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Funding Resources
Funding Resources
| Modified Accelerated Cost-Recovery System | |
|---|---|
| Type of Incentive | Tax |
| Eligible States | National |
| Eligible Technology | Backpressure Turbine, Boiler, Combustion Turbine, Condensing Turbine, Extracting Turbine, Fuel Cell, Microturbine, Other, Reciprocating Engine, Heat Recovery Generator, Stirling Engine |
| Eligible Fuel | Biogas, Biomass, Hydrogen, LFG, Municipal Solid Waste, Other, Waste Heat Recovery |
| Eligible Project Size | All (MW) |
| Number of Awards |
|
| Size of Award | The federal Modified Accelerated Cost-Recovery System (MACRS), allows businesses to recover investments in certain property through depreciation deductions. For certain biomass property, the MACRS property class life is seven years. Eligible biomass property includes assets used in the conversion of biomass to heat or to a solid, liquid or gaseous fuel, and to equipment and structures used to receive, handle, collect and process biomass in a waterwall, combustion system, or refuse-derived fuel system to create hot water, gas, steam and electricity. The federal Economic Stimulus Act of 2008, enacted in February 2008, included a 50 percent bonus depreciation provision for eligible renewable-energy systems acquired and placed in service in 2008. To qualify for bonus depreciation, a project must have a recovery period of 20 years or less under normal federal tax depreciation rules; the original use of the property must commence with the taxpayer claiming the deduction; the property generally must be acquired during 2008; and the property must be placed in service during 2008 (or, in certain limited cases, in 2009). The owner is entitled to deduct 50 percent of the adjusted basis of the property in 2008. The remaining 50% of the adjusted basis of the property is depreciated over the ordinary depreciation schedule. The bonus depreciation rules do not override the depreciation limit applicable to projects qualifying for the federal business energy tax credit. Before calculating depreciation for such a project, including any bonus depreciation, the adjusted basis of the project must be reduced by one-half of the amount of the energy credit for which the project qualifies. |
| Start Date | 12/31/2007 |
| End Date | 12/31/2008 |
| Minimum Efficiency(%) |
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| Additional Information |
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| Web Site | http://www.dsireusa.org/library/includes/ incentivesearch.cfm?Incentive_Code=US06F&Search=Technology&techno=combined_heat_power¤tpageid=2&EE=1&RE=1  |
| Additional Web Site | http://www.irs.gov/ |
| Primary Contact | Information Specialist - IRS 1111 Constitution Avenue, N.W. Washington, DC 20224 U.S.A. (800) 829-1040 |