Renewable Energy and Energy Efficiency Tax Incentive Resources

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Renewable Energy and Energy Efficiency Tax

Incentive Resources

-name redactedInformation Research Specialist

March 23, 2009

Congressional Research Service

7-....

www.crs.gov

R40455

CRS Report for Congress

Prepared for Members and Committees of Congress

Renewable Energy and Energy Efficiency Tax Incentives

Summary

The following list of authoritative resources is designed to assist in responding to a broad range of

constituent questions and concerns about renewable energy and energy efficiency tax incentives.

Links are provided for the following: the full text of public laws establishing and extending

federal renewable energy and energy efficiency incentives; federal, state, and local incentives

resources; incentive resources grouped by technology type (solar, wind, geothermal, and

biomass); CRS reports on this topic; and federal grants information resources. The last section of

this report includes tables displaying popular incentives, the corresponding U.S. Code citations,

and current expiration dates of those incentives.

This list reflects information that is currently available. It will be updated regularly as other

relevant material becomes available.

Congressional Research Service

Renewable Energy and Energy Efficiency Tax Incentives

Contents

Full Text of Tax Incentive Legislation ............................................................................................. 1

Federal Incentives ............................................................................................................................ 1

State and Local Incentives ............................................................................................................... 2

Incentives by Technology Type ....................................................................................................... 3

Biomass ..................................................................................................................................... 3

Geothermal ................................................................................................................................ 3

Solar........................................................................................................................................... 3

Wind .......................................................................................................................................... 4

CRS Reports on Federal Incentives ................................................................................................. 4

Recent Legislation ..................................................................................................................... 4

General ...................................................................................................................................... 4

Vehicles and Fuels ..................................................................................................................... 4

Wave, Tidal, In-Stream .............................................................................................................. 5

Wind Power ............................................................................................................................... 5

Popular Incentives Tables ................................................................................................................ 5

Grants Information........................................................................................................................... 6

CRS Reports on Grants ............................................................................................................. 6

Tables

Table 1. U.S. Code Citations and Expiration Dates for Popular Renewable Energy an

Energy Efficiency Tax Incentives/Credits .................................................................................... 5

Table 2. Alternative Motor Vehicle Credit ....................................................................................... 5

Contacts

Author Contact Information............................................................................................................. 6

Congressional Research Service

Renewable Energy and Energy Efficiency Tax Incentives

Full Text of Tax Incentive Legislation

Energy Policy Act of 2005 (EPACT) P.L. 109-58. The tax provisions are located in Title XIII.

Emergency Economic Stabilization Act of 2008 (EESA) P.L. 110-343. The tax provisions are

located in Titles I, II, and III of Division B, the Energy Improvement and Extension Act of 2008.

American Recovery and Reinvestment Act of 2009 (ARRA) P.L. 111-5. Conference Report with

full text of the act (H.R. 1, as passed, P.L. 111-5) and the Joint Explanatory Statement. The tax

provisions are located in Division B, Title I.

Federal Incentives

This section lists and describes several resources that contain information about federal incentives

available to support energy efficiency and renewable energy.

Tax Incentives Assistance Project (TIAP)

http://www.energytaxincentives.org/

This website is sponsored by a number of government agencies, nonprofit groups, and other

organizations. It focuses solely on information about federal tax incentives. Information is

organized into categories for consumers, businesses, and builders/manufacturers. The site

includes updates about enacted federal legislation and provides links to Internal Revenue Service

(IRS) tax forms.

Environmental Protection Agency (EPA) Energy Star

http://www.energystar.gov/index.cfm?c=products.pr_tax_credits

This website has a page on “Federal Tax Credits for Energy Efficiency.” The information on that

page is organized into categories for consumers (home improvements, cars, solar energy, fuel

cells), home builders, appliance manufacturers, and commercial buildings. The site includes a

frequently asked questions (FAQ) section providing answers about energy efficiency tax credits.

Department of Energy (DOE) Financial Opportunities

http://www1.eere.energy.gov/financing/

This website is focused mainly on information about matching funds, grants, and financing.

Information is organized into categories for consumers, business/industry/universities, inventors

(small business), federal energy managers, states, and Native American tribes. The site includes a

section on energy efficiency and consumer home financing.

U.S. Department of Energy Alternative Fuels and Advanced Vehicles Data Center (AFDC)

http://www.eere.energy.gov/afdc/

This website presents information about incentives for alternative fuels (renewable fuels and

others) and vehicles. A key link provides access to “State and Federal Incentives and Laws.”

Incentives covered include grants, tax credits, loans, rebates, regulatory exemptions, fuel

discounts, and technical assistance. Information on state incentives is made available through a

Congressional Research Service

Renewable Energy and Energy Efficiency Tax Incentives

national map and through summary tables organized by type of incentive, regulation,

technology/fuel, and user. The information about state incentives is updated after each state

legislature’s session ends. Information about federal incentives is updated after pertinent

legislation is enacted into law. Another link provides access to “Laws and Incentives Enactment

History.”

