Updated trade ally search function
Effective July 1, we have changed the way solar trade allies are listed on our Web site, making the list shorter and more effective for potential customers. Please explore the new search functionality on the trade ally list.

The criteria for being listed on the Web site are explained in section 10 of the Program Guide for Solar Electric Trade Allies and Program Guide for Solar Water Heating Trade Allies.

New solar water heating systems approved for use
Viessmann Vitosol residential OG-300 solar water heating and Sealed Air solar pool heating systems are now eligible for Energy Trust solar water heating incentives when installed according to our Solar Water Heating Installation Requirements. The Viessmann system models will be added to our eligible solar water heating system list. You may contact by e-mail or at 503.459.4073 with any questions about system eligibility.

Is Energy Trust’s incentive taxable? What effect might it have on federal energy tax credits?

The following information is intended to provide only general information. You should not treat this information as legal advice, and you should not act or fail to act based upon it. The U.S. tax code is complex, interpretations of it are often based on the merits of individual cases, and for this reason readers are strongly urged to obtain specific advice from a tax specialist before deciding how to proceed. Reliance on this information will not prevent the Internal Revenue Service (IRS) from imposing penalties if it takes a different view of the subject.

We often receive questions about the effect of Energy Trust’s incentive on the federal solar tax credit. For background, please take the time to read Solar Energy Industries Association’s newly released FAQs about federal tax incentives for solar energy systems. Our analysis below is based upon what we think is a reasonable reading of the current federal tax code, but we cannot assure you that it is correct, complete, wholly up‐to‐date or that the IRS will agree.

When Energy Trust asked the IRS in 2007 whether Energy Trust incentives for residential energy efficiency and renewable energy were taxable, the agency provided us with a private letter ruling indicating that these incentives may be excluded from the participant’s taxable income under section 136 of the Internal Revenue Code. (Our residential incentives were considered equivalent to a utility subsidy.) We did not ask the IRS about the implications of this opinion for participant tax credits, but our reading of the federal tax code is that generally, energy subsidies that are excluded from the participant’s taxable income reduce the basis for the participant’s federal energy tax credit.

On the other hand, we believe that Energy Trust’s incentives for commercial energy efficiency and renewable energy, including solar, are subject to federal income tax. Energy Trust issues an IRS Form 1099 for incentive amounts more than $600 paid directly to a participant. Our understanding is that to the extent the incentive is included in the participant’s taxable income, it does not reduce the basis for the federal renewable energy tax credit.

We also believe that when an Energy Trust incentive is paid to the contractor, the basis for the participant’s federal tax credit is the net cost paid by the participant to the contractor.

Finally, we do not believe Energy Trust incentives should be considered government financing ("subsidized energy financing" under section 48 of the Code) for purposes of calculating federal energy credits.

For more information, visit Energy Trust’s Renewable Energy—Solar program pages, or call 1.866.368.7878.

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