Nikki Dobay
Nikki Dobay is an associate practicing in the Tax section of the Business Services Group. Her practice focuses primarily on federal,state, and local tax issues for a wide variety of corporate andpass-through entities and for individuals. Nikki's practice alsoincludes resolving federal and state tax controversies and tax planningfor business formations and acquisitions.
New Temporary BETC Rules Issued by ODOE
The Oregon Department of Energy (ODOE) has issued new temporary BETC rules. The purpose of these rules, according to ODOE, is to clarify how the Section 1603 Grant will be deducted from BETC project costs. In an apparent reversal of ODOE’s recent position during the Tier Two and Tier Three application phases, the temporary rules appear to exclude from the definition of a “federal grant” any Section 1603 Grant that was obtained before April 18, 2011. However, the Section 1603 Grantwill be deducted from “certified” costs for projects that receive preliminary certification and that start construction after April 18, 2011 (the issuance date of these temporary rules). The temporary rules define certified costs to be the “costs certified in the final certification issued pursuant to ORS 469.215.” To see ODOE’s news release and a copy of the new temporary rules follow the links below.
http://oregon.gov/ENERGY/CONS/BUS/docs/TempBETCrules18APR11withedits.pdf [rules]
http://www.oregon.gov/ENERGY/news/1133BETCFedGrant.shtml [news release]
ODOE Issues Permanent Biomass Producer/Collector Tax Credit Rules
Yesterday, the Oregon Department of Energy issued is final administrative rules for the biomass producer /collector tax credit. The new permanent rules can be viewed at the following link: http://oregon.gov/ENERGY/RENEW/Biomass/docs/BPC_PermRules.pdf/oregon.gov/ENERGY/RENEW/Biomass/docs/BPC_PermRules.pdf
ODOE Announces Funding for Small Renewable Projects Gone
Earlier this year, the Oregon Department of Energy (“ODOE”) allocated $10 million in tax credits for renewable energy projects with costs of less than $500,000 (“Tier One Projects”). On Wednesday, October 13, ODOE announced that it will no longer accept applications for Tier One Projects because as of October 11 ODOE had received applications for credits in excess of the $10 million allocated for Tier One Projects. ODOE expects funding for Tier One Projects to become available in January 2011.
Upcoming BETC Deadline--July 30, 2010
Pursuant to recently issued temporary regulations, the Oregon Department of Energy has imposed a July 30, 2010 deadline for projects seeking a BETC that have projected facility costs of $6 million or greater. See the link below for specific details.
HB 3680 Passes Oregon House
On February 10, 2010, the Oregon House passed HB 3680, which if enacted would substantially curtail the BETC for certain renewable energy projects. HB 3680 would impose an overall statewide cap, on the amount of potential tax credits that the Department of Energy could certify. The statewide cap would be $300 million for the 2009-11 biennium, and $150 million for the year beginning July 1, 2011 and ending June 30, 2012. HB 3680 would also authorize the Department of Energy to write rules relating to the priority to be given if applications for preliminary certification exceed those caps. In addition to the overall cap discussed above, HB 3680 would also impose the following cutbacks for large wind facilities (more than 10 megawatts):
- For facilities that obtain preliminary certification between January 1, 2010 and January 1, 2011, the BETC would be limited to $3.5 million
- For facilities that obtain preliminary certification between January 1, 2011 and January 1, 2012, the BETC would be limited to $2.5 million
- For facilities that obtain preliminary certification after January 1, 2012, the BETC would be limited to $1.5 million
HB 3680 would adopt several criteria implemented by the Department of Energy in the Temporary Rules adopted in November 2009, and would modify the definition of a “transportation facility” to include efficient truck technology for commercial motor vehicles. These provisions would apply retroactively to July 1, 2009. HB 3680 would also allow the Department of Energy to suspend or revoke a final certificate if a facility is no longer operating. This provision would apply retroactively to January 1, 2009. Finally, HB 3680 would extend the sunset date to January 1, 2014, for renewable energy resource equipment manufacturing facilities, but would not extend the sunset date for other facilities.
