Energy Trust incentives
Anemometer Loan program – We fund an Anemometer Loan program to assess wind quality at proposed sites. Anemometers are measuring devices that provide valuable data on wind quality and speed to evaluate a site's suitability. The program is administered by Oregon State University's Energy Resource Research Laboratory. The anemometers are available free of charge to landowners whose sites meet initial screening characteristics.
Cash incentives for turbine installations – Incentive levels are based on a project’s costs in comparison to the market value of the energy produced (above-market costs). There is no cap or fixed percentage of the amount of above-market costs we will pay. Each project is unique and incentives are based on many factors. In most cases, we will disburse our funds over time, contingent on the project’s actual delivery of electric power to the grid. In return for our funding contribution, we will ask for a negotiated share of the project’s green tags, which are held in trust for the ratepayers who contribute to Energy Trust.
Tax credits
Consult your tax professional to learn how federal and state tax credits and rules apply to your project. Information does not constitute tax advice and cannot be used to avoid tax penalties.
Oregon Business Energy Tax Credit:
- Up to 50 percent of eligible system cost
- Commercial income tax credit administered by Oregon Department of Energy
- Claimed over five years at 10 percent of eligible cost per year
- Eligible project cost may be capped
- Non-taxable entities such as governments, non-profits, tribes and schools may consider using the Business Energy Tax Credit Pass-through Option. This option allows a project owner to transfer tax credit eligibility to a pass-through partner in return for a lump-sum cash payment upon completion of the project. Businesses without a tax liability may also choose to use the Pass-through Option. For more information, visit the Oregon Business Energy Tax Credit Web page or call the Oregon Department of Energy at 1.800.221.8035.
Federal Investment Tax Credit:
- 30 percent of eligible installed system cost
- Commercial federal income tax credit
- IRS Form 3468
Federal Accelerated Depreciation:
- Modified Accelerated Cost Recovery System
- Five-year federal depreciation schedule
- Rapid depreciation deductions on federal tax return
- IRS Form 4562
Oregon Accelerated Depreciation
You must be an Oregon customer of Portland General Electric or Pacific Power, or be willing to deliver power to one of these utilities. Systems must generate electricity and be connected to the local electric utility grid.
Follow these steps to pursue a commercial-scale wind turbine installation and get cash incentives and tax credits:
- If you are exploring a wind turbine installation of up to 20 MW in capacity, contact Erin Johnston at 503.459.4075. We also recommend downloading and reading Community Wind: An Oregon Guidebook before beginning any community-scale wind project.
- An important part of exploring any large wind turbine system is to assess the wind quality at the proposed site. Energy Trust funds an Anemometer Loan Program through the Oregon State University Energy Resource Research Laboratory.
- If your project is feasible, you can apply for an incentive from Energy Trust. Incentives are negotiated before construction begins and payment begins upon project completion. In most cases, Energy Trust makes payments over the first few years of a project’s operating life, contingent upon its electricity production.
To apply:
- Complete and send in an application (Form 901 PDF | Doc). This form helps Energy Trust understand where you are in the project development process. You may email the form to us, but we require a signed paper copy before we formally begin to process your proposal.
- If your project meets threshold conditions, appears promising and is reasonably mature, we may invite you to submit a Wind Technical Addendum (PDF) and a Financial Template (Excel). These three forms provide Energy Trust additional detailed technical and financial information on your proposed project and business plan. We will work to process your application in a timely manner. However, applicants should understand that the full review and approval process can take up to six months. See our application tips for more info.
Use the following project enrollment forms to apply for Energy Trust cash incentives. For more information, including incentive application assistance, email Erin Johnston or call 503.459.4075.