Rebates

Note: The One Big Beautiful Bill (OBBB) repealed the ability for "energy property" to qualify for the 5-year Modified Accelerated Cost-Recovery System (MACRS). Instead, the OBBB permanently restored 100% bonus depreciation in year one. The summary below discusses MACRS as it existed for energy property prior to the enactment of the OBBB. 

Prior to the OBBB, The Tax Cuts and Jobs Act of 2017 increased bonus depreciation to 100% for qualified property acquired and placed in service after September 27, 2017 and before January 1, 2023. Bonus depreciation steps down by 20% each year beginning with 80% in

According to Section 136 of the U.S. Code, energy conservation subsidies provided (directly or indirectly) to customers by public utilities* are non-taxable. This exclusion does not apply to electricity-generating systems registered as "qualifying facilities" under the Public Utility Regulatory Policies Act of 1978 (PURPA). If a taxpayer claims federal tax credits or deductions for the energy conservation property, the investment basis for the purpose of claiming the deduction or tax credit must be reduced by the value of the energy conservation subsidy (i.e., a taxpayer may not claim a tax credit for an expense that the taxpayer ultimately did not

Note: The One Big Beautiful Bill (OBBB) made significant changes to this tax credit. To qualify for the tax credit, solar and wind energy systems must be either placed in service by December 31, 2027, or construction must commence by July 4, 2026. Additionally, the tax credit is not available for systems that commenced construction after December 31, 2025 if the facility or property includes any material assistance from a prohibited foreign entity.

The tax credit for non-solar and wind technologies (combined heat and power, energy storage, hydropower, and geothermal) will experience the following step-down in value:

• Construction commences

Xcel Energy's Renewable Development Fund (RDF) was created in 1999 pursuant to the 1994 Radioactive Waste Management Facility Authorization Law (Minn. Stat. § 116C.779). Originally, Xcel Energy was required to donate to the fund $500,000 annually for each dry cask containing spent nuclear fuel being stored at the Prairie Island nuclear power plant, amounting to about $9 million annually. Subsequent legislation, enacted in May 2003, extended nuclear-waste storage at Xcel Energy's Prairie Island plant and increased the amount Xcel must pay toward the development of renewable-energy resources to $16 million annually for as long as the utility's Prairie Island nuclear

The Green Energy Program consists of three separate programs: one for Delmarva Power & Light (DPL), the state's only investor-owned utility; one for the state's municipal utilities; and one for the Delaware Electric Cooperative (DEC).  This summary provides incentives available customers of Delmarva Power and Light (DPL). The grants are administered by the DE Energy Office. 

The investor-owned utility (DPL) program was established as part of The Electric Utility Restructuring Act of 1999, and is supported under Delaware's public benefits program, the Delmarva Power Green Energy Fund. Under the program, incentives are available for the installation of qualifying photovoltaic

In May 2001, Washington enacted legislation (EHB 2247) that requires all electric utilities serving more than 25,000 customers to offer customers the option of purchasing renewable energy. Eligible renewables include wind, solar, geothermal, landfill gas, wave or tidal action, wastewater treatment gas, certain biomass resources, and "qualified hydropower" that is fish-friendly.

Beginning January 1, 2002, each electric utility must inform its customers on a quarterly basis of the voluntary option to purchase green power. The details of each utility's program must be approved by the state, and annual reports must be submitted from October 1, 2002, to October 1, 2012

FirstEnergy (formerly GPU) established the Metropolitan Edison Company Sustainable Energy Fund and the Penelec Sustainable Energy Fund in 2000. The Community Foundation for the Alleghenies in Johnstown, Pennsylvania administers the Penelec loan and grant components of the Fund, which has assets of approximately $9.1 million. The majority of funding available from the fund takes the form of investments made in businesses pursuing one or more of the fund's objectives. These funds typically will be distributed as loans or equity investments. The program is open to any individual, organization, governmental entity, or corporation. Penelec Sustainable Energy Fund and Metropolitan Edison Sustainable

In July 2010, the Montana Public Service Commission (PSC) adopted interconnection rules, effective August 13, 2010. These rules apply to all electric utilities under the PSC's jurisdiction, including investor-owned utilities and co-ops. Small generators, or systems for the production and or storage of electricity with a nameplate capacity up to 10 megawatts (MW), located on the land of utility customers within good standing are allowed to interconnect. While there is no statewide standard interconnection agreement, the largest investor-owned utility in Montana, NorthWestern, does have a standard interconnection agreement for net-metered systems. The use of certain equipment may qualify a facility

Hawaii's Renewable Portfolio Standard (RPS) requires each electric utility company that sells electricity for consumption in Hawaii to have the following percentages of electricity sales come from renewable energy by the corresponding date. H.B. 2089 of 2022 amended the RPS to be based on net electricity generation rather than retail sales beginning in compliance year 2030. 

• 10% of its net electricity sales by December 31, 2010;
• 15% of its net electricity sales by December 31, 2015;
• 30% of its net electricity sales by December 31, 2020;
• 40% of its net electricity generation by December 31, 2030;
• 70% of its net

The Alternative Energy Revolving Loan Program (AERLP) provides loans to individuals, small businesses, local government agencies, units of the university system, and nonprofit organizations to install alternative energy systems that generate energy for their own use. Funding may be used to provide loans for construction of alternative energy systems and capital investments for energy conservation purposes when done in conjunction with an alternative energy system. The program is funded by air quality penalties collected by the Department of Environmental Quality (DEQ). The program is administered by DEQ, which is responsible for developing the rules.

Alternative energy systems are defined by