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 Cell | 30% (ITC or Grant) | NA | 12/31/16 |
| Solar (Electricity and Fiber Optic) | 30% (ITC or Grant) | NA | 12/31/16 |
| Small Wind System | 30% (ITC or Grant) | NA | 12/31/16 |
| Wind System | 30% (ITC election/Grant) | 2.2¢ | 12/31/12 |
| Open Loop Biomass | 30% (ITC election/Grant) | 1.1¢ | 12/31/13 |
| Closed Loop Biomass | 30% (ITC election/Grant) | 2.2¢ | 12/31/13 |
| Geothermal Electric | 10% ITC or 30% ITC Election/Grant | 2.2¢ | 12/31/16 ITC or 12/31/13 PTC/election/Grant |
| Qualified Microturbine | 10% (ITC or Grant) | NA | 12/31/16 |
| Combined Heat & Power Systems | 10% (ITC or Grant) | NA | 12/31/16 |
| Geothermal Heat Pump Systems | 10% (ITC or Grant) | NA | 12/31/16 |
| Municipal Solid Waste (Trash/Landfill Gas) | 30% (ITC election/Grant) | 1.1¢ | 12/31/13 |
| Hydropower | 30% (ITC election/Grant) | 1.1¢ | 12/31/13 |
| Marine & Hydrokinetic | 30% (ITC election/Grant) | 1.1¢ | 12/31/13 |
Note: In the table above, the term “Grant” refers to the 1603 Grant.