U.S. Department of Energy (DOE) Clean Cities Financial Opportunities

http://www1.eere.energy.gov/cleancities/financial_opps.html

This website presents information about incentives for alternative fuels and advanced

technologies. A link to “Government Sources” provides information about funding opportunities

through federal grant-making agencies (Grants.gov), Metropolitan Planning Organization (MPO),

the Congestion Mitigation and Air Quality (CMAQ) Program, and various EPA programs. A link

to “Solicitations” provides information about business funding opportunities that cover a variety

of changing topics that have included plug-in hybrid vehicles, hydrogen vehicles, and

transportation planning. Clean Cities Coordinators are available to help with funding applications.

Department of Housing and Urban Development (HUD) Energy Efficient Mortgages

Program

http://www.hud.gov/offices/hsg/sfh/eem/energy-r.cfm

HUD’s website provides information on Energy Efficient Mortgages. These mortgages can help

homeowners finance the cost of adding energy-efficiency features to new or existing housing as

part of their Federal Housing Authority-insured home purchase or refinance.

Alliance to Save Energy (ASE) Home and Vehicle Tax Credits

http://www.ase.org/content/article/detail/2654

ASE’s website organizes information into categories on energy efficiency incentives for home

improvements, hybrid vehicles, and solar energy. The site includes details on eligible equipment,

credit limits, and credit expiration dates.

State and Local Incentives

This section covers websites that list and describe state and local incentives available to support

energy efficiency and renewable energy.

Database of State Incentives for Renewables and Efficiency (DSIRE)

http://www.dsireusa.org/

DSIRE’s website is sponsored by the Interstate Renewable Energy Council (IREC). IREC is a

nonprofit organization focused on standards, guidelines, and other activities to support renewable

energy. This site contains information about various types of energy efficiency and renewable

energy financial incentives provided by state and local governments and utility companies.

Summary data is accessed through a national map—and several additional special topic maps—

that are linked to data on each state. Alternatively, the data can be searched by technology (solar,

wind, geothermal), sector (residential, commercial/industrial, government, utility), and incentive

type (tax credits, bonds, grants, loans), and eligible and implementing sectors. The site is updated

weekly. Also, the homepage includes a map-link to a list of federal incentives.

Congressional Research Service

Renewable Energy and Energy Efficiency Tax Incentives

U.S. Department of Energy (DOE) State Activities and Weatherization Assistance

http://www.eere.energy.gov/weatherization/

DOE’s website on the Weatherization Assistance Program has information about how to apply for

weatherization funding assistance. The site also has a “state activities” link, which provides

information about state-level energy assistance programs.

Incentives by Technology Type

The following are links to resources by type of renewable energy.

Biomass

Database of State Incentives for Renewables and Energy Efficiency (DSIRE). Incentive for

Biomass

http://www.dsireusa.org/

Energy Efficiency and Renewable Energy. Alternative Fuels and Advanced Vehicles Data Center.

State and Federal Incentives and Laws

http://www.eere.energy.gov/afdc/progs/fed_summary.php/afdc/US/0

Environmental Protection Agency. Funding Database Biomass/Biogas

http://www.epa.gov/chp/funding/bio.html

Geothermal

Database of State Incentives for Renewables and Energy Efficiency (DSIRE). Incentives for

Geothermal Heat Pumps and Geothermal Electric

http://www.dsireusa.org/

Geothermal Heat Consortium – GeoExchange.org. New Federal Tax Credits for Geothermal Heat

Pump Systems

http://www.geoexchange.org/component/content/article/90-new-federal-tax-credits-.html

Solar

Alliance to Save Energy. Energy-Efficiency Home and Vehicle Tax Credits. Solar Energy and

Fuel Cell

http://www.ase.org/content/article/detail/2654#fuelcells_solar

Database of State Incentives for Renewables and Energy Efficiency (DSIRE). Incentives for Solar

Technology

http://www.dsireusa.org/

Energy Star. Federal Tax Incentives for Renewable Energy. Tax Incentives for Solar Energy

Systems

http://www.energystar.gov/index.cfm?c=products.pr_tax_credits#s4

Congressional Research Service

Renewable Energy and Energy Efficiency Tax Incentives

Solar Energy Industries Association. Solar Bills/Legislation

http://www.seia.org/cs/solar_bills

Solar Energy Industries Association. Frequently Asked Questions on the Solar Investment Tax

Credit

http://www.seia.org/galleries/pdf/ITC_Frequently_Asked_Questions_10_9_08.pdf

Tax Incentives Assistance Project. Consumer Tax Incentives. Solar Energy Systems

http://www.energytaxincentives.org/consumers/

Tax Incentives Assistance Project. Businesses Tax Incentives. Solar Energy Systems

http://www.energytaxincentives.org/business/renewables.php

Wind

American Wind Energy Association. Legislative Affairs

http://www.awea.org/legislative/

Database of State Incentives for Renewables and Energy Efficiency (DSIRE). Incentives for

