EIP and BETC Temporary Transfer Process Rule Filed
The Oregon Department of Energy adopted temporary rules on March 23, 2015, amending the transfer process for the Energy Incentives Program and the Business Energy Tax Credit. The change is retroactive to transfers that occurred on or after Dec. 22, 2014, for EIP projects and on or after July 10, 2012, for BETC projects.
The statute authorizing the sale of tax credits for these programs, ORS 469B.103 and 469B.112, is broad. It states that the cash payment must equal the present value and ODOE must establish a formula to be used in determining the prices of credits. The statute does not require the present value at which the credit is transferred to equal the formula, but requires ODOE to provide, by rule, a formula to be used in determining the price of credits.
By Oregon Administrative Rule, the Oregon Department of Energy provides two processes for BETC or EIP project owners to sell a tax credit: the pass-through or transfer process.
- For the pass-through process, the department holds the credit’s certificate until a partner is located and may provide assistance and prescribe by rule a set rate for the present value of the tax credit.
- For the transfer process, the credit is issued to the project owner. The department does not provide assistance nor does it enforce a specific rate for the present value of the tax credit. However, the parties may use the present value rate in the department’s rules as a guide for the transaction.
Project owners who use the pass-through or transfer process must meet all statute and rule requirements for the transfer. This includes the requirement in ORS 315.052 that states that no portion of the tax credit be used prior to the transfer.
The Oregon Department of Energy plans to begin permanent rulemaking to address these rule sections during the summer of 2015.
If you have any questions or need further information, please contact:
Oregon Department of Energy