JULIAN CONRAD JUERGENSMEYER PROFESSOR AND BEN F. JOHNSON … · monetizing renewable energy...
Transcript of JULIAN CONRAD JUERGENSMEYER PROFESSOR AND BEN F. JOHNSON … · monetizing renewable energy...
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MONETIZING RENEWABLE ENERGY INFRASTRUCTURE SYSTEMS
JULIAN CONRAD JUERGENSMEYER PROFESSOR AND BEN F. JOHNSON
CHAIR IN LAW GEORGIA STATE UNIVERSITY
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Tax Incentives for Going Green in the Southeast
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Types of Tax Incentives
Property Tax Incentives
Income Tax Incentives
Sales Tax Incentives
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Property Tax Incentives
Reduced Property Value Base
Energy Systems Re-Characterized, Property Taxed at a Lower Rate
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Reduced Property Value Base
Only 20% of the value of a solar energy electric system is included in the assessment of the property’s value North Carolina– NC Gen. Stat. § 105-275(45)
Reduced valuation rate for the property of a public utility or business that creates electricity through wind Tennessee – Tenn. Code § 67-5-601(e)
Cost of installation and purchase price of renewable energy source not included in property tax Florida – Fla. Stat. § 196.175
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Re-Characterizing Renewable Energy Systems Active solar heating/cooling system re-
characterized as conventional system North Carolina – NC Gen. Stat. § 105-277(g)
Solar energy system re-characterized as personal property Louisiana – La. Rev. Stat. § 47:1706
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Income Tax Incentives
Income tax credit for the cost of purchase and installation of renewable energy systems
Personal deductions for individuals only
For producing green energy
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Income Tax Credit for the Cost of Purchase and Installation of Renewable
Energy Systems
North Carolina – Gen. Stat. § 105-129.16(A) Includes wind, solar, hydroelectric or biomass
equipment and systems Credit – 35% of the cost of the property
South Carolina – S.C. Code § 12-6-3587 Includes solar energy systems only Applicable to commercial or residential property Credit – 25% of the cost of purchase and installation
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Income Tax Credit for the Cost of Purchase and Installation of Renewable
Energy Systems
Louisiana – La. Rev. Stat § 47:6030 Includes wind and solar energy systems Credit – 50% of the first $25,000 of the cost
Florida – Fla. Stat. § 220.192 Includes renewable energy using hydrogen fuel
cells, bio-diesel and ethanol Credit – 75% of the cost of construction, installation
and operation
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Income Tax Credits for Individuals
Deduction for 100% of the cost of installing a wood burning system in the home Alabama – Ala. § 40-18-15(16)
$750 tax personal tax credit for purchasing an energy efficient manufactured home South Carolina – S.C. Code § 4852-870
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For Producing Green Energy
Entities who sell renewable energy get reimbursed at $0.01/kilowatt hour sold Florida – Fla. Stat. § 220.193
Renewable energy includes solar, geothermal, wind, ocean or hydroelectric Credit can be carried over for up to five
years
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Georgia Specifically
Tax credit available for the construction, purchase or lease of clean energy property
Applies to individuals and corporations
O.C.G.A. § 48-7-29.14
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Georgia – What Constitutes Clean Energy Property
Solar energy equipment
Equipment used to convert wind energy into electricity
Bio-mass equipment used to convert wood residuals into usable electricity
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Georgia – Limitations on Tax Credits
Total amount allotted by the state for this credit is $2,500,000 Single family residential – lesser of either
35% of the cost OR $2,500 for solar energy equipment $10,500 for solar electric or wind equipment
Non-single family – lesser of $500,00 or 35% of the total cost
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Sales Tax Incentives
Year-round Incentives Year round tax exemptions Sales tax refunds Caps on the sales tax allowed
Sales tax holidays
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Year-Round 100% Sales Tax Incentives
Biomass materials used in the production of energy Georgia – O.C.G.A. § 48-8-3(83)(A)
Devices which are operated by hydrogen fuel cells, or devices used in manufacturing of, or R&D involving hydrogen or fuel cells South Carolina – S.C. Code § 12-36-2120
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Year Round Sales Tax Incentives, Cont’d
Tax refund on previously paid sales tax on renewable energy using hydrogen fuel cells, bio-diesel or ethanol Florida – Fla. Stat. § 212.08(ccc)
Sales tax on manufactured homes cannot exceed $300 if the homes meet certain EPA standards South Carolina – S.C. Code § 12-36-2110
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Sales Tax Holidays
100% sales tax exemption for certain energy efficient products Usually restricted to products purchased for
consumer or residential use only
States with this exemption Georgia – O.C.G.A. § 48-8-3(82)(A) North Carolina – N.C .Gen. Stat. § 105-164.13(D) South Carolina – S.C. Code § 12-36-2120(77)