Other Tax Incentives Available for Renewable Energy

Other preferences available for renewable energy generation include:

• Sales and use tax exemptions for machinery and equipment used to generate up to ten kilowatts of electricity using solar energy.  The exemption also includes labor and services for installing the equipment.  This preference was enacted in 2009 and expanded in 2013 to include small solar heat systems.  It is scheduled to expire in 2018.
• A remittance, or refund, of 75 percent of the sales tax paid for purchases of machinery and equipment used to generate electricity using fuel cells, wind, sun (except those eligible for the full exemption discussed above), biomass energy, tidal or wave energy, geothermal resources, anaerobic digestion, technology that converts energy from exhaust, or landfill gas as the principal source of power.  The remittance also includes labor and services for installing the machinery.  It applies to systems with at least one kilowatt of capacity.  The preference is scheduled to expire in 2020.  JLARC staff reviewed the preference in 2011.

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