Public Power Magazine, May-June 2002

January-February 2004 Page 22

Copyright  2004 by American Public Power Association

State Programs To Support Renewables compiled by Jim Paterson It may be altruistic or it may simply be an effort to fill a vacuum left by a gap in funding from above. It may be Click on your state for information because of political pressure or it may be simply a AL AK AR AZ CA practical move to improve state economies. For whatever CN DE FL HI ID reason, it appears more state governments are providing IL IN IA KS ME grants, loans or other incentives for renewable energy development. MD MA MI MN MS MO MT NE NV NH “Many states have expanded and developed renewable NJ NM NY NC ND energy resources due to their potential to reduce air pollution, control consumer energy costs and reduce OH OK OR PA RI dependence on foreign oil, along with the cost SD TN TX UT VT competitiveness of renewable sources due to improving VA WA WV WI WY technologies.” That’s the way the Council of State Governments put it in a report last year, noting that even in tight budget times it may make sense to devote funding to renewables. “A powerful and more recent driving force is that states have found that, aside from achieving the above effect, renewable energy can be used to stimulate local economies,” the council said. Indeed, many of the incentives provided by states dwell in state development offices and are promoted by officials hoping to expand their state’s economy. Other recent reports note that more states are providing programs for green buildings or are supporting utility green power initiatives or distributed generation – even fuel cells. Many provide tax incentives. Mark Bolinger, a researcher at the Lawrence Livermore National Laboratory in California, said more states have developed formal clean energy funds, often from system benefits charges. Fourteen states now have such funds, and disperse the money through a variety of programs. There are several places to gather more information about such state funding, – including most state government Web sites. The Clean Energy States Alliance (www.cleanenergyfunds.org) offers updates about what is happening on the state level and is developing a comprehensive list of state programs. One of the best sources is the Database for State Incentives for Renewable Energy, which offers clear listings of nearly any incentives available in the state, not just the state-funded programs (www.dsireusa.org) Many of the programs listed here offer tax-incentives for private firms or individuals. However, we have included them because public power utilities may wish to make customers aware of the opportunities. Here is a listing of many of the state-funded programs that support renewable technology. ALABAMA Renewable Fuels Development Program Alabama Department of Economic and Community Affairs Up to $75,000 available in subsidy payments to help defray the interest expense for loans to establish biomass projects. Contact Clarence Mann, 334-242-5290 ALASKA Power Project Loan Fund Alaska Energy Authority Maximum of $1 million available to local utilities, local governments, corporations, councils, nonprofit marketing cooperatives and independent power producers for upgrades to small scale power production, conservation or fuel storage projects. Contact Jim McMillan, 907-269-3000 ARKANSAS Emerging Technology Development Credit Arkansas Department of Economic Development Incentives of up to 50 percent of facility costs for manufacturers of new technology in the areas of photovoltaics, fuel cells, electric vehicles, microturbines or stirling engines. Contact Chris Benson, 501-682-8065 ARIZONA Solar and Wind and Energy System Credits Arizona Department of Commerce Provides a credit against income tax totaling 25 percent of the cost of solar or wind power equipment. Contact Jim Arwood, 602-771-1144

Solar and Wind Equipment Sales Tax Exemption Arizona Department of Commerce Allows a sales tax exemption for solar and wind generation equipment purchases for up to $5,000 per contract. Contact Jim Arwood, 602-771-1144 CALIFORNIA Emerging Renewables Program California Energy Commission Rebates available for the purchase of photovoltaics, small wind turbines, fuel cells and solar thermal systems of 30 kW or less. Contact Energy Call Center, 800-555-7794

Energy Financing Industrial Development Bond Program California Power Authority Below-market-rate loans of from $2 million to $10 million to companies that purchase and install renewable, energy-efficient or clean distributed generation systems or to manufacturers of such systems. Contact Energy finance specialist, 916-651-9750

