Oregon Administrative Rules
Chapter 330 - DEPARTMENT OF ENERGY
Division 70 - TAX CREDIT ELIGIBILITY CRITERIA FOR RESIDENTIAL ALTERNATIVE ENERGY DEVICES
Section 330-070-0022 - Amount of Tax Credit
Universal Citation: OR Admin Rules 330-070-0022
Current through Register Vol. 63, No. 9, September 1, 2024
(1) The amount of the AED tax credit is based on the first-year energy savings of an eligible AED. The department has determined first-year energy savings estimates for eligible AEDs and associated tax credit amounts, which are listed in the RETC Rate Chart. The energy savings basis for a solar tax credit may be adjusted by the department to account for less than optimal solar access.
(2) The amount of the AED tax credit may not exceed the lesser of:
(a)
For AEDs used for space heating, cooling, electrical energy or domestic water
heating, other than an AED using solar radiation for domestic water heating or
electric heat pump water heater, $1,500 or the first-year energy savings of the
AED in kWh multiplied by 60 cents. The amount of the credit may not exceed 50
percent of the cost of the AED and materials directly associated with the
installation or construction of the AED.
(b) For electric heat pump water heaters
rated as a Northern Climate Specification Product Tier 1, $1,500 or the
first-year energy savings of the AED in kWh multiplied by 28 cents. The amount
of the credit may not exceed 50 percent of the cost of the AED and materials
directly associated with the installation or construction of the AED.
(c) For electric heat pump water heaters
rated as a Northern Climate Specification Product Tier 2 or greater, $1,500 or
the first-year energy savings of the AED in kWh multiplied by 38 cents. The
amount of the credit may not exceed 50 percent of the cost of the AED and
materials directly associated with the installation or construction of the
AED.
(d) For AEDs that use solar
radiation for domestic water heating:
(A) The
incentive rate is based on when the system is certified as operational as of
the date of the final inspection:
(i) Before
September 1, 2015, $1,500 or the first-year energy savings of the AED in kWh
multiplied by 60 cents. The amount of the credit may not exceed 100 percent of
the cost of the system components and their installation.
(ii) On or after September 1, 2015 and for
tax years beginning on or after January 1, 2015, the first-year energy savings
of the AED in kWh multiplied by $2.00, or 50 percent of the cost of the system
components and their installation, not to exceed $6,000. The maximum credit
claimed per year may not exceed $1,500.
(B) The tax credit is calculated:
(i) Prior to September 1, 2015, by
multiplying the Solar Rating and Certification Corporation (SRCC) savings
estimate for the appropriate zone, times the Total Solar Resource Fraction
(TSRF), times the incentive rate.
(ii) On or after September 1, 2015, by
multiplying the Solar Rating and Certification Corporation (SRCC) savings
estimate for the appropriate zone times the incentive rate.
(e) For AEDs used for
swimming pool, spa or hot tub heating, other than an AED using solar radiation
for swimming pool heating, the first-year energy savings of the AED in kWh
multiplied by 15 cents, up to 50 percent of the eligible cost of the AED,
including the cost of materials directly associated with the installation or
construction of the AED and their installation, or $1,500.
(f) For AEDs using solar radiation for
swimming pool heating:
(A) The incentive rate
is based on when the system is certified as operational as of the operational
date reported on the RETC application form:
(i) Before September 1, 2015, the first-year
energy savings of the AED in kWh multiplied by 15 cents, up to 50 percent of
the eligible cost of the system components and their installation, or
$1,500.
(ii) On or after September
1, 2015 and for tax years beginning on or after January 1, 2015, the first-year
energy savings of the AED in kWh multiplied by $0.20, or 50 percent of the cost
of the system components and their installation, not to exceed $2,500. The
maximum credit claimed per year may not exceed $1,500.
(B) The tax credit is calculated by
multiplying the collector area in square feet, times the number of collectors,
times the solar output by zone, times the incentive rate.
(C) The solar output by zone is:
(i) 30 kWh/ft2 for systems located in Zone 1
which is areas not in Zone 4 of the following counties: Benton, Clackamas,
Clatsop, Columbia, Lane, Lincoln, Linn, Marion, Multnomah, Polk, Tillamook,
Washington and Yamhill.
(ii) 30
kWh/ft2 for systems located in Zone 2 which is areas not in Zone 4 of the
following counties: Coos, Curry, Douglas, Jackson and Josephine.
(iii) 35 kWh/ft2 for systems located in Zone
3 which is the following counties: Baker, Crook, Deschutes, Gilliam, Grant,
Harney, Hood River, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman,
Umatilla, Union, Wallowa, Wasco and Wheeler.
(iv) 20 kWh/ft2 for systems located in Zone 4
which is areas within 10 miles of the coast.
(g) For each alternative fuel device, 50
percent of the eligible cost of the alternative fuel device or $750.
(h) For fuel cell systems, $3.00 per watt of
the installed capacity or $6,000, and not to exceed 50 percent of the cost of
the system components and their installation. One tax credit may be issued per
year, per residence, and the maximum credit claimed per year may not exceed
$1,500.
(i) For wind AEDs, the
first-year energy savings of the AED in kWh multiplied by $2.00, not to exceed
the lesser of $6,000 or 50 percent of the cost of the system components and
their installation. One tax credit may be issued per year, per residence, and
the maximum credit claimed per year may not exceed $1,500, over a four year
period.
