Sectors: Commercial, Industrial, Investor-Owned Utility, Cooperative Utilities, Agricultural

The federal Business Energy Investment Tax Credit (ITC) has been amended a number of times, most recently in December 2015. The table below shows the value of the investment tax credit for each technology by year.  The expiration date for solar technologies and wind is based on when construction begins. For all other technologies, the expiration date is based on when the system is placed in service (fully installed and being used for its intended purpose).

Technology12/31/1612/31/1712/31/1812/31/1912/31/2012/31/2112/31/22Future Years
PV, Solar Water Heating, Solar Space Heating/Cooling, Solar Process Heat30%30%30%30%26%22%10%10%
Hybrid Solar Lighting, Fuel Cells, Small Wind30%N/AN/AN/AN/AN/AN/AN/A
Geothermal Heat Pumps, Microtubines, Combine Heat and Power Systems10%N/AN/AN/AN/AN/AN/AN/A
Geothermal Electric10%10%10%10%10%10%10%10%
Large Wind30%24%18%12%N/AN/AN/AN/A
  • Solar Technologies. Eligible solar energy property includes equipment that uses solar energy to generate electricity, to heat or cool (or provide hot water for use in) a structure, or to provide solar process heat. Hybrid solar lighting systems, which use solar energy to illuminate the inside of a structure using fiber-optic distributed sunlight, are eligible. Passive solar systems and solar pool-heating systems are not eligible.
  • Fuel Cells. The credit is equal to 30% of expenditures, with no maximum credit. However, the credit for fuel cells is capped at $1,500 per 0.5 kilowatt (kW) of capacity. Eligible property includes fuel cells with a minimum capacity of 0.5 kW that have an electricity-only generation efficiency of 30% or higher.
  • Small Wind Turbines. The credit is equal to 30% of expenditures, with no maximum credit for small wind turbines placed in service after December 31, 2008. Eligible small wind property includes wind turbines up to 100 kW in capacity. (In general, the maximum credit is $4,000 for eligible property placed in service after October 3, 2008, and before January 1, 2009. The American Recovery and Reinvestment Act of 2009 removed the $4,000 maximum credit limit for small wind turbines.) Small wind turbines must meet the performance and quality standards set forth by either the American Wind Energy Association Small Wind Turbine Performance and Safety Standard 9.1-2009 (AWEA), or the International Electrotechnical Commission 61400-1, 61400-12, and 61400-11 (IEC)
  • Geothermal Systems. The credit is equal to 10% of expenditures, with no maximum credit limit stated. Eligible geothermal energy property includes geothermal heat pumps and equipment used to produce, distribute or use energy derived from a geothermal deposit. For electricity produced by geothermal power, equipment qualifies only up to, but not including, the electric transmission stage. For geothermal heat pumps, this credit applies to eligible property placed in service after October 3, 2008. Note that the credit for geothermal property, with the exception of geothermal heat pumps, has no stated expiration date.
  • Microturbines. The credit is equal to 10% of expenditures, with no maximum credit limit stated (explicitly). The credit for microturbines is capped at $200 per kW of capacity. Eligible property includes microturbines up to two megawatts (MW) in capacity that have an electricity-only generation efficiency of 26% or higher.
  • Combined Heat and Power (CHP). The credit is equal to 10% of expenditures, with no maximum limit stated. Eligible CHP property generally includes systems up to 50 MW in capacity that exceed 60% energy efficiency, subject to certain limitations and reductions for large systems. See the note at the bottom of this page for more details. The efficiency requirement does not apply to CHP systems that use biomass for at least 90% of the system’s energy source, but the credit may be reduced for less-efficient systems. This credit applies to eligible property placed in service after October 3, 2008.
  • Production Tax Credit-Eligible Technologies. Technologies that are eligible for the Production Tax Credit (PTC) were eligible to opt for the ITC in lieu of the PTC if construction commenced prior to January 1, 2015. As of January 1, 2015, only wind energy systems are eligible to claim the ITC in lieu of the PTC.

In general, the original use of the equipment must begin with the taxpayer, or the system must be constructed by the taxpayer. The equipment must also meet any performance and quality standards in effect at the time the equipment is acquired. The energy property must be operational in the year in which the credit is first taken.

Significantly, the American Recovery and Reinvestment Act of 2009 repealed a previous restriction on the use of the credit for eligible projects also supported by “subsidized energy financing.” For projects placed in service after December 31, 2008, this limitation no longer applies. Businesses that receive other incentives are advised to consult with a tax professional regarding how to calculate this federal tax credit.

