Congress Reinstates 10% Investment Tax Credit (ITC) for CHP Turbines
Combined Heat and Power (CHP) technology allows electricity to be generated from steam used in industrial processes that may otherwise go underutilized. CHP processes utilize this steam to drive a turbine that generates electricity.
The technology is becoming increasingly popular energy solution due to its cost effectiveness, efficiency, and environmental advantages.
A number of ethanol plants have been adopting this technology. This may be because CHP often:
- reduces their energy costs
- improves their environmental footprint
- and enhances the reliability of their operations.
Previously, there was a federal Investment Tax Credit (ITC) to facilitate the implementation of this equipment throughout the United States. However, it had expired at the end of 2016, before many CHP projects had been “placed in service” (a requirement to have been able to claim the 10% ITC).
As part of a government-spending bill, Congress just approved a five-year extension of the ITC. This extension is for uses that include geothermal heat pumps, small wind, fuel cells, microturbines, and combined heat and power applications.
This is a significant development for a number of companies!
- Have you placed a CHP turbine in service since 1/1/17?
- Are you in the process of completing a CHP project?
- Are you considering a project involving microturbine or combined heat and power technology?
- Do you simply have questions about the ITC and other incentives like REAP grants that may be available for your next project?
If you are an ethanol producer or another company that answered “yes” to one of these questions, you should contact us for assistance with an eligibility determination and properly claiming the 10% ITC.[button_1 text=”Contact%20Christianson%20Today!” text_size=”15″ text_color=”#ffffff” text_font=”Lato;google” text_letter_spacing=”1″ subtext_panel=”N” text_shadow_panel=”N” styling_width=”30″ styling_height=”20″ styling_border_color=”#ffffff” styling_border_size=”5″ styling_border_radius=”23″ styling_border_opacity=”100″ styling_gradient_start_color=”#1b335d” styling_gradient_end_color=”#1b335d” drop_shadow_panel=”N” inset_shadow_panel=”N” align=”center” href=”https://www.christiansoncpa.com/contact-us/”/]