State & Federal Energy Incentives and Information

State Specific Information Here:

How To Use This Guide

The following guide outlines information useful in planning installations of energy efficiency and renewable energy improvements on the farm. This guide is not all inclusive. However, it should provide a starting point to think about some of the opportunities and hurdles that might impact an energy investment decision.

Elements of State Specific Information:

Renewable Energy Financial Incentives

Personal Income Tax: Many states and the federal government offer personal income tax credits or deductions for energy efficiency or alternative energy upgrades.

Sales Tax: Some states offer an exemption on sales tax for energy efficiency or alternative energy purchases. In those states there is no sales tax paid on these purchases.

Property Tax: Most states (though not all) provide that the added value of a renewable device shall not be included in the valuation of the property for taxation purposes. For example, if a renewable energy heating system costs $1,600 to install versus $1000 for a conventional heating system, then the renewable energy system is assessed at $1000 that it would have cost to install the conventional heating system.

Rebates: Rebates can take many different forms. The majority are local and utility specific. In these cases local utilities will offer a credit or cash rebate on a consumer’s electric bill for installing energy efficiency rated appliances or installing a renewable energy source on their farm or business.

Grants: While grants can take many forms, many state and federal grants involve matching funds for up to 50% of the initial investment of an energy efficiency or alternative energy upgrade.

Renewable Energy Standards

Net Metering: If a state has a net metering law, it is likely that a utility must offer some sort of net metering service. However, even if a state does not have a state net metering law, utilities in a state may still offer net metering devices. A net metering law merely ensures that there is a regulatory standard that utilities must meet in offering net metering.

Interconnection standard: These standards normally place limits on the amount of distributed generation or alternative generation that a farm or residence can produce.

Equipment Certification: Some states require that alternative energy equipment meet certain standards. In these states licensed dealers and installers generally need to be used.

Access Laws: Access laws primarily apply to the construction of wind and solar installations. These laws normally take the form of statutes that prohibit or regulate the sorts of easements that can be used in particular states.

Federal Government

Renewable Energy Financial Incentives

Personal Income Tax: Yes, the IRS offers personal tax credits for energy efficiency (Max $500) installations and for residential solar and fuel cell installations (Max $2,000). Also, the IRS gives an exemption on any income from a utility subsidy to a customer for the purchase or installation of an energy conservation device.

Sales Tax: No

Property Tax: No

Rebates: No

Grants: Yes, the Department of Energy offers numerous grants for agricultural and residential investments for efficiency, biomass and alternative energy.

Renewable Energy Standards

Net Metering: No

Interconnection standard: No

Equipment Certification: No

Access Laws: No

For Information on the U.S. Department of Energy Efficiency and Renewable Energy Programs, Click Here

For Information on Nationwide Alternative Energy, Efficiency and Consumer Information, Click Here

For a Complete Listing of All Corporate, Residential, Agricultural and Industrial Financial Incentives and Renewable Energy Standards, Click Here