmore than 100 kilowatts.

30%of cost Mustberilaced inservicebeforeDecember3l. 2016.

Fuel Cells Residential Fuel Cell and microturbine system

Efficiency of atleast3o% and must have a capacity of at least 0.5 kW.

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

of wer ca aci

Mustbeplaced in service before December 31 2016.

Cars Hybrid gasoline-electric,

diesel, battery-electric, alternative fuel, and fuel cell vehicles

Based on a formula determined by vehicle weight technology, and

There is a 60,000 vehicle limit per manufacturer

before a phase-out period begins. Toyota and Honda havealready been phased out Credit is still availablefor Ford, GM and Nissan.

Plug-in hybrid electric vehicles

to a $1500 mudmum per homeowner for uI improvements combinet

compared to base

yr models

5250041,500

For more information visit Fueleconomy.gov

Use IRS Form 8910

for hybrid vehicles purchased for personal use.

Use IRS Form 3800

for hybrid vehicles purchased for busi ness

purposes.

Thefirst25o,000 vehicles sold getthefull tax credit (then it phases out like the hybrid vehicle tax credits).

[ifectiveianuary 1,2009.


Does the taxpayer have an energy-efficient property, such as solar water heaters, geothermal

heat pumps, fuel cells or wind turbines?

30% personal tax credit

YES


Residential Energy-Efficient Property Credit –Section 25D

Did the taxpayer purchase or lease and place in

service a qualifying plug-in hybrid vehicle?

$7,500 maximum credit

YES

10% credit up to $2,500 for low-speed vehicles,

motorcycles and three-wheeled vehicles

10% credit up to $4,000 for plug-in vehicle conversions

OR OR


Plug-In Electric Vehicle Credit – Section 30D

Starting January 1, 2009, there is a new tax credit for Plug-in hybrid electric vehicles, starting at $2,500 and capped at $7,500 for cars and trucks (the credit is based on the capacity of the battery system). The first 250,000 vehicles sold get the full tax credit (then it phases out like the hybrid vehicle tax credits).

Tax credits are available to buyers of hybrid gasoline-electric, diesel, battery-electric, alternative fuel, and fuel cell vehicles. The tax credit amount is based on a formula determined by vehicle weight, technology, and fuel economy compared to base year models. These credits are available for vehicles placed in service starting January 1, 2006. For hybrid and diesel vehicles made by each manufacturer, the credit will be phased out over 15 months starting after that manufacturer has sold 60,000 eligible vehicles. For vehicles made by manufacturers that have not reached the end of the phase-out, the credits will end for vehicles placed in service after December 31, 2010. See the IRS website for updated information http://www.irs.gov/newsroom/article/0,,id=157557,00.html .

See Appendix C

STATE & LOCAL INCENTIVESIncentives for Businesses

State & Local Incentives for Businesses• There are many state and local incentives available to

businesses that are energy efficient, invest in energy-efficient products, produce renewable energy, manufacture renewable energy products, construct energy-efficient buildings, or remodel buildings so that they are energy-efficient.

• These incentives could include tax credits, abatements or exemptions, cash grants or rebates, accelerated depreciation, and below-market financing.

• In addition, many utilities offer incentives for operating in an energy-efficient manner, such as reduced rates or rebates.

See Appendix A for information with respect to specific states.

STATE & LOCAL INCENTIVESIncentives for Individuals

State & Local Incentives for Individuals

Many state and local governments also provide incentives to

individuals to promote the use of energy efficient products such as

alternative fuels. These incentives could include such things as tax

credits, tax rebates, tax exemptions, tax deductions and

cash grants.

To encourage the use of alternative fuel vehicles,

states offer credits, grants, loans, rebate

programs, incentives and exemptions.

The matrix also lists the available credits, grants, loans, rebate programs, incentives and exemptions for vehicles.

See Appendix B for information with respect to the incentives for using alternative fuel and energy-efficient vehicles in specific states.

APPENDIX AEnergy Credits & Incentives

Renewable Energy & Energy Efficiency Credit Incentives

Renewable Energy & Energy Efficiency Credit Incentives (continued)

APPENDIX BAlternative Fuel & Vehicle Credits & Incentives

Alternative Fuel & Vehicle Credits & Incentives

Alternative Fuel & Vehicle Credits & Incentives (continued)

APPENDIX CTax Incentives Assistance Project Summary of Federal Energy Efficiency Tax Incentives

Source: American Council for an Energy-Efficient Economy

For more information see: www.energytaxincentives.org

Notes

Existing homes and other non-business applications $1,500 per taxpayer cap for existing home energy efficiency incentives Central Air Conditioners and Air-Source Heat Pumps For list of qualified products, go to the Consortium for Energy

Efficiency Product Directory web site:

www.ceehvacdirectory.org/continue.html Water heaters (non-business applications) See AHRI Web site for list of qualifying products: Electric 2.0 EF 2009-2010

0.82 EF 2009-2010*or a thermal efficiency of at least 90%

Gas and oil furnaces and boilers See AHRI Web site (link above) for list of qualifying products.Furnaces (gas & propane) 95 AFUE 2009-2010 There is also an incentive for furnace fans. Check the TIAP site for details.Boilers and oil furnaces 90 AFUE 2009-2010

Biomass Stoves 30% of the cost of installation (includes materials and labor) 2009-2010 See www.pelletheat.org for more information

Envelope improvements to existing homesInsulation, duct sealing and infiltration reduction Includes duct sealing and infiltration reduction. Exterior doors, windows and skylights

There is also an incentive for window films. See the TIAP site for details.Roofs made of metal with pigmented coatings or asphalt with cooling granules

Appliances All appliance incentives go to manufacturer, not consumer; manufacturers are expected to reduce prices accordingly.

