Energy Conversion and Thermal Efficiency Sales Tax Exemption

December 05, 2023


Ohio may provide a sales and use tax exemption for certain tangible personal property used in energy conversion, solid waste energy conversion, or thermal efficiency improvement facilities designed, constructed, or installed after December 31, 1974. 

Qualifying energy conversion facilities are those that are used for the primary purpose of converting natural gas or fuel oil to an alternate fuel or power source excluding propane, butane, naphtha, fuel oil, or natural gas. Solid waste conversion facilities include those that convert solid or semi-solid waste from industrial operations including public utilities, commercial distribution, research, agricultural, and community operations, and including garbage, street dirt, and debris. Thermal efficiency improvement is defined as "the recovery and use of waste heat or waste steam produced incidental to electric power generation, industrial process heat generation, lighting refrigeration, or space heating." Exempt facilities include both property owned and leased by the holder of the exempt facility certificate or certificate recipient.

Facilities must apply for an Exempt Facilities Certificate from the Department of Taxation, which must also be approved by the Development Services Agency. Upon receipt of certification from the tax commissioner, such property is exempt from Ohio's sales and use tax. The application for Energy and Solid Waste Energy Conversion and Thermal Efficiency Improvement Facility is found at on the Ohio Department of Taxation web site (form number ECF). 

Contact the Department of Taxation for more information.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Ohio
Incentive Type: Sales Tax Incentive
Web Site:
Administrator: Ohio Department of Taxation
Start Date:
Eligible Renewable/Other Technologies:
  • Geothermal Electric
  • Solar Thermal Process Heat
  • Wind (All)
  • Biomass
  • Hydroelectric
  • Municipal Solid Waste
  • Combined Heat & Power
  • Fuel Cells using Non-Renewable Fuels
  • Landfill Gas
  • Heat recovery
  • Anaerobic Digestion
  • Fuel Cells using Renewable Fuels
  • Microturbines
Incentive Amount: 100% exemption
Maximum Incentive: None


Name: ORC 5709.20 et seq.
Name: ORC 5709.25
Name: OAC 5703-1-06
Name: O.R.C. 5733.05


Name: Business Taxpayer Assistance
Address: 30 E. Broad Street, 22nd Floor
Columbus OH 43215
Phone: (888) 405-4039
Name: Business Response Line
Phone: (800) 848-1300

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.