ABSTRACT
This chapter focuses on federal tax incentive programs, but there are numerous programs in each state of US The Database of State Incentives for Renewables & Efficiency provides a useful resource for finding up-to-date information on both federal and state incentives. The production tax credit (PTC) encourages renewable energy production by providing a tax credit for each kilowatt-hour of wind, biomass, geothermal or hydro-based electricity produced by and sold to an unrelated party during the year. The investment tax credit (ITC) encourages the construction and/or acquisition of property used to produce and distribute clean tech energy. The Recovery Act provides investment tax credits for certain coal gasification and advanced combustion facilities. A taxpayer may not take both an investment tax credit ITC and a production tax credit PTC for a facility that could qualify for both. Biofuel excise and income tax credits are available for taxpayers who use biofuel in their trade or business or who sell biofuels at retail.
