Energy

Incentives for Biodiesel, Renewable Biodiesel, and Alternative Fuels

The incentives for biodiesel and renewable biodiesel include: a $1 credit against income tax for every gallon of biodiesel or renewable biodiesel produced; a $1 credit against fuel excise taxes for every gallon of biodiesel or renewable diesel used in producing a biodiesel mixture; and, a 10-cent credit for every gallon produced by a small […]

Rural Energy for America Program

The Rural Energy for America Program (REAP)—most recently reauthorized by the 2018 Farm Bill—provides loan guarantees and grants for rural small business and agricultural producers to purchase renewable energy systems, energy efficiency improvements, energy audits and feasibility studies. Renewable energy systems include wind, solar, geothermal, hydroelectric, biomass, hydrogen and ocean power. Even though REAP was […]

Expensing of Tertiary Injectants

Tertiary recovery, sometimes called “enhanced oil recovery,” refers to a variety of methods used to increase the productivity of an oil and gas reservoir by injecting materials into the formation to increase the reservoir pressure, increase the mobility of the remaining hydrocarbons within the formation, or increase separation between injected fluids (used for secondary recovery) […]

Cellulosic (Second Generation Biofuel) Production Tax Credit

Established by the Food, Conservation, and Energy Act of 2008, the Cellulosic Production Tax Credit is a credit of up to $1.01/gallon for “liquid fuel produced from any lignocellulosic or hemicellulosic matter that is available on a renewable basis or any cultivated algae, cyanobacteria, or lemna.” Lignocellulose and hemicellulose are both components of the cell […]

Department of Energy Loan Guarantee Authority

The Department of Energy’s (DOE) Loan Guarantee Program was created for the purpose of lowering the financial risk of large private sector commercial energy projects that use advanced technologies. Amendments to the program have expanded the list of eligible technologies to include: nuclear, certain coal, carbon capture and sequestration (CCS) technologies, hybrid gas or diesel […]

Excess of Percentage Over Cost Depletion, Other Fuels

Businesses are generally allowed to recoup capital costs associated with acquiring or creating an asset by deducting these costs from their taxable income. Typically, the costs are depreciated—deducted each year in proportion to the remaining useful life of the asset, corresponding to the income it generates. For natural resource assets, the costs of acquiring the […]

Department of Energy Advanced Reactor Demonstration Program

The Advanced Reactor Demonstration Program (ARDP) uses taxpayer money to develop and demonstrate advanced reactors through cost-share agreements with the nuclear industry. There are three pathways through which industry partners can apply: (1) advanced reactor demonstrations, which will support the development of advanced nuclear reactors that are expected to be fully functional within seven years […]

Credit for Production of Advanced Nuclear Power Facilities

The credit for production of advanced nuclear power applies to facilities with designs approved after 1993 and that are placed in service before 2021. It provides a 1.8 cent per kilowatt hour tax credit that can be claimed during the first eight years after a facility has been placed in service, subject to certain limitations […]