Kansas - Energy tax credit, solar rebates and incentives

Kansas Renewable and Solar Energy Incentives

Renewable Electricity Facility Tax Credit (Commercial)

• Eligible Renewable: Solar Thermal Electric, Photovoltaics, Landfill Gas, Wind, Biomass, Hydroelectric, Geothermal Electric, Small Hydroelectric
• Applicable Sectors: Commercial, Industrial, Agricultural
• Amount: 10% of the system's cost for the first $50,000,000 invested
  5% of the cost that exceeds $50,000,000
  Credit must be claimed in 10 equal parts in 10 consecutive years
• Carryover Provisions: Any unused credit may be carried forward in subsequent years as a deduction. Deductions can be carried forward for up to 14 years past the year the first credit was applied.

Kansas Renewable Electricity Tax Credit Summary

Summary: Kansas provides an investment tax credit for certain renewable energy facilities constructed between January 1, 2007 and December 31, 2011. The facility must be owned by the owner of a commercial, industrial or agricultural business and be located on the property of that business. The electricity produced by the renewable energy facility must be either used on-site or displace current or future electric load. The credit is equal to 10% of the first $50 million invested in the project and 5% for an expenditures above $50 million. The credit must be claimed in 10 equal annual installments and the project must remain in service during those 10 years.

Solar and Wind Manufacturing Incentive

• Incentive Type: Industry Recruitment/Support
• Eligible Renewable/Other Technologies: Solar Water Heat, Solar Thermal Electric, Photovoltaics, Wind
• Applicable Sectors: Commercial, Industrial
• Maximum Incentive: The State of Kansas may provide up to $5 million in financing to a solar or wind manufacturing project
• Terms: Manufacturer must meet minimum requirements for investment in the state, number of employee, and salaries.

Summary: Manufacturing companies building solar or wind equipment or components in Kansas may be eligible for financing through the Kansas Department of Commerce. Financing is available to support a research, development, engineering or manufacturing project. To qualify the project must result in at least $30 million in new investments in Kansas, the hiring of at least 200 new employees within 5 years, and the company must pay at least $32,500 of average annual compensation per Kansas employee. 
 
The manufacturer must apply to the secretary of Commerce for financing. The secretary of Commerce will then request that the Kansas Development Finance Authority issue bonds to finance the project. Individual solar or wind projects are eligible for up to $5 million in financing. The principal and interest of the bonds are retired using the payroll tax withholding from the new jobs.the Department of Commerce will review the project and the agreement every year during the 10-year period in which the credits are being claimed to verify that the project is still within the terms established by the agreement.

Renewable Electricity Facility Tax Credit (Residential)

Eligible Renewable/Other Technologies: Solar Thermal Electric, Photovoltaics, Landfill Gas, Wind, Biomass, Hydroelectric, Geothermal Electric, Small Hydroelectric
Applicable Sectors: Commercial, Industrial, Agricultural
Amount: 10% of the system's cost for the first $50,000,000 invested
5% of the cost that exceeds $50,000,000
Credit must be claimed in 10 equal parts in 10 consecutive years
Carryover Provisions: Any unused credit may be carried forward in subsequent years as a deduction. Deductions can be carried forward for up to 14 years past the year the first credit was applied.

Summary: Kansas provides an investment tax credit for certain renewable energy facilities constructed between January 1, 2007 and December 31, 2011. The facility must be owned by the owner of a commercial, industrial or agricultural business and be located on the property of that business. The electricity produced by the renewable energy facility must be either used on-site or displace current or future electric load. The credit is equal to 10% of the first $50 million invested in the project and 5% for an expenditures above $50 million. The credit must be claimed in 10 equal annual installments and the project must remain in service during those 10 years. 

Federal Energy Tax Credit (Residential/Commercial)

Taxpayers and commercial business owners are granted an energy tax credit of 30% of the total expenses, which include installation of residential or commercial solar panel (PV) systems, solar thermal systems, fuel cells and labor expenses.  Residential wind energy installations and geothermal pumps are also subject to a tax exemption.  

• Solar electric systems and solar thermal heaters have no maximum incentive.
• If there is excess federal tax credit, it may be carried over to the subsequent taxable year.  
• This may continue on through consecutive years until 2016, under which unused credit may or may not be expunged.

Federal Energy Conservation Subsidy Exclusion (Residential)

• Public utilities provide residential purchasers with an exemption of 100% of energy conservation subsidies.  
• The overall worth of an installation or renewable utility regardless of the energy conservation capacity, will be excluded from the buyer’s gross income.  
• Customers who participate in a utility company’s energy conservation program may be given a reduced rate of electricity utilized or a nonrefundable credit of the price of electricity on the customer’s monthly electric bill.

Energy-Efficient Mortgages (Residential)

• With this federal loan program, homeowners may utilize energy-efficient mortgages (EEM) to either supplement or completely fund renewable energy systems.