Information on Oregon Residential Energy Tax Credits (RETC)
Retailers and Consumers Take Note: Oregon Program Changes Requirements in 2013
Breaking News - The Oregon Department of Energy will hold a public hearing on Dec. 5 to review draft rules for the Residential Energy Tax Credit. The rulemaking hearing will begin at 10 a.m. at the department’s main office in Salem (625 Marion St.). The proposed rules for the Residential Energy Tax Credit program improve program administration, provide adjustments to the solar electric incentive rate and rework the incentive calculation for wood and pellet stoves.
More information about this rulemaking – including the draft proposed rules – is located at: http://www.oregon.gov/energy/CONS/Pages/Rulemaking-RETC.aspx
ODOE will accept oral testimony on the rules at the public hearing. Participants unable to attend may call in at 1-888-273-3658 and use access code 3125235. Written comments on the rulemaking are due by 5 p.m. on Friday, Dec. 6, 2013, and sent via e-mail to: email@example.com.
ODOE plans to file permanent rules in late December.
Background: OHPBA, HPBA and industry experts have been instrumental in negotiating with DOE on rules that affect wood and pellet stoves. It it expected that rules will increase the number of wood and pellet stoves that are eligible for the tax credit, which starting in 2013 has been a major issue. Also, more realistic efficiency levels have been discussed that should result in higher tax credits. Tax credit applications submitted in 2013 that have been held up should be allowed to be processed after the rules take effect. For more information about the program contact Maureen Bock, Energy Incentives Program Manager, 503-934-4004, firstname.lastname@example.org.
The Oregon Department of Energy manages the Residential Energy Tax Credit (RETC) program. In 2013 ODOE has started requiring that new wood and pellet stoves must both meet minimum efficiency requirements AND grams per hour requirements to be eligible for the tax credit. Appliances must both meet the gph standards (4.5, wood, 2.5 pellet/catlytic) and minimum efficiency targets of 69% efficiency for non-catalytic wood stoves; 77% efficiency for cataytic wood stoves; and 84% efficiency for pellet stoves. These rules are in effect for 2013, but the proposed rules (se will be modified because only a handful of wood and pellet stoves now pencil out to receive a tax credit.
The proposed levels are 4.0 gph for wood stoves for 2013 (3.5 gph in 2014) , and efficiency levels of 62% wood; 69% catalytic; and 74% pellet. These levels, assuming the rules pass, will be retroactive to all tax credit applications received as of January 1, 2013.
If you have any questions about the tax credit, call the Oregon Department of Energy at 503-378-4040
ODOE Wood/Pellet Stove Tax Credit Info. Click HERE
List of qualifying stoves. Click HERE Note: Currently (Dec 4 2013) the list is very short. The rules being drafted should dramatically increase the number of stoves that qualify for the tax credit.
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