Renewable Energy Investment Tax Credit (ITC)

Renewable Energy Investment Tax Credit (ITC)

Department of the Treasury

Internal Revenue Service

Incentive: The Investment Tax Credit (ITC) reduces federal income taxes for qualified tax-paying owners based on capital investment in renewable energy projects (measured in dollars). The ITC generally allows taxpayers to take a single tax credit against the project's tax basis equal to 30% in its first year and allows a taxpayer to elect certain qualified facilities to be characterized as energy property eligible for a 10% or 30% ITC, depending on the technology.

Incentives depend on the type of energy. Fuel cells can receive a $1500 credit per 0.5 kW.

Eligibility: Wind, closed-loop biomass, open-loop biomass, geothermal, solar, small irrigation power, municipal solid waste, qualified hydropower production, marine & hydrokinetic renewable energy.

When: System must be placed in service between December 31, 2005 and December 31, 2012. Certain geothermal and open- or closed- loop biomass systems qualify through December 31, 2013.


Contact: U.S. Internal Revenue Service

                (800) 829-1040