Governmental financial incentive programs
Arkansas Energy Technology Loan Fund
The AETL Fund finances energy efficiency retrofits and green energy implementation for companies in Arkansas. The AETL Fund encourages Arkansas' companies to make investments in clean technologies and improvements in the energy efficiency of commercial and industrial processes and systems. This enables companies that operate with a higher degree of energy efficiency to devote more resources to retaining and creating jobs. Low interest rate loans are provided to assist those companies in financing their energy cost reduction efforts.
Technology Transfer Assistance Grant Program
The Technology Transfer Assistance Grant Program (TTAG) assists Arkansas’ enterprises in developing or improving products or processes through the transfer of technical solutions to technology-based, industry-driven problems, thus enhancing that enterprise’s market competitiveness.
US DOE Industrial Technologies funding
The majority of Office of Energy Efficiency and Renewable Energy (EERE) financial opportunities are for business, industry, and universities. Manufacturers of wind energy equipment, fuel cells, biomass fuels, and LED lighting may be interested in the opportunities for 2010.
Industrial Plant Assessments through Save Energy Now!
Manufacturing plants that consume at least 0.5 TBtu (500 Billion Btu, about $3 million) annually may qualify for an in-depth system-specific energy audit from the DOE. The Clearinghouse can help you with the application process.
Small and medium manufacturing facilities may qualify for energy audits through the DOE’s Industrial Assessment Center program. There are several IACs that serve Arkansas, including Oklahoma State University, University of Arkansas, University of Louisiana-Lafayette, Mississippi State University, and University of Memphis.
Arkansas State Utility Tax reduction
Arkansas Acts 691 and 695 reduce the state sales and use tax rate for natural gas and electricity purchased by a qualified manufacturer classified within NAICS codes 31 through 33 and used or consumed directly in the actual manufacturing process to two and five eighths percent (2.625%) beginning July 1, 2011. The total rate is 2.75% when combined with the Conservation Tax levied by the Arkansas Constitution.
Arkansas Manufacturing Solutions will be glad to assist you in completing the necessary forms to qualify for this tax reduction. Contact Sherry Smith at (501) 837-8679.
To certifiy your utility meters and qualify for the tax reduction, you must complete form ET-185 ARC, which can be found here. If your company pays taxes electronically, you can set up automatic refunds. Meters must be recertified every 3 years.
You must complete form ET185R, which can be found here, to apply for a refund for overpayment of taxes.
Renewable Technology Rebate Fund
The Arkansas Energy Office is administering $1.8 Million in grants for solar and wind energy generation projects. This program offers $1.50 per kWh generated by solar photovoltaic systems or $1.25 per kWh generated by small wind turbines. Limitations apply.
DOE Loan Guarantee Program
A principal purpose of the Title XVII loan guarantee program is to encourage early commercial use in the United States of new or significantly improved technologies in energy projects. DOE's loan guarantee program is not intended for technologies in research and development. DOE believes that accelerated commercial use of new or improved technologies will help to sustain economic growth, yield environmental benefits, and produce a more stable and secure energy supply.
Business Tax Incentives
A tax deduction of up to $1.80 per square foot is available to owners or tenants (or designers, in the case of government-owned buildings) of new or existing commercial buildings that are constructed or reconstructed to save at least 50% of the heating, cooling, ventilation, water heating, and interior lighting energy cost of a building that meets ASHRAE Standard 90.1-2001.
Federal Tax Credits for efficient energy technologies
IRS tax code 26 USC § 48 provides tax credits for renewable energy and efficient energy technologies. To claim these tax credits you must file IRS Form 3468. Additional information on these credits can be found at http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=US02F.
You should always check with your tax professional to determine if you are eligible for these or any other tax credits.
Efficient energy technologies
Combined Heat and Power Tax Credit http://energytaxincentives.org/business/chp.php
A 10% investment tax credit is available for combined heat and power property.
Fuel Cell Tax Credit http://energytaxincentives.org/business/fuel_cells.php
A 10% investment tax credit is available for fuel cell installations.
Microturbine Tax Credit http://energytaxincentives.org/business/fuel_cells.php
A 10% investment tax credit is available for microturbine properties.
Renewable Energy Tax Credits - http://energytaxincentives.org/business/renewables.php
Federal tax credits are available for several renewable energy technologies
Geothermal and Solar Tax Credit
A 10% investment tax credit is available for properties that utilize geothermal or solar energy.
Small Wind Tax Credit
A 30% investment tax credit is available for small wind turbine installations.
Geothermal Heat Pump Tax Credit
A 10% investment tax credit is available for geothermal heat pump installations.