Existing Renewable Facilities Program California Energy Commission Designed to support existing renewable technology following restructuring; provides payments per kilowatt-hour, based on the type of technology and other factors. Contact Tim Tutt, 916-654-4590

New Renewable Resources Account California Energy Commission Aimed at development of new utility-scale renewable generation with funding provided through auctions where producers bid for incentives. Variety of energy sources have been successfully bid, with wind generation the leader. Contact Tim Tutt, 916-654-4590

Self Generation Program California Public Utilities Commission Incentives offered to residential and commercial customers to install grid-tied distributed generation resources and renewables. Includes payments of from $1-$4.50/watt for up to 1.5 MW. Contact John Galloway, 415-703-2565

Solar or Wind Energy System Credit California Franchise Tax Board Provides personal and corporate income tax credits of 7.5 percent of cost for purchase and installation of solar and wind energy systems with generating capacity up to 200 kW. Contact information specialist, 800-555-7794 CONNECTICUT Connecticut Clean Energy Fund Provides loans grants and subsidies for renewable research and education, project development, demonstration projects and commercially viable projects involving a wide range of renewable technology. Contact Richard Barredo, 860-563-0015

Local Option For Property Tax State of Connecticut allows municipalities to offer property tax exemptions to renewable energy systems Contact local tax assessor’s office. DELAWARE Energy Alternatives Rebate Department of Administrative Service Established as part of restructuring act in 1999 and intended to provide rebates for qualifying photovoltaic, solar water heating, wind turbine and geothermal systems – with funding up to $250,000 for commercial projects and up to $22,500 for residential projects. Contact Charlie Smisson, 302-739-5644 FLORIDA Solar Energy Equipment Exemption Solar energy systems are exempt from sales and use tax and other related state taxes. Contact R. Bruce Kershner, 407-339-2010 HAWAII Solar and Wind Energy Credit Hawaii Department of Taxation Allows individuals or corporations to claim an income tax credit of 20 percent of the cost of installation and equipment for wind generation and 35 percent for solar equipment for a maximum of $250,000. Contact Maria Tome, 808-587-3809

High Technology Business ` Investment Tax Credit Hawaii Department of Taxation A 100 percent tax credit over five years (for up to to $200,000 per year for a total of $2 million) is available for investments in renewable and other high-tech businesses that meet certain qualifications. Contact Maria Tome, 808-587-3809 IDAHO Solar Wind and Geothermal Deduction Idaho Department of Water Resources Allows for income tax deduction of 40 percent of cost of renewable device used for generation or heating for total deduction of $20,000. Contact John Crockett, 208-327-7962

Low Interest Loans for Renewable Energy Resources Idaho Department of Water Resources Loans of up to $100,000 are available at a 4 percent interest rate for renewable projects for individuals and corporations. Contact John Crockett, 208-327-7962 ILLINOIS Clean Energy Community Foundation Grants Illinois Clean Energy Community Foundation Independent foundation has awarded 432 grants totaling $33.9 million in two years. Grants, loans and other incentives available for charitable organizations, educational institutions and local government agencies involved in large-scale renewable projects and small scale with capacity of 20 to 50 kW. Contact Ed Miller, 312-372-5191

Renewale Energy Resources Program Rebates Department of Commerce and Economic Opportunity Grants for large systems and rebates for small systems that use renewable technology – maximum of $5,000 for each installed project. Contact Rex Buhrmester, 217-557-1925 INDIANA Alternative Power and Energy Grant Program Energy and Recycling Office Provides 30 percent of project costs up to $30,000 for renewable generation available to businesses and local governments. Contact Philip Powlick, 317-232-8970

Distributed Generation Grant Program Energy and Recycling Office Grants of up to $30,000 are offered for businesses and institutions who install and evaluate alternative energy technology. Contact Ethan Rogers, 317-232-8961

