According to Section 136 of the U.S. Code, energy conservation subsidies provided (directly or indirectly) to customers by public utilities* are non-taxable. This exclusion does not apply to electricity-generating systems registered as "qualifying facilities" under the Public Utility Regulatory Policies Act of 1978 (PURPA). If a taxpayer claims federal tax credits or deductions for the energy conservation property, the investment basis for the purpose of claiming the deduction or tax credit must be reduced by the value of the energy conservation subsidy (i.e., a taxpayer may not claim a tax credit for an expense that the taxpayer ultimately did not pay)

In March 2004, New Mexico’s governor signed into law the Renewable Energy Act (S.B. 43), creating a state renewable portfolio standard (RPS). By 2020, investor-owned utilities (IOUs) are required to generate 20% of total retail sales from renewable energy resources, and rural electric cooperatives are required to generate 10% of total retail sales from renewable energy resources. This requirement was later increased by S.B. 489 of 2019.

Eligible Technologies

Renewable energy is defined as electric energy generated by low- or zero-emissions generation technology with substantial long-term production potential; solar; wind; geothermal; hydropower facilities brought in service after July 1, 2007

Energy Trust provides project development assistance including, but not limited to, grant writing assistance, feasibility studies, final design, permitting, and utility interconnection. Energy Trust can pay up to 50% of the cost of hiring an outside consultant to provide expert assistance for these activities, up to a maximum of $200,000.

Energy Trust provides incentives towards the construction costs of biopower, geothermal, or hydropower projects. Incentive levels are based on a project’s cost in comparison to the market value of the energy produced, or “above-market cost”. A potential installation incentive is based on a net-present value assessment that accounts for all

The New York State Energy Research and Development Authority (NYSERDA) through NY Sun Incentive Program (PON 2112) provides financial incentives for the installation of approved, grid-connected photovoltaic (PV) systems. The program was re-launched in 2014 with a goal of supporting 3.175 GW of installed capacity by 2023, which was expanded in 2020 to 6 GW of installed capacity by 2025, and again in 2022 to 10 GW by 2030. The program provides cash incentives for residential solar systems that are 25 kW or less, and for nonresidential systems that are 750kW or less in Upstate and PSEG Long

New York's system benefits charge (SBC), established in 1996 by the New York Public Service Commission (PSC), supports energy efficiency, education and outreach, research and development, and low-income energy assistance. To support the SBC program, the state's six investor-owned electric utilities collect funds from customers through a surcharge on customers' bills. The SBC program is administered by NYSERDA and funds numerous programs to improve the state's transmission and distribution infrastructure. The program goals include improving system-wide reliability and increasing peak-electricity reductions through end-user efficiency actions; improving energy efficiency and access to energy options for under-served customers; reducing the environmental impacts

WPPSEF Offers Conventional Financing that ranges from $25,000 to $1,000,000 and ACT 129 Micro Loans that range from $10,000 to $50,000. For more information on these programs please visit the website above.

The West Penn Power Sustainable Energy Fund (WPPSEF) promotes the use of renewable energy and clean energy among commercial, industrial, institutional and residential customers in the West Penn market region. Eligible technologies include solar, wind, low-impact hydro, sustainable biomass such as closed-loop biomass and biomass gasification, and innovative natural gas technologies as well as energy efficiency. Clean energy refers to advanced technologies, including landfill gas and fuel cells

The Sustainable Energy Fund (SEF) promotes and invests in energy efficiency and renewable energy projects, and energy education initiatives in the state of Pennsylvania. 

Financial incentives are offered as loans to promote clean energy technologies and for projects where energy savings are measurable. Eligible clean technology applications include a wide range of energy efficiency and renewable energy projects. Financing is available to commercial, industrial, municipal, agricultural, and nonprofit entities. Special features of the loans include: no prepayment penalty, subordinate lien positions, 100% financing, and interest only period payments.

The SEF also provides financing to non-profits through its Energy Savings Agreements program

FirstEnergy (formerly GPU) established the Metropolitan Edison Company (Met-Ed) Sustainable Energy Fund in 2000 with an initial contribution of $5.7 million. The fund later received an additional contribution of $2.5 million as a result of the merger between GPU Energy and FirstEnergy, bringing the total to $8.2 million. The fund is administered by the Berks County Community Foundation. The majority of funding available from the Metropolitan Edison Company SEF takes the form of investments made in businesses pursuing one or more of the fund's objectives. These funds typically will be distributed as loans or equity investments, but a limited number

Note: The Tax Cuts and Jobs Act of 2017 increased bonus depreciation to 100% for qualified property acquired and placed in service after September 27, 2017 and before January 1, 2023. Bonus depreciation steps down by 20% each year beginning with 80% in 2023.  

Under the federal Modified Accelerated Cost-Recovery System (MACRS), businesses may recover investments in certain property through depreciation deductions. The MACRS establishes a set of class lives for various types of property, ranging from three to 50 years, over which the property may be depreciated. A number of renewable energy technologies are classified as five-year property (26

According to Section 136 of the U.S. Code, energy conservation subsidies provided (directly or indirectly) to customers by public utilities* are non-taxable. This exclusion does not apply to electricity-generating systems registered as "qualifying facilities" under the Public Utility Regulatory Policies Act of 1978 (PURPA). If a taxpayer claims federal tax credits or deductions for the energy conservation property, the investment basis for the purpose of claiming the deduction or tax credit must be reduced by the value of the energy conservation subsidy (i.e., a taxpayer may not claim a tax credit for an expense that the taxpayer ultimately did not