(j) For premium efficiency
biomass combustion devices, the average heating need times the stove efficiency
improvement times 60 cents, up to $1,500. The amount of the credit may not
exceed 50 percent of the cost of the AED and materials directly associated with
the installation or construction of the AED. The department will use the EPA
default efficiency as of January 1, 2016 when calculating the stove efficiency
improvement for:
(A) Wood or pellet stoves
without full efficiency testing listed on the EPA list of EPA Certified Wood
Heaters,
(B) Wood or pellet stoves
without full efficiency testing with the testing data submitted and approved by
EPA, or
(C) Pellet stoves on the
List of EPA Exempt Wood Heating Appliances that submitted testing certificates
to the department.
(k)
For sealed duct system devices, $1,500 or the first-year energy savings of the
AED in kWh multiplied by 60 cents. The amount of the credit may not exceed 50
percent of the cost of the AED, materials directly associated with the
installation or construction of the AED and their
installation.
(3) For photovoltaic systems:
(a) On or after January
1, 2012 and before January 1, 2014, the credit allowed under this section is
equal to $2.10 per watt of the installed capacity measured in watts of direct
current at industry standard test conditions; the tax credit is claimed
according to OAR 330-070-0024.
(b)
On or after January 1, 2014 and before January 1, 2015, the credit allowed
under this section is equal to $1.90 per watt of the installed capacity
measured in watts of direct current at industry standard test conditions; the
tax credit is claimed according to OAR 330-070-0024.
(c) On or after January 1, 2015, and before
January 1, 2016, the credit allowed under this section is equal to $1.70 per
watt of the installed capacity measured in watts of direct current at industry
standard test conditions; the tax credit is claimed according to OAR
330-070-0024.
(d) On or after
January 1, 2016, and before January 1, 2017 the credit allowed under this
section is equal to $1.50 per watt of the installed capacity measured in watts
of direct current at industry standard test conditions; the tax credit is
claimed according to OAR 330-070-0024.
(e) On or after January 1, 2017, the credit
allowed under this section is equal to $1.30 per watt of the installed capacity
measured in watts of direct current at industry standard test conditions; the
tax credit is claimed according to OAR 330-070-0024.
(f) A maximum of one credit valued at $6,000
is allowed per residence, per AED. The maximum amount of credit allowed per
year, beginning in the year in which the AED was installed, is $1,500 per year
over a four-year period. The total credit may not exceed 50 percent of the cost
of the system components and their installation.
(4) The sum of any tax credits, rebates or cash payments, including public purpose organization or federal grants or credits and the residential energy tax credit may not exceed system costs, including installation costs to the extent those costs are not already included in the system cost under OAR 330-070-0022(7).
(5) Each of the following device types installed at a dwelling within in a 5-year period will be considered a single device:
(a) Photovoltaic,
(b) Solar radiation for domestic water
heating, or
(c) Solar radiation for
swimming pool heating.
(6) For purposes of the tax credit, the cost of the AED must:
(a) Comply with OAR
330-070-0059 through 330-070-0097, as those rules apply;
(b) Be the system cost of acquiring the
system.
(A) AEDs using an alternative energy
source for only a part of their energy output or savings will have system cost
prorated. System cost must be based on that part of the AED's energy output or
savings that is due to the alternative source;
(B) The department may find an AED to be too
large for a dwelling. In such case the system cost must be prorated. System
cost must be based on the largest useful size of an AED for the dwelling. The
department will determine largest useful size based on the energy needs of the
building; and
(C) The amount of
credit for the original system and any addition may not exceed $1,500 per
year.
(7) For purposes of the tax credit, the eligible system cost of the AED is only those costs necessary for the system to yield energy savings or produce renewable energy such as:
(a) The cost to purchase the
AED.
(b) The cost of materials
directly associated with installation or construction of the AED.
(c) For solar thermal systems, the cost of
solar collectors; thermal storage devices; monitors, meters and controls;
photovoltaic devices used to supply electricity to parts of the system;
installation charges; fees paid for design or building; and ductwork, piping,
fans, pumps and controls that move heat from solar collectors to storage and to
heat buildings.
(d) For solar
photovoltaic systems, solar labor costs and solar material costs including
photovoltaic modules; inverters; storage systems and regulators; monitors,
meters, and controls; wiring and framing materials; trackers; mounting or
racking structures only, no structures beyond those needed for mounting or
racking purposes; shipping; and for owner-built system inspections by a
tax-credit technician, up to $400; permits and fees.
(e) For wind systems, the cost of wind
turbine generators; DC/AC converters, inverters and synchronous inverters;
energy storage (batteries or other methods); tower, foundation and guys;
electric transformers and lines and supports; safety equipment; up to $500 of
wind permitting cost; windmills; pumps, linkage, pump heads, and vacuum
chambers; and obtaining a project site specific computer model wind speed
estimate from a nationally recognized service as approved by the department,
not to exceed $100.
(8) Eligible system costs do not include:
(a)
Unpaid labor (including the applicant's labor);
(b) Operating and maintenance costs;
(c) Land costs;
(d) Legal and court costs;
(e) Patent search fees;
(f) Fees for use permits or variances;
(g) Loan interest;
(h) Vendor rebates, discounts and refunds;
(i) Service contracts;
(j) Cost of moving a used AED from one site
to another;
(k) Cost of repair or
resale of a system;
(l) Any part of
the purchase price which is optional, such as an extended warranty;
(m) Support structures beyond the mounting or
racking hardware necessary for securing equipment; or
(n) Labor for installation, except for solar
photovoltaic, fuel cell, wind, solar radiation and sealed duct systems.
Publications: Publications referenced are available from the agency. Tables referenced are not included in rule text. Click here for PDF copy of table(s).
Stat. Auth.: ORS 469.040; 469B.103; 316.116
Stats. Implemented: ORS 469B.100-469B.118; 316.116
Disclaimer: These regulations may not be the most recent version. Oregon may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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