Clean Energy Production Tax Credit

The Clean Energy Incentive Tax Credit offers a state income tax credit for electricity generated by qualified resources of 0.85 cents per kilowatt-hour, and 0.50 cents per kilowatt-hour for electricity generated from co-firing a qualified resource with coal. These credits can be claimed over a period of five years and must be at least $5000 (cumulatively) to qualify. The maximum incentive a project can receive is $2.5 million in tax credits over a five-year period, and there is an annual maximum of $25 million in tax credits that can be claimed state-wide. If the credit in any taxable year exceeds a taxpayer's state income tax in that year, the taxpayer may claim a refund for the excess amount.

This credit is available to individuals and corporations that build and generate electricity from qualified resources operational on or after January 1, 2006, but before January 1, 2016. The electricity generated must be sold to an unrelated person during the taxable year.