Governor signs BETC reform bill
Gov. Ted Kulongoski on Thursday signed House Bill 3680, which reforms the Business Energy Tax Credit (BETC) program.
The legislation caps the overall amount in tax credits allowable for the renewable energy and manufacturing portions of the program and phases out the credit for large wind projects.
The statewide cap would be $300 million for the 2009-11 biennium, and $150 million for the year beginning July 1, 2011 and ending June 30, 2012. The bill also authorizes the Department of Energy to write rules if applications exceed those caps.
In addition to the overall cap, the bill also imposes the following cutbacks for large wind facilities (more than 10 megawatts). The limits apply to individual projects.
• For facilities that obtain preliminary certification between Jan. 1, 2010 and Jan. 1, 2011, the BETC would be limited to $3.5 million.
• For facilities that obtain preliminary certification between Jan. 1, 2011 and Jan. 1, 2012, the BETC would be limited to $2.5 million.
• For facilities that obtain preliminary certification after Jan. 1, 2012, the BETC would be limited to $1.5 million.
The BETC has been a hot topic in the renewable energy industry which has depended on the tax credit to help finance new projects. The reform largely leaves the program in tact but raises some questions about its long-term fate.
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