Information on Oregon Residential Energy Tax Credits (RETC)
Oregon Program Changes Requirements in 2013
The state of Oregon, through a program called the Residential Energy Tax Credit (RETC) provides tax credits for new wood and pellet stoves that meet the definition of Premium Efficiency Biomass Combustion Devices. The old tax credit was a flat $300, then that was changed to an efficiency calculation valued at up to $300.
New rules in 2013 require the appliance meets the gph standards (4.5, wood, 2.5 pellet/catlytic) and a minimum efficiency target. Appliances purchased in 2012 fall under the previous rules.
Based on analysis from ODOE, only a handful of wood and pellet stoves will now pencil out to receive a tax credit. This is because the efficiency rating used by ODOE on the tax credit calculation form is higher than the efficiency rating reported on the EPA's list of certified stoves. Most of the "efficiency" numbers on the EPA's list are "default" numbers. Increasing numbers of newly tested stoves are reporting efficiency numbers based on the Canadian B415 standard.
ODOE contacted OHPBA in April to report that the new efficiency target meant few appliances would qualify in 2013. OHPBA met with ODOE to review a strategy to allow more appliances to qualify. OHPBA is investigating where the efficiency targets came from and whether the efficiency ratings provided by manufacturers can be used in the tax credit since they may be higher than the number reported on the EPA's list. So, stay tuned for more information as it becomes available.
Applying the Tax Credit
The appliance must be purchased in the year in which the tax credit is applied. You need to show an invoice in the tax credit application. For example, if a stove is purchased in December it would be for that year. The "operational date" can be between the purchase date and April 1. That would mean that you could buy it in December but get a permit approval in January and still claim the tax credit in the year you bought it. However, if the permit is not approved until after April 1, you could not claim the tax credit in the year you bought it. There is an "outside air" requirement. Click HERE for a letter from ODOE that addresses some of the problems that have been encountered with the application.
Oregon Biofuels Tax Credit
Did you know you can take a taxz crediot for burning cord wood? The Oregon tax credit applies to companies and people who collect and consume bio fuels such as bio diesel, bio home heating oil, and biomass, such as cord wood and pellets in the case of home heating.
•The credit is $10 per bone dry ton of pellets or $10 per cord of wood.
•The credit is for fuel burned (not bought) regardless of the source. In other words, if you burn cordwood that came from a tree that fell in your backyard, that qualifies. There will be more detail on type of wood that qualifies once the rules are out.
•The credit only applies if a pellet stove is used or a woodstove on the list of EPA certified wood stoves.
The entire list of rules for Bio Fuels tax credit can be found at: www.oregon.gov/ENERGY/RENEW/docs/330-150Draft.pdf