Renewable Energy Systems Exemption Energy and Recycling Office Property tax incentives provided for solar, wind, hydro power and geothermal projects for commercial and residential projects. Contact Philip Powlick, 317-232-8970 IOWA Alternative Energy Revolving Loan Program Iowa Energy Center Loans of up to $250,000 offered for individuals or organizations that build renewable energy production facilities. Provides 0 percent interest on loan of half the amount required. Contact Keith Kutz, 515-294-8819

Energy Efficiency and Renewable Energy Research Grants Iowa Energy Center Grants available for research on renewables. Contact Keith Kutz, 515-294-8819

Methane Gas Tax Exemptions Iowa Department of Natural Resources Offers methane gas conversion property tax exemption on real and personal property and a replacement generation tax exemption for all energy generated from methane gas conversion. Contact Jim Bodensteiner, 515-281-8416

Property Tax Exemption for Renewable Energy Systems Iowa Department of Natural Resources Provides exemption on taxes on market value added to property by solar or wind energy systems. Contact Angela Chen, 515-281-4736 KANSAS Renewable Energy Property Tax Exemption Kansas Corporation Commission Renewable energy installations are exempt from property taxes Contact Jim Ploger, 785-271-3349

State Energy Program Grants Kansas Corporation Commission Grants of varying amounts (generally $10,000-$20,000) available for projects involving renewable energy. Contact Jim Ploger, 785-271-3349 MAINE Renewable Resources Matching Fund Program Maine Technology Institute Supports renewable resource research and development with grants of up to $50,000 to cover 50 percent of project costs. Aimed at nonprofit and institutional organizations. Contact Janet Yancey-Wrona, 207-852-4790 MARYLAND Corporate Tax Incentives Maryland Energy Administration State law gives counties the option to provide a tax credit to corporations for buildings equipped with solar or geothermal systems or conservation devices. Also, an income tax credit is available for businesses with green buildings and sales and income tax incentives are available for companies purchasing high-efficiency appliances, hybrid vehicles and renewable energy systems Contact Tim LaRonde, 410-260-7539

Fuel Cell Sales Tax Incentive Revenue Administration Division Sales tax exemption provided for installers and contractors working with fuel cells generating at least two kW. Contact Louise Collins, 410-260-7980

Municipal Grant Funding Limited funds are available for municipalities in the form of grants, for a variety of technology, and usually requires matching municipal money. Contact Tim LaRonde, 410-260-7539 MASSACHUSETTS Clustered PV Installation Program Massachusetts Technology Collaborative Grants offered for photovoltaics through six nonprofit organizations Contact Sam Nutter, 508-870-0312 ext 277 Fuel Cell Grants Massachusetts Technology Collaborative Provides up to 25 percent of total cost for installation of fuel cells, up to $2 million per project. Smaller feasibility grants are also available up to $150,000. Contact Jim Christo, 508-870-0312 ext. 263

Green Power Pre-Development Financing Initiative Massachusetts Technology Collaborative Grants and loans available totaling $2 million for grid-connected generation of 500 kW or more that uses renewable technology. Contact Jim Christo, 508-870-0312 ext. 263

Open PV Installation Program Massachusetts Technology Collaborative Nine organizations were given grants to facilitate the installation of photovoltaics throughout the state, and provide incentives for both small and large systems. Contact Sam Nutter, 508-870-0312 ext 277

Tax Exemptions Massachusetts Division of Energy Resources Credits and exemptions available for income taxes, business taxes, corporate excise taxes, sales taxes and, in some jurisdictions, property taxes for sales or installation of renewable equipment. Contact Karin Pisiewski MICHIGAN Alternative Energy Property and Real Tax Exemptions NextEnergy Companies engaged in research, development or production of renewable energy technology are exempt from a variety of state and local taxes, including personal and real property taxes. Contact Rachel Kuntzsch, NextEnergy

Biomass Energy Program Grants Department of Consumer and Industry Services Grants for bioenergy and biofuel projects ranging from $5,000 to $30,000. Contact Kelly Launder, 517-241-6223

