Standalone power now eligible for Oreg. biomass tax credit

By Luke Geiver | February 23, 2012

The Oregon Department of Energy has altered the biomass producer or collector tax credit, allowing for the first time standalone power to be eligible for the credit, according to Matt Krumenauer, an Oregon DOE senior policy analyst responsible for running the BPC program.

Previously, the BPC required eligible facilities to reach efficiency levels that would essentially require them to operate with combined-heat-and-power (CHP) technology before they could participate in the program. But the new version of the BPC has taken out such provisions.

The BPC awards $10 per dry ton of biomass to suppliers in an attempt to spur on the biomass industry in the state and help those who produce, collect or transport feedstock. The tax credit program has been extended through 2018, and to be eligible for the credit, an applicant must be an agricultural producer or biomass collector who sources biomass from within the state. The 2011 version of the credit was based on green tons, but the 2012 version will be based on dry tons.

Krumenauer said the decision by Oregon’s legislature to extend the program through two legislative cycles will provide assurance for the biomass industry in the state. To learn more about the BPC tax credit program and its benefits click here