Refrigerators Save 20-22.9% relative to federal standard Look to left $50 2008 Save 23-24.9% relative to federal standard Look to left $75 2008 & 2009 Save 25-29.9% relative to federal standard Look to left $100 2008, 2009 & 2010 Save 30% or more relative to federal standard Look to left $200 2008, 2009 & 2010 Clothes Washers

Meet/Exceed 1.72 MEF, do not exceed 8.0 WCF residential, top-loading $75 2008Meet/Exceed 1.8 MEF, do not exceed 7.5 WCF residential, top-loading $125 2008 & 2009Meet/Exceed 2.0 MEF, do not exceed 6.0 WCF residential or commercial $150 2008, 2009 & 2010Meet/Exceed 2.2 MEF, do not exceed 4.5 WCF residential or commercial $250 2008, 2009 & 2010

DishwashersModels using no more than 324 kilowatt hours/year and 5.8 gallons of water/cycle $45.00 2008 & 2009

$75 2008, 2009 & 2010

New Homes Incentives go to the builder, not the homebuyer. Site-built or manufactured homes 50% savings $2,000 2006 - 2009 Savings relative to 2004 IECC. Manufactured homes 30% savings $1,000 2006 - 2009 Savings relative to 2004 IECC.

or meets Energy Star 2006 - 2009Commercial Buildings Max. is $0.60/sq.ft. per system or $1.80/sq.ft. for whole bldg. Whole building 50% savings Deduction of $1.80/sq.ft. 2006 - 2013 Savings relative to ASHRAE 90.1-2001. Lighting, HVAC or envelope 50% savings Deduction of $0.60/sq.ft. per system 2006 - 2013 Savings relative to ASHRAE 90.1-2001. Lighting savings of at least 25% 25-50% savings Sliding scale: $.30/sq.ft. for 25% svgs Unclear Term of this provision depends on Treasury rulemaking.Combined Heat and Power 10% investment tax credit, applicable to the first 15MW of CHP property. See www.energytaxincentives.org/business/chp.php for details.Fuel Cells and Microturbines

Fuel Cells: Businesses, utilities, telecommunications firms 30% efficiency 30% up to $3000/kWFuel Cells: Residential 30% efficiency 30% up to $1000/kWMicroturbines (only business credit) 26% efficiency 10% up to $200/kW Systems < 2000 kW.

On-Site Renewables 30% of system installed costs, with some caveats (see below)Solar Photovoltaic (PV) and Solar Water Heating Systems See site for details. 30% up to $2,000* 2006 - 2016 *On-site renewable property installed after December 31, 2008 is not subjectOn-Site Small Wind 100 kW capacity or less 30% up to $4,000* 2008 - 2016 to any cap or restriction beyond the 30% of installed cost.Geothermal Heat Pumps Meets Energy Star spec. 30% up to $2,000* 2008 - 2016** See TIAP web site for details.

**Commercial buildings installing heat pumps can only take the $2,000 incentive if installed after Oct. 3, 2008. See http://www.geoexchange.org/ for more informationVehicles For details on passenger vehicle/consumer vehicle incentives:

www.energytaxincentives.org/consumers/vehicles.php For details on commercial vehicle incentives:

Heavy-duty vehicles www.energytaxincentives.org/business/commercial_vehicles.php

Key: AFUE= annual fuel utilization efficiency; ASHRAE = American Society of Heating, Refrigerating & Air-Conditioning Engineers; CEE = Consortium for Energy EfficiencyEF= energy factor; HSPF= heating season performance factor; IECC= International Energy Conservation Code; kW= kilowatt; SEER= seasonal energy efficiency ratio; SHGC= Solar Heat Gain Coefficient; WF= water factor.

Prepared by the American Council for an Energy-Efficient Economy for the Tax Incentives Assistance Project (TIAP)www.energytaxincentives.org Updated February 2009

Dependent on manufacturer sales

2009-2010

Product

Gas and oil

Eligibility Information Amount of Incentive Years Covered

Meet Energy Star spec2009-2010

2006 - 2016

Tax Incentives Assistance Project Summary of Federal Energy Efficiency Tax Incentives

MEF: Modified Energy Factor. The higher the MEF, the more efficient the unit.

http://www.ahrinet.org/Content/FederalEnergyEfficiencyTaxCredits_853.aspx

Systems >=0.5 kW for credit. The increase to $3,000/kW incentive for businesses is valid for units placed in service after October 3, 2008. Prior to that the incentive is $1,000/kW.

Models using no more than 307 kilowatt hours/year and 5.0 gallons of water/cycle (5.5 gallons/cycle for dishwashers designed for greater than 12 place settings)

The credit to manufacturers is capped at $75 million for the period of 2008 - 2010. The most efficient refrigerators (30%) and clothes washers (2.2 MEF/4.5 WCF) are exempted from this cap.

WCF: Water Consumption Factor. The lower the WCF, the more water efficient the unit.

See www.aceee.org/transportation/hybtaxcred.htm for details on credit calculation

Passenger hybrid and alternative-fuel vehicles, and plug-in electric vehicles

Must achieve highest efficiency tier established by CEE as of 1/1/2009. For most equipment, this is SEER 16.

Thermal efficiency of 75% as measured using a lower heating

30% of the cost of installation (includes materials and labor)


Equal to or below 0.30 U Factor and SHGC of 0.30


Meet 2009 IECC & supplements

30% of the cost of installation (includes materials only)

Green Energy Incentives Workbook

Documents

Transcript of Green Energy Incentives Workbook