Community Energy Project Grants Michigan Department of Consumer and Industry Services Public and nonprofit institutions are eligible for these grants of up to $6,000 for a variety of renewable resource projects. Contact John Sarver, 517-241-6280

Energy Efficiency Grants Michigan Public Service Commission Grants in varying amounts are available for energy-efficiency projects and some renewable energy efforts, particularly fuel cells. Contact Tom Stanton, 517-241-6086 MINNESOTA Sales and Property Tax Exemptions Department of Commerce Wind generation equipment, photovoltaic devices and other efficiency equipment is exempted from state sales tax and property taxes. Contact Mike Taylor, 651-296-6830

Wind, Hydro, Digester Energy Generation Incentive Department of Commerce Initially this incentive offered 1.5 cents per kilowatt-hour payment for electricity generated by wind energy projects less than 2 MW. Has been expanded to include some hydroelectric and methane digesters Contact Mike Taylor, 651-296-6830 MISSISSIPPI Energy Investment Program Mississippi Development Authority Low-interest loans with an interest rate 2 percent below prime are available for 85 percent of the cost of a renewable energy project costing up to $300,000 Contact Demetra Foster, 601-359-6600 MISSOURI Energy Loan Program Department of Natural Resources Low-interest rate loans totaling $37 million in 15 years have been given for schools and public facilities for energy-efficiency and renewable energy projects. Contact Bernard Thompson, 573-751-7466

Wood Energy Production Credit Department of Natural Resources Corporations processing forestry industry residue into fuel get income tax credit of $5 per ton of processed material. Contact Sam Orr, 573-751-8386 MONTANA Tax Incentives Department of Environmental Quality A variety of tax credits and exemptions, including one cutting taxes for production of at least one MW from renewable sources are available for corporations and individuals. One program allows a 35 percent state tax credit for development of wind generation. Contact Mark Hines, 406-444-6769

Universal System Benefits Program Montana Public Service Commission Utility suppliers contribute 2.4 percent to the fund, which supports renewable energy resources, energy efficiency and low-income energy assistance. Funds not used by utility collecting them go back to state for disbursement. Contact Will Rosquist, 406-444-6359 NEBRASKA Dollars and Energy Savings Loans Nebraska Energy Office Low-interest loans (half of loan amount at 0 percent) is available for residential and commercial energy-efficiency projects. Renewable energy project loans are available, but have not been sought. Contact Jack Osterman, 402-471-2867 NEVADA Tax Incentives Commission on Economic Development Sales and property tax abatement is available for producers of renewable energy. Contact Susan Combs, 775-687-4325 NEW HAMPSHIRE Local Option Property Tax Exemption Office of State Planning and Energy Programs Allows each city and town to offer an exemption on property taxes. Contact Joseph Broyles, 603-271-8341 NEW JERSEY Clean Energy Program Board of Public Utilities Societal benefits charge collected from customers pays for grants of from 30 to 70 percent of costs for renewable systems at a rate of from $3.75 to $5.50 per watt, up to one MW. Contact Cassandra Kling, 609-292-7471

Renewable Energy Advance Power Program Board of Public Utilities Grants available for distributive renewable electricity generation projects paying up to 20 percent of costs. Tax-exempt bond financing may also be available for projects by schools or municipalities. Contact Cassandra Kling, 609-292-7471

Solar and Wind Energy Systems Exemption Board of Public Utilities Full exemption offered on state sales tax for all solar and wind generation equipment. Contact Cameron Johnson, 609-777-3316 NEW MEXICO Renewable Energy Production Tax Credit New Mexico Energy, Minerals and Natural Resources Department Tax credit of one cent per kilowatt-hour available for companies generating electricity from wind, solar or biomass. Contact Harold Trujillo, 505-827-7804 NEW YORK Power Systems, Distributed Generation and CHP grants New York State Energy Research and Development Authority Grants up to $1 million available for distributed generation and combined heat and power in several categories, including feasibility, design, product development and demonstration of projects. Contact Mark Torpey, 518-862-1090 ext. 3316

