Renewable Energy Technology Assessments - Kauai Island Utility ...

More documents

Recommendations

Info

Kaua’i Island Utility Cooperative Renewable Energy Technology Assessments 6.0 Renewable Energy Financial Incentives 6.0 Renewable Energy Financial Incentives A number of financial incentives are available for the installation of renewable energy and conversion technologies. These incentives can be of great significance because they often make the difference between a non-viable and a viable project, and can substantially influence profitability. Careful thought should be put into determining which incentives apply to each new project, and how to best take advantage of such incentives. The following discussion provides a list of existing and proposed programs that are available to new energy facilities. It should be noted that the intent of this section is to provide general information on available incentives. Black & Veatch cannot provide tax advice concerning the implications of the specific incentive programs. Furthermore, although many of these incentives are designed as tax credits, it may still be possible for non-taxable entities, such as KIUC, to claim them by establishing facility ownership through a third-party taxable entity or other project structures. This section describes the federal incentives available to renewable energy projects and other non-government programs designed to capture the value of renewable energy. 6.1 Federal Financial Incentives The federal government began providing significant incentives for alternative energy during the oil embargo in the 1970s. The government has spent over $14 billion on research and development activities, in addition to tax and financial incentives for project development and energy production. The federal incentives reviewed for this project include the following • Section 45 Tax Credit (Production Tax Credit) • Reduced Depreciation Life • Renewable Energy Production Incentive (REPI) • Investment Tax Credit • Farm Security and Rural Investment Act of 2002 Incentives • Rural Economic Development Loan and Grant Program • RUS Electric Loan Program • High Energy Cost Grant Program • Tribal Energy Program • Miscellaneous Loan Guarantee and Grant Programs • Federal Green Power Purchasing Goal 21 March 2005 6-1 Black & Veatch
Kaua’i Island Utility Cooperative Renewable Energy Technology Assessments 6.0 Renewable Energy Financial Incentives 6.1.1 Production Tax Credit (Section 45) The Section 45 tax credit (Production Tax Credit or PTC) is available to private entities subject to taxation for the production of electricity from various renewable energy technologies. The PTC formerly applied only to the production of electricity from wind, “closed-loop” biomass, and poultry waste, and had expired at the end of 2003. In October 2004, with the passing of the American Jobs Creation Act, the PTC was extended through December 31, 2005 and was expanded to include the following resources: • “Open-loop” biomass • Geothermal energy • Solar energy • Small irrigation hydropower • Biomass cofiring 46, 47 • Municipal solid waste (trash combustion and landfill gas) Table 6-1 shows the provisions of the production tax credit, as revised by the American Jobs Creation Act. Table 6-1. Production Tax Credit Provisions. Resource Eligible In-service Dates Credit Size * Term (years) Transferable Credit? Capacity Req. Wind Biomass 12/31/93 - 1/1/2006 Full 10 No None Closed-Loop 12/31/92 - 1/1/2006 Full 10 No None Closed-Loop Co-Firing Before 1/1/2006 Full (% biomass heat input) 10 Yes ** None Open-Loop Before 1/1/2006 Half 5 Yes ** None Livestock Waste 10/22/04 - 1/1/2006 Half 5 Yes ** >150 kW Poultry Waste 12/31/99 - 1/1/2006 Full 10 No None Geothermal 10/22/04 - 1/1/2006 Full (can’t also take ITC) 5 No None Solar 10/22/04 - 1/1/2006 Full (can’t also take ITC) 5 No None Small Irrigation 10/22/04 - 1/1/2006 Half 5 No 150 kW – 5 MW Landfill Gas 10/22/04 - 1/1/2006 Half (can’t also take Sec. 29) 5 No None 46 Database of State Incentives for Renewable Energy, “Renewable Electricity Production Tax Credit,” available at www.dsireusa.org. 47 House Ways and Means Committee, “American Jobs Creation Act of 2004,” available at http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=108_cong_bills&docid=f:h4520enr.txt.pdf. 21 March 2005 6-2 Black & Veatch
Page 1 and 2:
11401 Lamar Black & Veatch Corporat
Page 3 and 4:
Page 3 Kaua’i Island Utility Coop
Page 5 and 6:
Principal Investigators: Ryan Pletk
Page 7 and 8:
Kaua’i Island Utility Cooperative
Page 9 and 10:
Page 11 and 12:
Page 13 and 14:
Page 15 and 16:
Page 17 and 18:
Page 19 and 20:
Page 21 and 22:
Page 23 and 24:
Page 25 and 26:
Page 27 and 28:
Page 29 and 30:
Page 31 and 32:
Page 33 and 34:
Page 35 and 36:
Page 37 and 38:
Page 39 and 40:
Page 41 and 42:
Page 43 and 44:
Page 45 and 46:
Page 47 and 48:
Page 49 and 50:
Page 51 and 52:
Page 53 and 54:
Page 55 and 56:
Page 57 and 58:
Page 59 and 60:
Page 61 and 62:
Page 63 and 64:
Page 65 and 66:
Page 67 and 68:
Page 69 and 70:
Page 71 and 72:
Page 73 and 74:
Page 75 and 76:
Page 77 and 78:
Page 79 and 80:
Page 81 and 82:
Page 83 and 84:
Page 85 and 86:
Page 87 and 88:
Page 89 and 90:
Page 91 and 92:
Page 93 and 94:
Page 95 and 96:
Page 97 and 98:
Page 99 and 100:
Page 101 and 102:
Page 103 and 104:
Page 105 and 106:
Page 107 and 108:
Page 109 and 110:
Page 111 and 112:
Page 113 and 114:
Page 115 and 116:
Page 117 and 118: Kaua’i Island Utility Cooperative
Page 167: Kaua’i Island Utility Cooperative
Page 219 and 220:
Page 221 and 222:
Page 223 and 224:
Page 225 and 226:
Page 227 and 228:
Page 229 and 230:
Page 231 and 232:
Page 233 and 234:
Page 235 and 236:
Page 237 and 238:
Page 239 and 240:
Page 241 and 242:
Page 243 and 244:
Page 245 and 246:
Page 247 and 248:
Page 249 and 250:
Page 251 and 252:
Page 253 and 254:
Page 255 and 256:
Page 257 and 258:
Page 259 and 260:
Page 261 and 262:
Page 263 and 264:
Page 265 and 266:
Page 267 and 268:
Page 269 and 270:
Page 271 and 272:
Page 273 and 274:
Page 275 and 276:
Page 277 and 278:
Page 279 and 280:
Page 281 and 282:
Page 283 and 284:
Page 285 and 286:
Page 287 and 288:
Page 289 and 290:
Page 291 and 292:
Page 293 and 294:
Page 295 and 296:
Page 297 and 298:
show all

Renewable Energy Technology Assessments - Kauai Island Utility ...

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?