Oregon Hearth, Patio  
& Barbecue Association

Oregon Residential Energy Tax Credits Ends after 2017

The RETC Program will continue in 2017, but due to changes in the agency's tax credit program the tax credit will "sunset" on December 31, 2017. This means these tax credits will no longer be available for appliances purchased after December 31, 2017 unless the Legislature reinstates the program. At this time the Governor is not recommending it continue.

Here are the conditions of the sunset of the program:

To meet the sunset deadline, eligible devices must be:

Purchased by December 31, 2017 (provide contract, invoice noting paid date, etc)
Installed by April 1, 2018
Applications must be received by June 1, 2018

RETC Tax Credit Appliances (valid to Dec 31, 2017)

Click HERE for the RETC Tax Credit page on the State of Oregon Dept. of Energy Website.

Click HERE for the tax credit rate chart

Click HERE to see the Oregon Dept. of Energy's tax credit rules (pdf).  

Direct Vent Gas Fireplaces

  • Use natural gas or propane
  • Meet CAN/CSA-P.4.1-09 (R2014) Fireplace Efficiency (FE) of 70 percent or greater.
  • Be direct vented to the outside with sealed combustion.
  • Have an electronic ignition that is either an intermittent or Pilot on Demand system meeting American National Standards Institute (ANSI) Z21.20-2014.

Wood and Pellet Stoves ("Premium Efficiency Biomass Combustion Devices")

  • Woodstoves must be 3.5 gph or better. Pellet and Catalytic woodstoves qualify at 2.5 gph.
  • Efficiency levels of 63% wood; 69% catalytic; and 74% pellet.
  • The tax credit is the average heating need x stove efficiency improvement x 60 cents. The maximum is $1,500 but the majority will be likely under $500. 
  • Less than one quarter of a million British thermal units (<250,000 Btus) per hour heat output;
  • Installed in an Oregon residential dwelling;
  • Installed in accordance with appliance manufacturer’s instructions;
  • Installed with a dedicated outside combustion air intake within five feet of the device, which may be a duct, barometric damper or grill;
  • (NEW rule 2015) The dwelling must have an approved carbon monoxide detector alarm device in compliance with the Regional Technical Forum Residential Weatherization Specifications as of August 30, 2011.
  • Be efficiency tested*

Efficiency testing is evidenced by: 

  • A listing in the United States Department Environmental Protection Agency (EPA) List of EPA Certified Wood Stoves with emissions of 3.5 grams of particulate per hour or less designated in that list as a non-catalytic wood stove purchased on or after January 1, 2014;
  • A listing in the List of EPA Certified Wood Stoves with emissions of 2.5 grams of particulate per hour or less if it is designated in that list as a catalytic wood or pellet stove;
  • Having a certificate of performance for the specific manufacturer and model of wood burning device from a current US EPA certified woodstove testing laboratory, tested in accordance with CSA B415.1 and submitted and approved by EPA. The certificate must show emissions of 4.0 grams of particulate per hour or less if it is designated as a non-catalytic wood stove purchased in 2013 and 3.5 grams of particulate per hour or less designated as a non-catalytic wood stove purchased on or after January 1, 2014 or emissions of 2.5 grams of particulate per hour or less if it is designated as a catalytic wood or pellet stove; or
  • A certificate of performance including the grams of smoke per hour, for pellet stoves on the List of EPA Exempt Wood Heating Appliances, for the specific manufacturer and model from a currently US EPA certified stove testing laboratory, tested in accordance with CSA B415.1. The certificate must be submitted to the department. The department will use the EPA default efficiency for pellet stoves as the device efficiency beginning on January 1, 2014.

If you are a manufacturer, click HERE for more information about listing stoves for the program that do not appear on the EPA list of certified stoves.

Who is Eligible for the Tax Credit?

Homeowners and renters are eligible for the tax credit. Landlords, builders and developers are not. You can get a tax credit only if the appliance is installed in the home you live in or in your secondary (vacation) home. The home must be in Oregon. Motor homes and recreational vehicles do not qualify. (Landlords can get a Business Energy Tax Credit for premium efficiency appliances in rental housing. Call ODOE for information.)

Can Builders get a Tax Credit for Installing Qualifying Products?

No. Builders cannot take the tax credit unless they are building the home for themselves. The homebuyer can apply for the tax credit if you pass on the receipts for the equipment when the home is purchased. Homebuilders may be eligible to take a Business Energy Tax Credit (BETC) for renewable energy devices installed in a new home.  

Applying the Tax Credit

The appliance must be purchased in the year in which the tax credit is applied. You need to show an invoice in the tax credit application. For example, if a stove is purchased in December it would be for that year. The "operational date" can be between the purchase date and April 1.  That would mean that you could buy it in December but get a permit approval in January and still claim the tax credit in the year you bought it. However, if the permit is not approved until after April 1, you could not claim the tax credit in the year you bought it.  There is an "outside air" requirement. Click HERE for a letter from ODOE that addresses some of the problems that have been encountered with the application.

Contacts at the Oregon Dept. of Energy related to the RETC program

Maureen Bock, Energy Incentives Program Manager, 503-934-4004, maureen.p.bock@state.or.us
Matt Hale, RETC Manager, 503-373-2297,
matt.hale@state.or.us
Deby Davis, RETC Lead Worker, 503-378-8351,  deby.s.davis@state.or.us
Elizabeth Ross, Rulemaking, 503-378-8534,  elizabeth.ross@state.or.us
 

Oregon Biofuels Tax Credit

Did you know you can take a tax credit for burning cord wood? The Oregon tax credit applies to companies and people who collect and consume bio fuels such as bio diesel, bio home heating oil, and biomass, such as cord wood and pellets in the case of home heating.

•The credit is $10 per bone dry ton of pellets or $10 per cord of wood.

•The credit is for fuel burned (not bought) regardless of the source. In other words, if you burn cordwood that came from a tree that fell in your backyard, that qualifies. There will be more detail on type of wood that qualifies once the rules are out.

•The credit only applies if a pellet stove is used or a woodstove on the list of EPA certified wood stoves.

The entire list of rules for Bio Fuels tax credit can be found at: www.oregon.gov/ENERGY/RENEW/docs/330-150Draft.pdf

Northwest Energy Star High Performance Home Program

This program includes products that are part of the Residential Energy Tax Credit program, it has standards for the whole home:

 http://www.oregon.gov/energy/CONS/BUS/docs/Renew/hph_requirements.pdf

Idaho Woodstove Tax Credit

The Idaho DEQ's statewide woodstove program encourages the use of cleaner-burning woodstoves.  It is designed to help homeowners burn more efficiently and create less pollution.  The State of Idaho offers taxpayers who buy new woodstoves, pellet stoves, or natural gas or propane heating units for their residences a tax deduction to replace old uncertified woodstoves.  (Fireplaces do not qualify)   Proof of disposal is required.  You can deduct 40% of the cost of purchase and professional installation in the year the woodstove is replaced, and 20% of the cost per year for the next three years (the total annual deduction cannot exceed $5,000).
 

OHPBA, PO Box 135, Salem, OR 97308-0135, 503-585-8254, www.ohpba.org

Affiliated with Hearth, Patio and Barbecue Association, Arlington, VA  www.hpba.org

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