Oregon Revised Statutes Chapter 316 § 316.116 — Credit

Credit for alternative energy device; rules. (1)(a) A resident individual shall be allowed a credit against the taxes otherwise due under this chapter for costs paid or incurred for construction or installation of each of one or more alternative energy devices in or at a dwelling. (b) A credit against the taxes otherwise due under this chapter is not allowed for an alternative energy device that does not meet or exceed all applicable federal, state and local requirements for energy efficiency, including equipment codes, state and federal appliance standards, the state building code, specialty codes and any other standards. (2)(a) For each category one alternative energy device other than an alternative fuel device or an alternative energy device that uses solar radiation for domestic water heating or swimming pool heating, the credit allowed under this section may not exceed the lesser of 50 percent of the cost of the alternative energy device or $1,500, and shall be computed as follows: (A) For a category one alternative energy device that is not an alternative fuel device, the credit shall be based upon the first year energy yield of the alternative energy device that qualifies under ORS 469B.100 to 469B.118. The amount of the credit shall be the same whether for collective or noncollective investment. (B) For each category one alternative energy device for a dwelling, the credit shall be based upon the first year energy yield in kilowatt hours per year multiplied by 60 cents per dwelling utilizing the alternative energy device used for space heating, cooling, electrical energy or domestic water heating. (C) Except as provided in paragraph (c) of this subsection, for each category one alternative energy device used for swimming pool, spa or hot tub heating, the credit shall be based upon the first year energy yield in kilowatt hours per year multiplied by 15 cents. (b) For each alternative fuel device, the credit allowed under this section may not exceed the lesser of 50 percent of the cost of the alternative fuel device or $750. (c) For each category one alternative energy device that uses solar radiation for: (A) Domestic water heating, the credit allowed under this section shall be based upon 50 percent of the cost of the device or the first year energy yield in kilowatt hours per year multiplied by $2, whichever is lower, up to $6,000. (B) Swimming pool heating, the credit allowed under this section shall be based upon 50 percent of the cost of the device or the first year energy yield in kilowatt hours per year multiplied by 20 cents, whichever is lower, up to $2,500. (d)(A) For each category two alternative energy device that is a solar electric system or fuel cell system, the credit allowed under this section may not exceed the lesser of $3 per watt of installed output or $6,000. (B) For each category two alternative energy device that is a wind electric system, the credit allowed under this section may not exceed the lesser of $6,000 or the first year energy yield in kilowatt hours per year multiplied by $2. (3)(a) Notwithstanding subsection (2)(a), (c) or (d) of this section, the total amount of the credits allowed in any one tax year may not exceed the tax liability of the taxpayer or $1,500 for each alternative energy device, whichever is less. Unused credit amounts may be carried forward as provided in subsection (8) of this section, but may not be carried forward to a tax year that is more than five tax years following the first tax year for which any credit was allowed with respect to the category two alternative energy device that is the basis for the credit. (b) Notwithstanding subsection (2)(d) of this section, the total amount of the credit for each device allowed under subsection (2)(d) of this section may not exceed 50 percent of the total installed cost of the category two alternative energy device. (4) The State Department of Energy may by rule provide for a lesser amount of incentive for each type of alternative energy device as market conditions warrant. (5) To qualify for a credit under this section, all of the following are required: (a) The alternative energy device must be purchased, constructed, installed and operated in accordance with ORS 469B.100 to 469B.118 and a certificate issued thereunder. (b) The taxpayer who is allowed the credit must be the owner or contract purchaser of the dwelling or dwellings served by the alternative energy device or the tenant of the owner or of the contract purchaser and must: (A) Use the dwelling or dwellings served by the alternative energy device as a principal or secondary residence; or (B) Rent or lease, under a residential rental agreement, the dwelling or dwellings to a tenant who uses the dwelling or dwellings as a principal or secondary residence. (c) The credit must be claimed for the tax year in which the alternative energy device was purchased if the device is op