Clean Energy Tax Credit (Corporate)

July 29, 2014

Summary

NOTE: Due to a high level of interest, the Clean Energy Tax Credit annual funding of $5 million for years 2012, 2013 and 2014 has been fully allocated to compensate applicants wait listed from previous years. The Georgia Environmental Finance Authority is continuing to accept and process applications. If denied by the Georgia Department of Revenue, these applications will be added to a waiting list, prioritized by postmark, for possible credit allocation in a future year.
 
In May 2008, Georgia enacted legislation establishing personal and corporate tax credits for renewable energy equipment and certain energy-efficient equipment installed and placed into service. For renewable energy property used for any purpose other than single-family residential purposes, the tax credit is equal to 35% of the cost of the system (including installation), $0.60/square foot for lighting retrofit projects, and $1.80/square foot for energy-efficient products installed during construction. The credit is subject to various ceilings depending on the type of system or project. The maximum credit amount is the lesser of 35% of the system cost or the maximum dollar cap specified for the technology. The following credit limits for various technologies apply:
  • A maximum of $100,000 per installation for domestic solar water heating
  • A maximum of $500,000 per installation for photovoltaics (PV), solar thermal electric applications, active space heating, biomass equipment and wind energy systems
  • A maximum of $100,000 per installation for Energy Star-certified geothermal heat pumps
  • A maximum of $100,000 for lighting retrofit projects
  • A maximum of $100,000 for energy-efficient products installed during construction.
Leased systems are eligible for the credit. (In the case of a leased system, the cost is considered to be eight times the net annual rental rate, which is the annual rental rate paid by the taxpayer less any annual rental rate received by the taxpayer from sub-rentals.)
 
Before claiming the credit, the taxpayer must submit an application to the Georgia Department of Revenue for tentative approval, as the aggregate amount of tax credits -- both personal and corporate credits -- taken may not exceed $2,500,000 in any calendar year through December 31, 2011. The aggregate annual limit in 2012, 2013 and 2014 is $5 million. Tax credits are granted on a first-come, first-served basis and may not exceed the taxpayer's liability for that taxable year. Taxpayers who do not receive a full credit for an eligible system will be placed on a "priority list" for access to this credit in future years.
 
The credit must be taken for the taxable year in which the property is installed. For credits allowed through the end of 2011, any excess credit may be carried forward for five years from the close of the taxable year in which the clean energy property was installed. Credits allowed for 2012, 2013 or 2014 must be taken in four equal installments over four successive taxable years beginning with the taxable year in which the credit is allowed.
 
Solar hot water systems must be certified for performance by the Solar Rating Certification Corporation (SRCC), the Florida Solar Energy Center (FSEC) or a comparable entity approved by the tax authority. The equipment must meet the certification standards of SRCC OG-100 or FSEC-GO-80 for solar thermal collectors and/or SRCC OG-300 or FSEC-GP-5-80 for solar thermal residential systems.
 
This tax credit took effect July 1, 2008, and is scheduled to expire December 31, 2014.
 
 

 

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Georgia
Incentive Type: Corporate Tax Credit
Web Site: http://www.gefa.org/Index.aspx?page=423
Administrator: Georgia Department of Revenue
Start Date: 7/1/2008
Eligible Renewable/Other Technologies:
  • Solar - Passive
  • Solar Water Heat
  • Solar Space Heat
  • Solar Thermal Electric
  • Solar Thermal Process Heat
  • Solar Photovoltaics
  • Wind (All)
  • Biomass
  • Geothermal Heat Pumps
  • Daylighting
  • Lighting
  • Lighting Controls/Sensors
  • Comprehensive Measures/Whole Building
  • Wind (Small)
Incentive Amount: Renewables: 35%
Lighting retrofit projects: $0.60/square foot of building
Energy-efficient products: $1.80/square foot of building
Maximum Incentive: PV, solar thermal electric, active solar space heating, biomass, wind: $500,000
Solar hot water, Energy Star-certified geothermal heat pumps, lighting retrofit projects, energy-efficient products: $100,000;
Equipment Requirements: Solar thermal collectors must meet SRCC certification OG-100 or FSEC-GO-80. Solar thermal residential systems must meet SRCC OG-300 or FSEC-GP-5-80.
Carryover Provisions: For credits allowed through the end of 2011, excess credit may be carried forward for five years from the close of the taxable year in which the clean energy property was installed. Credits allowed for 2012, 2013 or 2014 must be taken in four equal installments over four successive taxable years beginning with the taxable year in which the credit is allowed.

Authorities

Name: O.C.G. § 48-7-29.14
Date Enacted: 5/14/2008 (subsequently amended)
Effective Date: 7/1/2008
Expiration Date: 12/31/2014
Name: H.B. 346
Date Enacted: 5/11/2011
Effective Date: 1/1/2011
Expiration Date: 12/31/2014
Name: Georgia Department of Revenue HB 670 Chart

Contact

Name: Taxpayer Services Division
Organization: Georgia Department of Revenue
Address: 1800 Century Center Blvd, NE
Atlanta GA 30345-3205
Phone: (877) 423-6711
Email: taxpayer.services@dor.ga.gov

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.