U.S. Department of Energy Energy Efficiency and Renewable Energy

Summary of Federal Renewable Energy Tax Incentives

For different renewable energy technologies—called eligible property—the table below summarizes the investment tax credit (ITC) or 1603 Grant rate by percentage of installed cost, production tax credit (PTC) rate per kilowatt-hour (kWh), and the date the credit expires.

Eligible Property
(energy equipment)
ITC or 1603 Grant Rate
(% of installed cost)
PTC Rate
(per kWh)
Credit Expiration
Qualified Fuel Cell30% (ITC or Grant)NA12/31/16
Solar (Electricity and Fiber Optic)30% (ITC or Grant)NA12/31/16
Small Wind System30% (ITC or Grant)NA12/31/16
Wind System30% (ITC election/Grant)2.2¢12/31/12
Open Loop Biomass30% (ITC election/Grant)1.1¢12/31/13
Closed Loop Biomass30% (ITC election/Grant)2.2¢12/31/13
Geothermal Electric10% ITC or 30% ITC Election/Grant2.2¢12/31/16 ITC or
12/31/13 PTC/election/Grant
Qualified Microturbine10% (ITC or Grant)NA12/31/16
Combined Heat & Power Systems10% (ITC or Grant)NA12/31/16
Geothermal Heat Pump Systems10% (ITC or Grant)NA12/31/16
Municipal Solid Waste (Trash/Landfill Gas)30% (ITC election/Grant)1.1¢12/31/13
Hydropower30% (ITC election/Grant)1.1¢12/31/13
Marine & Hydrokinetic30% (ITC election/Grant)1.1¢12/31/13

Note: In the table above, the term “Grant” refers to the 1603 Grant.