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Temporary BETC rules clarify federal grant deductions
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Anthony Buckley, 503-373-7400
In Oregon, 1-800-221-8035
SALEM — The Oregon Department of Energy implemented temporary rules on April 18 clarifying how a federal grant, known as the Section 1603 Grant in Lieu of the Production and Investment Tax Credits, will be deducted from Business Energy Tax Credit (BETC) project costs. This federal renewable energy grant program is administered by the U.S. Department of Treasury. 
The Business Energy Tax Credit program deducts federal grants from project costs, but does not deduct federal tax credits. However, all incentives, including federal tax credits are factored into a BETC application to ensure those incentives do not exceed the total project costs. Because the Section 1603 program is called a grant in lieu of a tax credit, BETC applicants were uncertain whether or not to deduct any Section 1603 funds they might receive. 
The temporary rules clarify the definition of a federal grant and Section 1603 funds are considered a grant. The Oregon Department of Energy has reviewed current BETC applications to ensure that any Section 1603 funds have been calculated correctly. 
BETC applicants who have also applied for or received a Section 1603 grant in lieu of a federal tax credit and who have questions about their BETC application should contact Anthony Buckley at 503-373-7400.
Permanent rulemaking is expected to take place later this summer. 
About the Department of Energy: The Oregon Department of Energy provides tax credits, loans, technical assistance and energy information for homes, businesses, manufacturing, farms, ranches, schools and governments.


Oregon Department of Energy
Main OfficeHermiston Field Office
625 Marion St. NE, Salem, OR 97301-3737
395 E Highland Rd.
Phone: 503-378-4040Hermiston, OR 97838
Toll-free in Oregon: 1-800-221-8035P: 541-567-3840
Fax: 503-373-7806