Georgia passes clean energy tax credit legislation

Web exclusive posted July 8, 2008 at 4:44 p.m. CST

Georgia legislators recently passed a bill that would entitle business owners and residential consumers to an income tax credit if certain clean energy property criteria were met. The bill, which went into effect on July 1, allows for a yearly budget of $2.5 million in tax credits until 2012 - for property placed into service between the July 1 enactment date and Dec. 31, 2012. The credits will be awarded by the Georgia Department of Revenue through an application process until the set budget is expended.

The bill defines clean energy property as the following:

• Solar energy equipment that uses solar radiation as a substitute for traditional energy for heating, cooling, and electric purposes


• Energy Star certified geothermal heat pump systems


• Lighting retrofit projects


• Energy efficient buildings


• Wind equipment to convert wind energy into electricity


• Biomass equipment to convert wood residuals into electricity through gasification and pyrolysis

Georgia House Bill 670 defines a qualifying renewable biomass facility as meeting energy source and energy input percentage standards according to the Federal Energy Regulator Commission. It also states that wood residuals may not include any wood from national forests, and must consist of land-clearing residue, urban wood residue, and pellets. Taxpayers are also eligible for credits resulting from the transporting or diverting of wood residuals to biomass facilities on a per-ton basis. Credits are subject to inspection and calculation of a dollar amount reported from the Georgia Forestry Commission.

For more information about the bill, visit www.legis.ga.gov/legis/2007_08/search/hb670.htm.