Efficient Truck Technology Tax Credit

The Oregon Department of Energy offers a Business Energy Tax Credit to Oregon businesses, trades, and rental property owners that invest in efficient truck technology projects. Qualified projects may include the purchase of idle reduction equipment, aerodynamic packages, single-wide tires, and automatic tire inflation. The tax credit is 25% of eligible project costs for applicants that can document that 15-50% of the vehicle’s annual mileage occurs within Oregon. If a vehicle’s annual mileage within Oregon is greater than 50%, the tax credit is for 35% of eligible project costs. Eligible projects must have a simple payback period of between two and 15 years.

Non-profit organizations and public entities that do not have an Oregon tax liability may receive the credit for an eligible project but must “pass-through” or transfer their project eligibility to a pass-through partner in exchange for a lump-sum cash payment. The Oregon Department of Energy (ODOE) determines the rate that is used to calculate the cash payment. The pass-through option is also available to a project owner with an Oregon tax liability who chooses to transfer his or her tax credit. The ODOE must grant preliminary and final certification for a project to be eligible. The taxpayer must have filed an application for the project before April 15, 2011, and ODOE must have granted preliminary certification for the project by July 1, 2011. Projects that began prior to April 15, 2011, must receive final certification by July 1, 2014. Projects that began after April 15, 2011, must receive final certification by July 1, 2013.

(Reference House Bill 3680, 2010, House Bills 3672 and 3606, 2011, and Oregon Revised Statutes 469.185-469.225)