Renewable Energy Equipment Accelerated Depreciation (Minnesota)

From Open Energy Information

Summary

Last modified on May 23, 2011.

Financial Incentive Program

Place Minnesota


Name Renewable Energy Equipment Accelerated Depreciation
Incentive Type Corporate Depreciation
Applicable Sector Commercial, Industrial
Eligible Technologies Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Photovoltaics, Wind
Active Incentive No


Energy Category Renewable Energy Incentive Programs














Program Administrator Minnesota Department of Commerce
Website http://www.state.mn.us/cgi-bin/portal/mn/jsp/content.do?subchannel=-536881511&programid=536885394&id=-536881350&agency=Commerce&sp2=y


References DSIRE[1]


Summary

Minnesota is the only state with accelerated depreciation provisions for renewable energy systems. Minnesota’s incentive mirrors the federal modified accelerated cost recovery schedule (MACRS) for renewables. That is, a five year, 200% declining balance accounting method. The federal code it mirrors is titled "Accelerated Cost Recovery System" and is located in the U.S. tax code in Title 26, Subtitle A, Chapter 1, Subchapter B, Part VI, Section 168.

It was estimated by one analyst that a company installing a qualified system would realize a net project cost reduction over the first three years of 6% due to the state program and an additional 25% due to the federal program. The difference in impact is because Minnesota’s corporate tax rates are lower than U.S. corporate tax rates. Minnesota’s accelerated depreciation allowance has not yet had a significant impact on generation of solar or wind projects, primarily because it has lacked formal publicity.

Incentive Contact

Contact Name Energy Information Center
Department Minnesota Department of Commerce
Division Office of Energy Security
Address 85 7th Place East, Suite 500
Place St. Paul, Minnesota
Zip/Postal Code 55101-2198
Phone (651) 296-5175
Phone 2 (800) 657-3710
Email energy.info@state.mn.us
Website http://www.energy.mn.gov/



  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]

References

  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency (DSIRE) accessed 2010-05-21" Cite error: Invalid <ref> tag; name "DSIRE" defined multiple times with different content