Business Energy Tax Credit deadline looms

The Oregon Department of Energy said Thursday that the deadline to submit Business Energy Tax Credit applications for renewable energy projects that cost between $500,000 and $6 million is June 30.

The Oregon Legislature put a $300 million cap on the controversial BETC program during a special session in February and created a new, tiered system for applications to better manage the program. The $300 million cap covers the current biennium that began July 1, 2009 and ends June 30, 2011.

About $60 million in tax credits remain available under the cap. The department announced in May that $218 million in BETC credits have already been pre-certified.

The deadline at 5 p.m. June 30 is for so-called Tier 2 projects, which will compete with each other for the $20 million in tax credits that remain available for programs of that size in the BETC program. The applications will be reviewed in July with award announcements expected in August.

The three tiers for the tax credits, which cover up to 50 percent of projected project costs and are vital to the financial viability of some renewable energy developments, are:

• Tier 1: $10 million in tax credits available for applications where the projected costs are less than $500,000.
• Tier 2: $20 million in tax credits available for applications of $500,000-$5,999,999 in projected costs.
• Tier 3: $30 million in tax credits available for applications of $6 million or more in projected costs.

The energy department has received Tier 1 applications worth $3 million of the $10 million available for renewable energy tax credits. There is no deadline for this group of application until the $10 million mark is hit.

Tier 3 bids must be received by the Oregon Department of Energy by 5 p.m. on July 30, 2010. Those project applications will be subject to a competitive process and independent third-party review.