Incentives

calculator The information below provides details on valuable federal, state and utility company incentives for energy consumers who take measures towards reducing energy use. Many of these incentives are for the purchase and installation of energy-efficiency upgrades and equipment to businesses.

Businesses that employ energy-efficient products enjoy multiple benefits. These benefits include lower energy bills, increased work place comfort, and reduced air pollution and waste. In addition to helping lower energy bills, the energy-efficient products eligible for the new federal tax credits also lower the amount of taxes you pay.

Be sure to check the Virginia Energy Sense Incentives page often for the latest information on these incentives, including eligibility, dates and most importantly, how to redeem your incentive. Many federal programs are currently being considered for extensions as initial deadlines have passed and resources were overwhelmed. Please note that incentives paid through credits on your annual federal tax filings will require using 2010 forms, which have not yet been made available by the Internal Revenue Service.

Incentive Type	Provider	Savings	Qualifications	How to Get It	When to Get It
*ENERGY EFFICIENCY - FEDERAL*
Commercial Building Tax Incentive	Federal	A tax deduction of up to $1.80 per square foot is available to owners or tenants of new or existing commercial buildings.	New or existing commercial buildings that are constructed or reconstructed to save at least 50% of the heating, cooling, ventilation, water heating, and interior lighting energy cost of a building that meets ASHRAE Standard 90.1-2001. Partial deductions of $.60 per square foot can be taken for improvements to one of three building systems that reduce total heating, cooling, ventilation, water heating and interior lighting energy use by a certain percentage below ASHRAE 90.1-2001 — the building envelope (10%), lighting (20%), or heating and cooling system (20%).	There is no special form to claim the deduction. The taxpayer should include the amount of the deduction in the "Other deductions" line of the tax return, including a statement listing the types and amounts.	The provision is effective for property placed in service after December 31, 2005, and prior to January 1, 2014.
Combined Heat and Power Property Tax Incentive	Federal	The 10% 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.	A 10% investment tax credit for CHP property, applicable to only the first 15MW of CHP property. CHP system owners/users cannot take the credit until the year that the system is operational. To qualify, a CHP system must be 60 percent efficient (on a lower heating value basis), produce at least 20% of its useful energy as electricity and at least another 20% as useful thermal energy. To see how the CHP systems generate electricity and useful energy in a single, integrated system, click here.	Use Form 3468 for Investment Credit.	The system must be placed into service from October 4, 2008, through December 31, 2016.
Free Manufacturing Facility Energy Assessment	Federal	DOE offers no-cost, targeted energy assessments to help manufacturing facilities across the nation identify immediate opportunities to save energy and money.	The largest, most energy-intensive plants in the United States can apply to receive a 3-day system assessment from a DOE Energy Expert who will use DOE’s software tools to analyze energy use and help find ways to improve efficiency. Small- and medium-sized plants can apply to receive a 1-day assessment from one of DOE’s university-based Industrial Assessment Centers.	Complete and submit an Assessment Application Form to DOE’s Industrial Technologies Program (ITP)	This program is currently active.
*RENEWABLE ENERGY - FEDERAL*
Commercial Solar and Photovoltaic Tax Credits	Federal	The tax credits are for 30% of the cost of the system. For systems installed before January 1st, 2009, the maximum credit for individuals is $2,000 for photovoltaic systems and $2,000 for solar water heating systems. Systems installed after December 31, 2008 are not subject to a cap.	Businesses are eligible for tax credits for qualified solar water heating and photovoltaic systems, and for certain solar lighting systems. Qualifying equipment will either use solar energy to generate electricity, to heat/cool or provide hot water to a structure, or will use solar energy to illuminate the inside of a building by means of fiber-optic distributed sunlight.	For corporate taxpayers, use Form 3468 for Commercial Solar Incentives (Investment Credit).	The credits are available for systems "placed in service" between January 1, 2006 and December 31, 2016.
*ENERGY EFFICIENCY - STATE*
