35% of qualifying project costs
The sum of all incentives, grants, credits, or other public funds may not exceed total project costs
Varies by project
The Oregon Department of Energy periodically releases Opportunity Announcements for tax credits for energy conservation projects. 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 must intent to begin construction within 12 months of the award. Project applicants propose a tax incentive structure.
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
- Certain legal fees related to the development of the project
Interested parties must submit a preliminary certification application. Projects that are determined to meet all qualifications and deadlines will be reviewed as part of a competitive process. Preference is given to those projects that have the highest energy savings over the five-year credit allowance period per tax credit dollar. Other review criteria may include:
- The amount of energy saved over the equipment lifetime
- The project's expected lifespan compared to simple payback period
- The incentive structure and whether the energy savings benefit a party other than the owner
- Benefit-to-cost ratio over the lifetime of the project
- The project implementation plan
- The project financial plan
- Jobs created and sustained
- Local economic conditions of the site location
- Agreement to accept a reduction to the requested tax incentive
- Agreement to a voluntary measurement and verification plan
Projects that advance beyond the competitive process must undergo a technical review before receiving final certification. Check the program web site for Opportunity Announcements and associated application materials and requirements.
First year energy savings must yield a simple payback period of greater than 3 years.