New home energy tax credit rules start Jan. 1
By Christina Williams
Sustainable Business Oregon
Home solar systems will still be eligible for the Oregon Residential Tax Credit as of Jan. 1, but electric vehicles will not.
Oregon's Residential Energy Tax Credit structure will change starting Jan. 1 after an overhaul by the Oregon State Legislature.
As of the first of the year, alternative fuel vehicles — including those powered by electricity, natural gas and propane — will no longer be covered by the state tax credit program. High-efficiency appliances, such as those certified by Energy Star, will also no longer qualify for tax credits.
Under the residential program, Oregon offered a credit of up to $180 to encourage the purchase of efficient appliances such as dishwashers and clothes driers. The state offered up to $1,500 in credits to encourage the purchase of electric vehicles.
Oregon also offered an incentive for hybrids, such as the Toyota Prius, but that provision expired at the end of 2009.
A federal tax credit of up to $7,500 is still available to EV purchasers, though Autoblog Green points out that some of the smaller federal incentives are also expiring at the end of the year.
Jeff Allen, who took over as the electric vehicle industry group Drive Oregon's executive director this month, said he's not aware of any effort to revive the state tax incentive for electric cars.
"We'll be looking at our legislative agenda for 2013 in the next couple of months and looking at policy options for the EV industry," Allen said. "My initial sense is there may be better incentives to grow the industry."
The changes to the RETC structure were made as part of HB 3672 passed by the 2011 Oregon Legislature. That bill also included sweeping changes to the state's Business Energy Tax Credit that were widely unpopular in the renewable energy industry.
Other home energy efficiency measures still eligible for the Residential Tax Credit include:
- Solar and wind.
- Ground source heat pumps.
- Highly efficient furnaces and heat pumps.
- Premium-efficiency wood stoves.
- Tankless gas water heaters.
@SustainableBzOR | christinawilliams@bizjournals.com | 503.219.3438
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