Business Energy Tax Credit

Oregon facilities that manufacture renewable energy resource equipment* may be eligible for the credit, which has proven valuable in helping to offset the costs of large capital investments.

Eligible costs may include the building, equipment, machinery and other expenses related to the manufacturing of renewable energy products such as solar cells, wind turbines or components manufactured for the exclusive use in products using renewable energy.

Businesses are eligible for a tax credit equal to 50% of up to $40 million in eligible costs. The tax credit may be monetized through transfer to individuals or companies with Oregon tax liability at a discount rate determined by the state. The application for the tax credit is subject to detailed technical and financial review of the project and the applicant's commitment to performance measures including job creation and retention requirements and other economic benchmarks. The credit also is subject to clawbacks should performance measures not be met.

The pre-screening process starts with the intake form (linked at the right), which may lead to an invitation to apply.

*On June 23, 2011, Governor John Kitzhaber signed House Bill 2523, which transfers the duties of the Business Energy Tax Credit for the renewable energy resource equipment manufacturing program from the Oregon Department of Energy to the Oregon Business Development Department (Chapter 474, 2011 Laws).