Residential Energy Tax Credits

The Oregon legislature has passed House Bill 3672, which changes the Oregon Department of Energy’s tax credit programs.

The RETC program is extended by HB 3672 to January 1, 2018, except for the alternative fuel vehicle credit (including electric vehicles) which retains its existing sunset of January 1, 2012. Amendments to the program are effective beginning January 1, 2012.

HB 3672 eliminates some appliances such as dishwashers, clothes washers, refrigerators, plus air conditioners and boilers.

Full Summary HB3672 RETC Final Rules (redline version effective January 1, 2012)

You can get a credit on your Oregon income taxes for making your home more energy-efficient and helping preserve Oregon's environment.

Below is a list of the energy efficient products/technologies that are eligible for a tax credit. Click on the heading to go to the page that explains the credit, lists qualifying equipment, has application forms and instructions.

Appliances
Clothes Washers	(ended 12/31/11)
Dishwashers
Refrigerators
Fuel Cells
Heating and Air Conditioning Systems
Central Air Conditioning Systems (ended 12/31/11)
Duct Sealing
Ductless Heat Pumps
Furnaces
Boilers (ended 12/31/11)
Geothermal Space Heating/Ground-source Heat Pumps
Heat Pump Systems
Heat Recovery and Energy Recovery Ventilation System
Wood and Pellet Stoves
HVAC Technician Information
Solar
Solar Electric Systems (Photovoltaic)
Solar Space Heating
Solar Water Heating
Water Heating Systems
Solar Water Heating
Drain-water Heat Recovery
Water Heaters
Wind Energy
Wind Electric Systems
Wood and Pellet Stoves
Vehicles (ended 12/31/11)
Alternative Fuels

Who can get the tax credit?
Homeowners and renters (if you own the appliance or system) can apply. You must be an Oregon resident. The qualifying equipment must be used in the home you live in (your primary residence) or in your secondary (vacation) home located in Oregon. Vehicles must be registered for use in Oregon to qualify for a tax credit.

What qualifies?
The Oregon Department of Energy maintains lists of qualifying equipment, systems and services for the Residential Energy Tax Credit program. Only items eligible at the time of purchase qualify. You must the owner of the eligible equipment and the equipment must be new (original use must begin with you).

It is important to note that appliances and equipment labeled as energy efficient by the federal Energy Star^TM program are not always eligible for the state Residential Energy Tax Credit program. In most cases, the state program has higher standards than Energy Star^TM or incentive programs offered by the Energy Trust of Oregon or utility companies.

You must apply and be approved before taking the credit on your Oregon income taxes. Don't wait, send your application to us as soon as your appliance, heating or water heating system is installed. You can save time by applying online for appliances and water heaters. See the bottom of this page for more information about tax credit eligibility and the application process.

How much is the tax credit?
The tax credit amount for qualifying equipment or systems is based on the energy saved and the cost of the equipment. The maximum tax credit for each item is the amount listed on the Oregon Department of Energy qualifying list or 25 percent of the eligible net purchase cost, whichever is less.

What if I don't have a state tax liability?
To qualify for a tax credit, you must have an Oregon income tax liability. If you are an Oregon resident and do not have an Oregon income tax liability, you may choose to transfer your tax credit to an individual with an Oregon tax liability using the Pass-through Option.

You would transfer your tax credit to an individual with an Oregon tax liability who will make a lump-sum payment to you equal to 95 percent of the certified tax credit amount. To use this option, complete this application form first. Your application will be reviewed for eligibility. A Pass-through Option Application will be sent to you in return. You are responsible for finding the pass-through partner for this transfer. You and your pass-through partner (the tax credit recipient) will complete and sign the Pass-through Option Application and mail it to the Oregon Department of Energy. The Oregon Department of Energy will then issue the tax credit certification to the pass-through partner.

Important: There may be tax implications when using the Pass-through Option. We advise you to consult with your tax preparer.

How do I claim the tax credit on my income tax form?
When your application for a Residential Energy Tax Credit is approved, you will receive a tax credit certification. There is a line on your tax return form for energy tax credits. You write the tax credit amount printed on your certification on the tax return form. Do not attach the certification to your tax return. Keep your certification, a copy of your application, and proof of payment with your tax records. If your return is audited, the Oregon Department of Revenue will request copies of the information from you. You may carry forward any unused credit for up to five years.

Timing
To receive your tax credit certification by April 15, please submit your tax credit application to the Oregon Department of Energy by March 15 of the year following your purchase. You may still apply for a tax credit after March 15, but may have to amend your tax filings to claim your credit.

Questions
For questions on claiming your energy tax credit, please contact the Oregon Department of Revenue at 1-800-356-4222 or (503) 378-4988 or visit the Oregon Department of Revenue Web site at:
http://www.oregon.gov/DOR/PERTAX/personal-income-tax-information-2010/credits.shtml#thirtythree

Contact the Oregon Department of Energy with any questions (503) 378-4040 in Salem or 1-800-221-8035 toll-free in Oregon).

reprinted from Oregon.gov