Wind

http://www.dsireusa.org

CRS Reports on Federal Incentives

A number of CRS reports provide information about federal energy efficiency and/or renewable

energy incentives:

Recent Legislation

CRS Report R40412, Energy Provisions in the American Recovery and Reinvestment Act of 2009

(P.L. 111-5)

General

CRS Report RL33831, Energy Efficiency and Renewable Energy Legislation in the 110th

Congress

CRS Report RL33578, Energy Tax Policy: History and Current Issues

CRS Report RL34162, Renewable Energy: Background and Issues for the 110th Congress

Vehicles and Fuels

CRS Report RL32979, Alcohol Fuels Tax Incentives

CRS Report R40168, Alternative Fuels and Advanced Technology Vehicles: Issues in Congress

CRS Report R40110, Biofuels Incentives: A Summary of Federal Programs

CRS Report RS22558, Tax Credits for Hybrid Vehicles

CRS Report RS22351, Tax Incentives for Alternative Fuel and Advanced Technology Vehicles

Congressional Research Service

Renewable Energy and Energy Efficiency Tax Incentives

Wave, Tidal, In-Stream

CRS Report RL33883, Issues Affecting Tidal, Wave, and In-Stream Generation Projects

Wind Power

CRS Report RL34546, Wind Power in the United States: Technology, Economic, and Policy

Issues

Popular Incentives Tables

Table 1. U.S. Code Citations and Expiration Dates for Popular Renewable Energy an

Energy Efficiency Tax Incentives/Credits

Type of Credit

U.S. Code Citation

Expiration Date

Biofuels Production Tax Credit (PTC)

26 U.S.C. § 40A

12/31/2009

Business Solar and Fuel Cell Investment Tax Credit

(ITC)

26 U.S.C. § 48(a)(3)

12/31/2016

Energy Efficiency Appliance Credit

26 U.S.C. § 45M

12/31/2008-12/31/2010a

Energy Efficient Commercial Buildings Deduction

26 U.S.C. § 179D

12/31/2013

Energy Efficient New Homes Tax Credit for

Homebuilders

26 U.S.C. § 45L

12/31/2009

Renewable Energy Production Tax Credit (PTC)

26 U.S.C. § 45

Wind (12/31/2012)

Biomass, Geothermal,

Hydroelectric, and

Marine and

Hydrokinetic

(12/31/2013)

Residential Energy Efficient Property Credit (Solar

and Fuel Cell Tax Credit)

26 U.S.C. § 25D

12/31/2016

Source: U.S. Code

Depending on efficiency level of appliance

Table 2. Alternative Motor Vehicle Credit

Type of Credit

U.S. Code Citation

Expiration Date

Advanced Lean Burn Technology Motor

Vehicle Credit

26 U.S.C. § 30B

12/31/2010

Fuel Cell Motor Vehicle Credit

26 U.S.C. § 30B

12/31/2014

New Qualified Plug-In Electric Drive Motor

Vehicles

26 U.S.C. § 30B

12/31/2014

Qualified Plug-In Electric Motor Vehicle

Conversion Credit

26 U.S.C. § 30B

12/31/2011

Congressional Research Service

Renewable Energy and Energy Efficiency Tax Incentives

Type of Credit

U.S. Code Citation

Expiration Date

Qualified Alternative Fuel Motor Vehicle

Credit

26 U.S.C. § 30B

12/31/2010

Qualified Hybrid Motor Vehicle Credit

26 U.S.C. § 30B

12/31/2009

Source: U.S. Code

Grants Information

Catalog of Federal Domestic Assistance (CFDA)

http://www.cfda.gov/

The CFDA is the primary source of federal grants program information, although actual funding

depends upon annual congressional budget appropriations. The CFDA is available on the Internet.

Many federal grants do not provide funding directly to individuals, but rather to states, local

governments, universities, and tribal entities. Check the “applicant eligibility” section in the

CFDA program description to see who may apply. Individuals may be eligible to apply for funds

after they have been distributed at the state and local level, through their state energy offices or

other contact listed in the CFDA program description.

Grants.gov

http://www.grants.gov

Federal grant funding opportunities are also posted on the website Grants.gov. Grants.gov enables

grant seekers to electronically find and apply for competitive grants from all federal agencies.

CRS Reports on Grants

CRS Report RL34035, Grants Work in a Congressional Office

CRS Report RL32159, How to Develop and Write a Grant Proposal

CRS Report RL34012, Resources for Grantseekers

Author Contact Information

(name redacted)

Information Research Specialist

#redacted#@crs.loc.gov, 7-....

Congressional Research Service

(name redacted)

Information Research Specialist

#redacted#@crs.loc.gov, 7-....

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