This legislation is awaiting the Governor’s signature, but below are highlights of the bill as passed by the legislature.
HB 3672 amends, sunsets and creates a number of tax credit programs within the Oregon Department of Energy. The bill is effective on the 91st day following adjournment of the legislative session and most changes take effect at that time, although some are retroactive.
Changes to the Residential Energy Tax Credit (RETC) and the Biomass Producer and Collector Tax Credit (BPC) are effective beginning January 1, 2012.
Business Energy Tax Credit (BETC)—Sunsets: Section 1
HB 3672 sunsets the BETC program, which has been in effect since 1979. Under the new legislation:
• Applications for preliminary BETC certification received prior to April 15, 2011 will be processed by the department, and must receive preliminary certification prior to July 1, 2011.
• Renewable projects with a preliminary certification that began construction prior to April 15, 2011 must receive final certification based on the conditions of their preliminary certification.
• Conservation and transportation projects with a preliminary certification that began construction prior to April 15, 2011 must receive final certification based on the conditions of their preliminary certification and before July 1, 2014.
• Projects with preliminary certification that began construction after April 15, 2011 must receive final certification based on the conditions of their preliminary certification and before January 1, 2013.
Residential Energy Tax Credit (RETC)—Amended: Sections 67-77
The RETC program is extended by HB 3672 to January 1, 2018, except for the alternative fuel vehicle credit (including electric vehicles) which retains its existing sunset of January 1, 2012. Amendments to the program are effective beginning January 1, 2012.
HB 3672 eliminates some appliances such as dishwashers, clothes washers, refrigerators, plus air conditioners and boilers.
Additional program changes require ODOE to adjust incentive amounts to reflect market conditions for system performance and credit amounts.
A cap of $10 million per tax year is implemented for third party alternative energy device installations, these applicants are required to obtain certification prior to each installation, and may obtain bulk certification.
A third-party alternative energy device installation means an alternative energy device that is installed in connection with residential property and owned by a person other than the residential property owner in accordance with an agreement in effect for at least 10 years between the residential property owner and the alternative energy device owner. The agreement must cover maintenance and either the use of or the power generated by the alternative energy device.