| Summary:
New Jersey’s 1999 electricity restructuring legislation provides
for investments in energy efficiency and renewable energy through
the "Societal Benefits Charge" collected from all electric
public utility customers. In March 2001, the NJ Board of Public
Utilities approved funding for renewable energy programs, including
a customer-sited renewables rebate program administered by the state's
utilities.
Eligible technologies include fuel cells, photovoltaic, small wind,
or sustainable biomass technologies. There no maximum installation
size. However, if the installation size exceeds an applicant's needs,
the applicant is not eligible for incentives under this program
but can compete for financial incentives through the grid-supply
or market development programs. In addition, systems must include
at least a 5-year all-inclusive warranty.
Solar electric systems are eligible for incentives which are paid
incrementally based on the size of the system installed:
$5.50 per Watt for the first 10 kW of system size
$4.00 per Watt for the next 90 kW of system size
$3.75 per Watt for the next 400 kW of system size
$0.30 per Watt for system capacity in excess of 500 kW, up to 1
MW
Systems up to 10kW are eligible to receive up to 70% of installed
cost. Note that this is an increase from the $5/W rebate with a
60% maximum in effect through 2002. Systems greater than 10kW up
to 1 Megawatt are eligible for 60% funding of installed cost. Any
system greater than 1 Megawatt will only receive funding based on
the 1 Megawatt size.
Wind and sustainable biomass systems are currently eligible for
lower incentive levels beginning at $5/W (60% maximum) for systems
up to 10 kW. Incentive amounts will decrease over time as the total
number of installed systems increases.
See the New Jersey
Clean Energy Program Web site for all application materials,
complete funding schedule, and current incentive levels.
Through January 31, 2003, projects supported (or incentives reserved)
by the NJ Clean Energy Program were as follows:
PV (<10 kW): 71 projects (309 kW total)
PV (>10 kW) 20 projects (3,033 kW total)
Wind (<10 kW): 3 projects (20 kW total)
Wind (>10 kW): 2 project (2,875 kW)
Natural Gas Fuel Cell: 12 projects (2,850 kW total)
Sustainable Biomass: 7 projects (5,164 kW total)
Federal Credits/Accelerated Capital Depreciation
for Businesses Installing Solar Investment Tax Credit for Solar
Energy Property
The 10% investment Tax Credit for Businesses is permanently extended
as part of EPAct 1992. Any commercial entity which invests in or
purchases qualified solar energy property can take credit. Only
commercial entities are eligible. The main applicable paperwork
is IRS Form 3468. We also have Instructions for Form 3468. [Both
are in .pdf format. Since the IRS may alter the forms without notifying
us, these are posted for your edification only; please refer to
the official forms site (www.irs.gov) for current versions.] All
you have to know about your renewable energy equipment is its cost,
which is entered on line 2. For a sole proprietorship the tax credit
comes back into Form 1040 on line 50; for corporations it goes onto
Form 1120, Schedule J, line 6d; Form 1120-A, Part I, line 4a; Form
1041, Schedule G, line 2c; or the applicable line of your return.
The Federal definition of energy property
is:
1. Equipment that uses solar energy to generate electricity, to
heat or cool (or provide hot water for use in) a structure, or to
provide solar process heat or
2. Equipment used to produce, distribute, or use energy derived
from a geothermal deposit (within the meaning of (Schedule section
613(e)(2)). Use IRS Form 3468.
Available to: Any commercial entity in all 50 states is
eligible.
Eligible Technology: Photovoltaics, Solar Hot Water, and
Energy Storage equipment
Investment Tax Credit Frequently Asked
Questions:
Q. Are there limitations on the amount of credit I can take?
A. In any one year you may not take any tax credit that
exceeds the total tax owed. The allowable tax credit for any one
year is also limited to $25,000, plus 25% of the total tax remaining
after the credit is taken. For example, if you are allowed the full
10% credit for an investment of $500,000, which is $50,000, and
you owe $100,000 in taxes, you may take $25,000 plus 25% of the
remaining $75,000 ($18,750), which equals $43,750. Credit not allowable
in one year may be taken in other tax years (see below).
Q. Do I have to use the credit in the year the purchase
or investment is made?
A. No. If you cannot use part or all of the credit because
of tax liability limitations, you may carry any excess back to each
of the three preceding years, beginning with the earliest. If you
have an unused credit after carryback, it may be carried forward
to each of the 15 years after the year of the credit.
Q. Are there special tax forms needed to take the credit?
A. Yes. You will need form 3486 (Investment Credit), and
you may need form 3800 (General Business Credit) and their corresponding
instruction forms.
Additional Info: Contact your accountant or tax professional.
Accelerated Capital Depreciation for
Solar Energy Property
The US Government offers a 5 year Accelerated Capital Depreciation
for any commercial entity which invests in or purchases qualified
solar energy property. Only commercial entities are eligible. This
is part of the US Code Citation: 26 USC Section 168.
Available to: Any commercial entity in all 50 states is
eligible
Eligible Technology: Photovoltaics, Solar Hot Water, and
Energy Storage equipment
Additional Info: The United States Government Internal
Revenue Service, or contact your accountant or tax professional.
New Jersey Clean Energy Program Pre-Installation
Application Form
|
