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Oregon’s Tax Credit forSustainable Development

January 2003

Glenn Hansen, P.E.

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Mission Statements

Agency:

Protect Oregon’s environment by: Saving energy

Developing clean resources

Cleaning up nuclear waste

Conservation Division: Helping Oregonians make smart choices about their use of energy and natural resources.

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Program highlights:

Began in 1980

6,475 tax credits issued

Total project cost of about $550 million

Projects save or generate energy worth over $100 million per year

Business Energy Tax Credit Program

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Program eligibility: Project must involve energy efficiency, recycling, or renewable

resources

Provides a tax credit up to 35% of eligible project cost

Tax credit is taken over 5-year period (or 1-year if under $20,000 in eligible costs)

Business Energy Tax Credit

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Encouraging Sustainable Development Tax credit based on LEED certification - existing, recognized national program

LEED easily adapted to tax credit and requires minimal staff

Oregon requires application BEFORE project begins

Building must receive silver, gold or platinum rating and minimum 1 energy point, 1 commissioning point

Eligible costs based on the building square footage

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Encouraging Sustainable Development

Building Area Silver Gold Platinum

First 10,000 sq ft $5.71/sq ft $9.29/sq ft $14.29/sq ft

Next 40,000 sq ft $3.57/sq ft $4.29/sq ft $ 7.86/sq ft

Over 50,000 sq ft $2.00/sq ft $2.86/sq ft $ 5.71/sq ft

Calculating eligible costs

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Encouraging Sustainable Development Ecotrust’s Natural Capital Center Achieved LEED Gold

Reduced energy use

Eco-roof stores and filters storm water on site

Used recycled wood from facility reclamation

Specified low-toxic materials, recycled paints

Maximized access to fresh air and natural light

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Encouraging Sustainable Development Ecotrust’s Natural Capital Center

70,000 square feet

First 10,000 sq. ft. @ $9.29 = $ 92,900

Next 40,000 sq. ft. @ $4.29 = $171,600

Next 20,000 sq. ft. @ $2.86 = $ 57,200 ________________________________Total in eligible costs $321,700

35% of eligible costs = $112,595 tax credit

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Resources

Oregon Office of Energy625 Marion St. N.E.

Salem, OR 97301-3742

Glenn Hansen, P.E.Bill Nesmith

Charlie Stephens

Phone: (503) 378-4040

www.energy.state.or.us