Renewables and R&D Grant Program New York State Energy Research and Development Authority Competitive research program offers multi-stage approach to support, focusing on product development and commercialization. Contact Jeff Peterson, 518-862-1090 ext. 3288

Solar and Wind Energy Systems Exemption New York State Energy Research and Development Authority Provides 15-year real property tax exemption for solar and wind energy systems. Contact Adele Ferranti, 518-862-1090- ext. 3206 NORTH CAROLINA Energy Improvement Loan Program North Carolina Department of Administration Loans available to businesses and local governments and nonprofits for energy efficiency and use of renewables. Total of $500,000 with 1 percent interest rate. Contact Starlette Brown, 919-733-1897

Renewable Energy Tax Credit North Carolina Solar Center Personal and corporate tax credits available covering 35 percent of costs (up to $250,000 for corporations) of renewable projects. Contact Bob McGuffey, 919-515-3480 NORTH DAKOTA Tax Incentives Division of Community Service Variety of tax incentives available for qualifying renewable energy systems, including property tax reductions and exemptions, sales tax exemptions for wind generation, credit for corporate taxes and personal tax credits. Contact Joe Murphy, 701-328-2697 OHIO Conversion Facilities Tax Exemption Ohio Department of Development Exemption for individuals and corporations from property tax, sales and use tax and franchise tax for tangible property used in energy conversion, thermal improvements and solid waste energy conversion. Contact John Greenway, 614-466-7406

Distributed Energy Resources Grants Ohio Department of Development Provide matching grants up to $75,000 for distributed generation projects using renewable technology. Contact Thomas Maves, 614-466-8425 Fuel Cell Grant Program Ohio Department of Development Three-year initiative unveiled in early 2002 puts $100 million toward research, project demonstration and job creation with fuel cells. Contact Mike McKay, 614-644-9159

Renewable Energy Loans Ohio Department of Development One of four projects funded by the Energy Efficiency Revolving Loan Fund. Cuts nearly in half interest rate on loans up to $25,000 for individuals and $500,000 for businesses. Contact Judy Jones, 614-466-8139 OKLAHOMA Zero Emissions Facilities Production Tax Credit Oklahoma Department of Commerce Income tax credit per kilowatt-hour for producers of electricity using renewable energy resources from a zero emissions facility. Contact Gordon Gore, 405-815-6552 OREGON Business Energy Tax Credit Department of Energy Tax credit of up to 35 percent of renewable project costs for a total of up to $10 million over five years. Contact Suzanne Dillard, 503-373-7565

Renewable Energy Resources Grants Energy Trust of Oregon Energy Trust is just beginning to provide some of its $45 million per year budget to renewables through grants to businesses, local government, nonprofits and residents. Contact Peter West, 503-493-8888

Renewable Energy Systems Exemption Department of Energy Property tax exemption for any renewable system, primarily by individuals. Contact Diana Enright, 503-378-4040

Small Scale Energy Loan Program Department of Energy Loans available to individuals, local governments, businesses and other institutions for renewable energy projects. Loans ranging from $20,000-$20 million come from sale of state bonds. Contact Dave Stevens, 503-378-4040 PENNSYLVANIA Energy Harvest Grant Program Two state agencies together support $5 million in grants to commercial, nonprofit, agriculture and local government. Contact Kurt M. Knaus, 717-783-4674 Public Benefit Programs Public Utility Commission Funds were established for each of the state’s four major distribution utilities and individual commissions for each fund determines assignments of grants and other incentives. Contact Calvin Birge, 717-783-1555 RHODE ISLAND PV and Wind Rebate Program Department of Administration A rebate for local government, business and non-profits of up to 50 percent of the system costs for PV and wind. Contact Julie Capobianco, 401-222-3370

