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Funding Resources
Funding Resources
| CHP Investment Tax Credit/Grant | |
|---|---|
| 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 | # 2 Fuel Oil, # 6 Fuel Oil, Biogas, Biomass, Coal, Hydrogen, Natural Gas, Other, Waste heat Recovery |
| Eligible Project Size | Maximum of 50 |
| Critical Information |
The CHP ITC is a 10 percent tax credit for the first 15 megawatts (MW) of a system up to 50 MW. The CHP ITC extends from the date of enactment through December 31, 2016. The American Recovery and Reinvestment Act of 2009 (H.R. 1) allows taxpayers eligible for the CHP ITC to receive a grant from the U.S. Treasury Department instead of taking the business ITC for new installations. The U.S. Department of Treasury are is now accepting applications for grants at: http://www.treasury.gov/initiatives/recovery/Pages/1603.aspx. Grants are available to eligible property placed in service in 2009, 2010 or 2011, or placed in service by the specified credit termination date (January 1, 2017 for CHP) if construction began in 2009, 2010, or 2011. The guidelines include a "safe harbor" provision that sets the beginning of construction at the point where the the applicant has incurred or paid at least 5 percent of the total cost of the property, excluding land and certain preliminary planning activities. |
| Start Date | 10/3/2008 |
| End Date | 1/1/2017 |
| Minimum Efficiency (%) | 60% |
| Additional Information |
Eligible CHP property generally includes systems up to 50 MW in capacity that exceed 60 percent energy efficiency, subject to certain limitations and reductions for large systems. The efficiency requirement does not apply to CHP systems that use biomass for at least 90 percent of the system's energy source, but the credit may be reduced for less-efficient systems. The CHP ITC is claimed through IRS Form 3468. |
| Web Site |
http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=US02F&re=1&ee=1 |
| Additional Web Site |
http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=US53F&re=1&ee=1 |
| Primary Contact |
Information Specialist - IRS 1111 Constitution Ave., NW Washington, DC 20224 U.S.A. (800) 829-1040 |