At A Glance

  • System Size

    173.6kw

  • Estimated Savings

    $28,483 Annually

  • Utility Provider

    WE Energies

  • Connection Type

    Net Metered

  • Environmental Equivalents

    184,864 Pounds of Coal

At A Glance

  • System Size

    26kw

  • Estimated Savings

    $4,238 Annually

  • Utility Provider

    Two Rivers Water & Light

  • Connection Type

    Parallel Generation

  • Environmental Equivalents

    2,411,958 Smartphones Charged

At A Glance

  • System Size

    23.8kw

  • Estimated Savings

    $3,716 Annually

  • Utility Provider

    Alliant Energy

  • Connection Type

    Parallel Generation

  • Environmental Equivalents

    1,948 Pounds of Coal

At A Glance

  • System Size

    197.6kw

  • Estimated Savings

    $22,293 Annually

  • Utility Provider

    WE Energies

  • Connection Type

    Net Metered

  • Environmental Equivalents

    20,695 Gallons of Gas

At A Glance

  • System Size

    149.5kw

  • Estimated Savings

    $23,913 Annually

  • Utility Provider

    WE Energies

  • Connection Type

    Net Metered

  • Environmental Equivalents

    1.8 Tanker Trucks of Gas

At A Glance

  • System Size

    123kw

  • Estimated Savings

  • Utility Provider

    Madison Gas & Electric

  • Connection Type

    Parallel Generation

  • Environmental Equivalents

    13,709,514 Smartphones Charged

At A Glance

  • System Size

    389kw

  • Estimated Savings

    $56,681 Annually

  • Utility Provider

    WE Energies

  • Connection Type

    Net Metered

  • Environmental Equivalents

    44,398,424 Smartphones Charged

At A Glance

  • System Size

    133.2kw

  • Estimated Savings

    $1,114,935

  • Utility Provider

    Madison Gas & Electric

  • Connection Type

    Parallel Generation

  • Environmental Equivalents

    14,727 Gallons of Gas

At A Glance

  • System Size

    25.7kw

  • Estimated Savings

  • Utility Provider

    WE Energies

  • Connection Type

    Parallel Generation

  • Environmental Equivalents

    26,293 Pounds of Coal

At A Glance

  • System Size

    26kw

  • Estimated Savings

  • Utility Provider

    Alliant Energy

  • Connection Type

    Parallel Generation

  • Environmental Equivalents

At A Glance

  • System Size

    28.86kw

  • Estimated Savings

  • Utility Provider

    WE Energies

  • Connection Type

    Net Metered

  • Environmental Equivalents

At A Glance

  • System Size

    43.6kw

  • Estimated Savings

    $151,039

  • Utility Provider

    WE Energies

  • Connection Type

    Net Metered

  • Environmental Equivalents

    4,817,623 Smartphones Charged

At A Glance

  • System Size

    73.84kw

  • Estimated Savings

    $329,713

  • Utility Provider

    Plymouth Utilities

  • Connection Type

    Parallel Generation

At A Glance

  • System Size

    64.845kw

  • Estimated Annual Savings

    $21,442

  • Utility Provider

    WPS

  • Connection Type

    Parallel Generation

At A Glance

  • System Size

    133kw

  • Estimated Savings

    $386,522

  • Utility Provider

    Alliant Energy

  • Connection Type

    Parallel Generation

  • Environmental Equivalents

    12,550 Gallons of Gas

At A Glance

  • System Size

    26.6kw

  • Estimated Anual Savings

    $3,953

  • Utility Provider

    Alliant Energy

  • Connection Type

    Parallel Generation

  • Environmental Equivalents

    12,578 Pounds of Coal

At A Glance

  • System Size

    128.7kw

  • Estimated Savings

    $513,821

  • Utility Provider

    Manitowoc Public Utilites

  • Connection Type

    Parallel Generation

  • Environmental Equivalents

    13,964,512 Smartphones Charged

At A Glance

  • System Size

    45.5kw

  • Estimated Savings

    $275,531

  • Utility Provider

    WE Energies

  • Connection Type

    Parallel Generation

  • Environmental Equivalents

    4,679,952 Smartphones Charged

At A Glance

  • System Size

    1.825 MW

  • Estimated Savings

    $103,000 Annually

  • Utility Provider

    WE Energies

  • Connection Type

    Direct Sell Rate Tariff

  • Environmental Equivalents

    1,740,000 ton of CO2 emissions

At A Glance

  • System Size

    388.8kw

  • Annual Savings

    $51,288

  • Utility Provider

    WE Energies

  • Connection Type

    Net Metering

  • Environmental Equivalents

    26,104 gallons of gasoline consumed. 22,789 gallons of diesel consumed. 256,673 pounds of coal burned. 3.1 tanker trucks' worth of gasoline.

At A Glance

  • System Size

    388.9kw

  • Annual Savings

    $51,340

  • Utility Provider

    WE Energies

  • Connection Type

    Net Metering

  • Environmental Equivalents

    26,135 gallons of gasoline consumed. 22,815 gallons of diesel consumed. 256,973 pounds of coal burned. 3.1 tanker trucks' worth of gasoline.

At A Glance

  • System Size

    299.3kw

  • Annual Savings

    $42,934

  • Utility Provider

    WE Energies

  • Connection Type

    Net Metering

  • Environmental Equivalents

    20,076 gallons of gasoline consumed. 17,526 gallons of diesel consumed information. 197,404 pounds of coal burned.

At A Glance

  • System Size

    50.7 kW - DC

  • Estimated Savings

    $10,329

  • Utility Provider

    WE Energies

  • Connection Type

    Line Side/Parallel Generation (CGS-NM)

  • Environmental Equivalents

    361,853lbs of coal burned annually

At A Glance

  • System Size

    31.87 kW

  • Estimated Savings

    $4,998 Anually

  • Utility Provider

    WE Energies

  • Connection Type

    Monthly Net Metering (CGS-NM)

  • Environmental Equivalents

    CO2 Emissions: 22.6 Metric Tons 2,341 Gallons of Gasoline

At A Glance

  • System Size

    370kw

  • Estimated Savings

    $1,053,732

  • Utility Provider

    Alliant Energy

  • Connection Type

    Parallel Generation

  • Environmental Equivalents

    401,786 lbs. of Coal or 44,218,770 smartphones charged.

At A Glance

  • System Size

    389kw

  • Estimated Savings

    $1,190,164

  • Utility Provider

    WE Energies

  • Connection Type

    Net Metering

  • Environmental Equivalents

    384,108 lbs. of Coal or 42,273,187 smartphones charged