| Oregon Incentives for Geothermal Power |
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| Oregon Energy Loan Program |
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The purpose of the Energy Loan Program (also known as SELP) is to promote energy conservation and renewable energy resource development. The program offers low-interest loans for projects that produce energy from renewable resources such as geothermal. The Energy Loan Program can loan to individuals, businesses, schools, cities, counties, special districts, state and federal agencies, public corporations, cooperatives, tribes, and non-profits.
Projects must be in Oregon. Loans can pay for capital costs and related costs such as engineering and design, permits, loan fees, and project management. An energy loan can be used to supplement conventional construction project financing.
Loans are fixed rate. Rates vary depending on the type of borrower and project and when the Loan Program sold bonds. Tax-exempt rates may be available. Rate subject to bond market. Call the Oregon Department of Energy for current interest rates. The application fee is .1 percent, and loans have an underwriting fee of .5 percent. Any amount of the underwriting fee greater than $500 is credited to the 1 percent loan fee at closing. The loan fee can be paid from loan proceeds.
Loan terms usually range from five to 15 years, depending on available funds and project type. Commercial loans must be fully secured. A mortgage on the project land, buildings, and equipment is usually pledged.
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| Business Energy Tax Credit |
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Oregon businesses and others that invest in renewable energy projects can get a state tax credit. A tax credit recipient must have an Oregon tax liability. The tax credit is 35 percent of eligible project costs. You file the credit over five years: 10 percent in the first and second years and 5 percent each year thereafter. For projects with eligible costs of $20,000 or less, the tax credit may be taken in one year. Unused credits can be carried forward up to eight years.
Eligible Applicants:
An eligible applicant (a project owner) must meet the following three requirements: Be a trade, business or rental property owner who files taxes for a business site in Oregon or be an Oregon non-profit organization, tribe, or public entity that partners with an Oregon business or resident who has an Oregon tax liability; own or be the contract buyer of the project; and use the equipment yourself or lease it to another person or business in Oregon.
Timing:
The Oregon Department of Energy must receive your Application for Preliminary Certification for Renewable Energy Projects BEFORE you start your project. If you started your project within the past 90 days, you may request a waiver in writing. The waiver request must demonstrate an extenuating business circumstance that caused the delay in your application. Under extraordinary circumstances, the Department of Energy Director may extend the waiver period provided the project serves the aims of the program.
To qualify for a Business Energy Tax Credit, work on the project must begin within three years of the approval date of the Preliminary Certificate or within three years of the approval date of any changes to the project. Projects that save energy must have a simple payback of more than one year. Projects with simple paybacks greater than 15 years will be prorated. You must receive a Final Certificate before the credit can be claimed on an Oregon tax return.
Attach data that show the resource can be used for the life of the project. Following are requirements by resource type: Geothermal A plot of well head temperature versus time at the design flow rate and steady state temperature.
Questions about loans or tax credits? Call the Oregon Department of Energy at 1-800-221-8035 (toll-free in Oregon) or (503) 378-4040 (Salem). Or visit our Web site (www.energy.state.or.us).
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| Energy Trust of Oregon |
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The Energy Trust utility-scale generation program supports the development of large-scale energy projects through cash incentives that buy down the higher costs usually associated with producing renewable energy. Each year, Energy Trust sets aside several million dollars for this purpose, and works with PacifiCorp and Portland General Electric to select projects that have been proposed as part of those utilities’ integrated resource planning.
Utility-scale energy projects produce at least 10 MW of electric power. Potential projects include large-scale geothermal resources.
Questions about cash incentives? Call the Energy Trust of Oregon us at 1-866-ENTRUST (368-7878). Or visit our Web site (www.energytrust.org).
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