RFP for Purchase/Sale of Renewable Electricity to Large Customers Department of Administration Customer rebate or purchase incentive for purchase of renewable energy supply by large customer or retail energy supplier. Awards available for up to $500,000. Contact Julie Capobianco, 401-222-3370

Small Customer Incentive Program for Green Power Marketers Department of Administration Incentives for suppliers of green power to sign up residential and small business customers – up to $135 for private residences and up to $250 for businesses. Contact Julie Capobianco, 401-222-3370

Tax Incentives Department of Administration Sales, property and personal tax exemptions, credits or refunds for qualifying renewable energy systems. Contact Julie Capobianco, 401-222-3370 SOUTH DAKOTA Renewable Energy Systems Exemption Governor’s Office of Economic Development Commercial or private renewable energy systems are exempt from property taxes (50 percent of costs for commercial systems). Contact Mary Cerney, 605-773-3301

Wind Energy Property Tax Exemption Department of Revenue and Regulation Commercial wind energy projects are assessed at the lower local level for property taxes rather than the state level. Contact Michael Kenyon, 605-773-3311 TENNESSEE Small Business Energy Loan Program Tennessee Department of Economic and Community Development Low-interest loans of up to $100,000 are available for renewable energy and efficiency projects by businesses with under $3.5 million in gross sales or receipts. Contact Clinton Berry III, 615-253-1943

Wind Energy Systems Exemption Wind energy systems operated by public utilities, businesses or industrial facilities are taxed at one third of their installed costs. Contact Taxpayer assistance, 800-342-1003 TEXAS Tax Exemptions Texas General Services Commission Property tax exemptions and franchise tax deductions are available for companies involved in development of renewable resources. Contact Pam Groce, 512-463-1889 UTAH Renewable Energy Tax Credit Utah Energy Office Corporate and residential tax credits are available on income taxes for the cost of installation of renewable energy systems, up to $50,000. Contact Dave Lochtefeld, 801-538-5443 VERMONT Tax Incentives Renewable Energy Vermont Property tax and sales tax exemptions are available for energy generation from renewables. Contact Andrew Perchlik, 802-229-0099 VIRGINIA Local Option Property Tax Exemption for Solar Department of Mines, Minerals and Energy Gives municipalities the option of exempting solar energy equipment from local property taxes; 17 counties now participate. Contact Ken Jurman, 804-692-3222 WASHINGTON High Technology Product Manufacturers Excise Tax Exemption Cooperative Extension Energy Program Exempts qualifying high-tech manufacturers, including those developing alternative energy resources, from state corporate excise taxes. Contact Michael McSorley, 360-956-2008

Sales and Use Tax Exemption WesternSUN Sales and use tax exemption extended to include solar, wind and landfill gas generating facilities Contact Mike Nelson, 206-396-8446 WEST VIRGINIA Tax Incentives West Virginia Development Office Property tax rates and business and occupation taxes for utilities are reduced for renewable energy systems. Contact Jeff Herholdt, 304-558-0350 ext. 762 WISCONSIN Focus on Energy Cash Back Reward WinsconSUN Rewards offered for residential and non-residential solar water heat, solar space heat, photovoltaics, wind, biomass, hydroelectric and geothermal heat pumps to maximum of $35,000 or 25 percent of project cost. Contact Niels Wolter, 608-836-1290

Solar and Wind Energy Equipment Exemptions Wisconsin Department of Administration Residential and commercial solar and wind projects are exempt from taxes on increased value of property from equipment. Contact Alex De Pillis

Wisconsin Focus on Energy Grant Programs WisconSUN Grants of up to $35,000 are available for commercial and nonprofit institutions and local governments and schools for renewable energy projects. Grants cover marketing, implementation, demonstration efforts and feasibility studies. Contact Niels Wolter, 608-836-1290 WYOMING Renewable Energy Sales Tax Exemption Department of Revenue Provides exemption from state excise tax for equipment that generates electricity from renewable resources. Contact Robert Thompkins, 307-777-5293