Energy Efficient Building Tax Exemption	State	Allows participating counties, cities, or towns to exempt or partially exempt energy efficient buildings from local property taxes.	Localities currently offering exemptions: Charlottesville, Roanoke, Spotsylvania. Eligible buildings are those that: Exceed the energy efficiency standards prescribed in the Virginia Uniform Statewide Building Code by 30 percent Or meets or exceeds performance standards of the Green Globes Green Building Rating System of the Green Building Initiative or Meets or exceeds performance standards of the Leadership in Energy and Environmental Design (LEED) Green Building Rating System of the U.S. Green Building Council or meets or exceeds performance standards or guidelines under the EarthCraft House Program or Is an Energy Star qualified home	Contact your local property tax office: Spotsylvania County City of Roanoke Charlottesville	This program is currently active in the named localities.
*RENEWABLE ENERGY - STATE*
Solar Energy Equipment Tax Exemption	State	Allows participating counties, cities, or towns to exempt or partially exempt solar energy equipment from local property taxes. Eligible technologies include passive solar space heat, active solar water heat, active solar space heat, solar thermal electricity, and photovoltaics.	Certified solar energy items are defined as any "property, including real and personal property, equipment, facilities, and devices which use solar energy that would otherwise require a conventional source of energy."	Localities offering exemptions: Albemarle, Alexandria, Charlottesville, Chesterfield, Dinwiddie, Fairfax County, Falls Church, Hampton, Hanover, Henrico, Isle of Wight, King and Queen, Loudoun, Lynchburg, Prince William, Pulaski, Roanoke, Spotsylvania, and Winchester. Contact your local tax office.	This program is currently active in the named localities.
*ENERGY EFFICIENCY – UTILITY*
Dominion Virginia Power Lighting Rewards Program	Utility	This program provides rebates on a per-fixture basis for the retrofit of existing lighting with more efficient lighting that may include: Installing high-bay fluorescents and pulse start metal halide lamps for warehouses Installing more efficient ballasts Installing LED exit signs and occupancy sensors Upgrading T12’s to T8’s Replacing incandescent bulbs with CFLs	Customer must be classified as and served under a commercial rate and have a demand of 10MW or less. Customers classified between 500 kw and 10 MW of demand and have not opted out of DSM programs are eligible. Work must be performed by a vendor participating in the network or self install.	Complete application. Submit to Dominion Rebate Programs, P.O. Box 468209, Atlanta, GA, 31146 or fax to 888–366–4606	The Program is currently active and available until fully subscribed. Installation or service must have occurred within the past 90 days of application submission.
Dominion Virginia Power HVAC Rewards Program	Utility	Find a qualified contractor to upgrade your old HVAC. Rebate ranges from $17-30 per ton for varying equipment type, size and minimum qualifying efficiency. After the installation of the new system, an application will be provided to Dominion Virginia Power and the rebate will be processed.	To qualify, your new unit must feature a rating that is greater than the current national minimum efficiency standards. The participating HVAC contractor will evaluate the heating and cooling requirements. Based on the evaluation, each customer will be provided options for purchasing a new HVAC system.	Mail signed application and all required documents to: Dominion Rebate Programs, P.O. Box 468209, Atlanta, GA, 31146 or fax to 888–366–4606	Installation or service must have occurred within the past 90 days of application submission.
Columbia Gas Business Energy Efficiency Rebate	Utility	Rebates for Purchase of Energy Efficiency Appliances / Equipment. Low-flow pre-rinse spray valves (retrofit only), high-efficiency coin-operated or laundromat clothes washer, new or replaced hot water heater, new or replaced gas boiler, new or replaced existing furnaceare available for cash rebates.	Purchase a qualified appliance or install the appropriate energy efficiency materials before applying for the rebate. Qualified appliances and materials listed here.	After purchasing and installing qualified equipment, complete and mail in General Business Application or Apply online.	All efficiency measures must be purchased and installed on or after January 1, 2010.
Commercial Energy Audits for Northern Virginia Electric Cooperative Customers	Utility	Free energy audits to commercial, industrial or government customers.	With a general walk-through, NOVEC identifies the areas where opportunities for savings exist. Opportunities are recorded and forwarded to the facility manager or operations person in charge. These may consist of identifying compressed air leaks, HVAC/R equipment requiring maintenance, key occupancy sensor locations such as storage areas and conference rooms, blocked heating/air conditioning vents, thermostat over-ride locations, and more.	For more information, contact NOVEC’s Business Development & Energy Services Division at (703) 392-1604 or toll-free at 1-888-335-0500, extension 1604 or 1763. Contact via e-mail.	Currently available.