CHP or Cogeneration

Cogeneration also called CHP or combined Heat and Power is an integrated energy system that can create heat as well as electricity. It is extremely energy efficient and has a high Return-On-Investment. There are also some wonderful tax incentives out there, as well as a few low interest loans & grants. We have spoken about cogeneration before and will probably will mention it again. It is one of our favorites.

The Federal Tax Incentive:

What is the tax incentive for Cogeneration or (CHP) property?
A 10% investment tax credit, applicable to only the first 15MW.

Who is eligible?
Owners of systems smaller than 50 MW may take advantage of this tax credit, and their systems must be placed into service by December 31, 2016. Only the original constructor may take the tax credit.

What are the incentives and how do they work?
The incentive is an investment tax credit, a reduction in either overall individual or overall business tax liabilities. The incentive can also be applied to the alternative minimum tax. Cogeneration owners cannot take the credit until the system is operational.

For more information about this tax credit please contact us. Check back soon we will be releasing our video all about cogeneration in the next week.

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