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

Current through Register Vol. 63, No. 7, July 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.