Oregon Business Energy Tax Credit
The state of Oregon allows businesses to receive a tax credit for either building sustainable energy power generators, building equipment that allows others to produce energy or reducing their energy use. The business can claim a tax credit of 35 percent of the total costs of the project. The business does not have to be based in Oregon, but the project must take place in Oregon.
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Time Frame
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Oregon provides an accelerated tax credit option. According to the Department of Energy, the business can receive a tax credit for 10 percent of the project costs in each of the first two years, and then 5 percent per year in the remaining years. The business can claim the full tax credit in the first year if the total expenses are less than $20,000. If a business spends more in one year than it can deduct, the business can carry over these costs for a maximum of eight years. This accelerated tax credit is available for all types of projects that qualify for the tax credit.
Partnerships
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Government agencies, federally recognized Indian tribes and incorporated nonprofits may still be eligible to receive the Oregon Business Energy Tax Credit, even if they do not owe state taxes. These organizations can sell their right to receive the tax credit to a for-profit business that does owe taxes in Oregon. According to the state of Oregon, a for-profit business can also sell its right to receive this tax credit to another for-profit business.
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Applying
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To qualify for the tax credit, a business must send an application to the state of Oregon before starting construction on the project. According to the Environmental Protection Agency, the business must pay a fee of 0.0075 percent of the total cost of the project before the state will review a project. Oregon has a limited amount of funds available for the tax credit, and not all projects that meet the qualification standards will receive the tax credit.
Qualification
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The business energy tax credit applies to new projects. According to the state of Oregon, maintenance and repair costs do not qualify for the tax credit, and costs to replace old equipment or bring old equipment up to current state environmental standards are also not eligible. A broad range of costs related to a new project qualify, including the cost to obtain state construction permits and additional fees that a bank charges the business to obtain a loan.
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