Energy Conservation Tax Credits - Small Premium Projects (Corporate)

The Oregon Department of Energy periodically releases Opportunity Announcements for tax credits for energy conservation projects. There is currently $2 million available in tax credits for conservation projects on a first-come, first-served basis. The maximum tax credit per project is $7,000. Projects must submit completed applications by June 30, 2017, with the form available on the program website listed above.

The Energy Conservation Tax Credits program is set to sunset at the end of the 2017 tax year.  

Energy conservation projects include projects with investments for which the first year energy savings yields a simple payback period of greater than three years. Projects with a total cost of less than $20,000 may qualify for the Small Premium Projects program; larger projects can apply for the Competitively-Selected Projects program. Tax incentive amounts vary with each Opportunity Announcement, but may not exceed 35% of project costs. Possible types of technologies may include:

• Adjustable flow irrigation pumping
• Building envelope thermal improvement 
• Commercial Greenhouses Energy Retrofits
• Commercial Lighting
• Direct-fired radiant heating in high volume space
• Ductless heat pumps with variable refrigerant flow
• High performance homebuilding
  
• Heat pump hot water heating
• Industrial piping insulation
• Outdoor LED lighting
  
• Premium efficiency electric air conditioning equipment
• Solar thermal water heating

Qualifying project costs include: project components; fees to design or engineer the project; title searches, escrow fees, permits, licenses; materials and supplies needed for erection, construction, installation and acquisition of the project; work performed by employees or contractors that meet certain requirements; and certain legal fees related to the development of the project.  

Eligible applicants must be a trade, business or rental property owner with a business site in Oregon, or be an Oregon non-profit, tribe, or public entity that partners with an Oregon business or resident. Applicants must also own or be the contract buyer of the project and use the equipment or lease it to another Oregon business or resident. Check the program website for information regarding current solicitations, requirements, and application materials.

Under the Energy Incentives Program, tax credits may be transferred to a pass-through entity. More information and rules for pass through tax credits are available on the website.