Energy Conversion Facilities Corporate Tax Exemption

March 01, 2010


As part of Ohio’s Tax Reform, personal property tax was phased-out by 2009 and corporate franchise tax was phased-out by 2010 for most taxpayers. Ohio may provide an exemption for certain property from real and personal property taxation*, state sales and use taxes, and the state's corporate franchise tax where applicable. The exemption applies to property used in energy conversion, thermal-efficiency improvements and the conversion of solid waste to energy. Generally, "energy conversion" refers to the replacement of fossil-fuel resources with alternative fuels or technologies; "thermal efficiency improvements" refers to the recovery of waste heat or steam produced in any commercial or industrial processes; and "solid waste conversion" refers to the use of waste to produce energy and the utilization of such energy. Eligible technologies may include solar-thermal systems, photovoltaic systems, wind, biomass, landfill gas and waste-recovery systems. Upon receipt of certification from the tax commissioner, such property is exempt from Ohio's sales and use tax. In addition, such property is not considered to be an improvement on the land for purposes of real property taxation or as 'used in business' for purposes of personal property taxation.* Such property is also not considered in the assessment of Ohio's corporate franchise tax. These provisions have been in effect since 1978. Contact the Department of Taxation for more information. The Application for Energy and Solid Waste Energy Conversion and Thermal Efficiency Improvement Facility is found at on the Ohio Department of Taxation website (form number ECF). *It should be noted that Ohio's personal property taxes for general business filers have been phased out. See the Department of Taxation fact sheet on this subject. It should be noted that public utilities are not considered "general business filers" and tangible personal property of public utilities is still taxed. Furthermore, for tax purposes, a business that produces electricity and sells excess electricity to others will be subject to personal property taxes as well. See the Department of Taxation's fact sheet for more information.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Ohio
Incentive Type: Corporate Tax Exemption
Web Site:
Administrator: Ohio Department of Taxation
Start Date:
Eligible Renewable/Other Technologies:
  • Solar Water Heat
  • Solar Space Heat
  • Solar Thermal Electric
  • Solar Thermal Process Heat
  • Solar Photovoltaics
  • Wind (All)
  • Biomass
  • Municipal Solid Waste
  • Combined Heat & Power
  • Landfill Gas
  • Wind (Small)
Incentive Amount: 100% Exemption
Maximum Incentive: None


Name: ORC 5709.20 et seq.
Name: ORC 5733.05
Name: OAC 5703-1-06


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

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.