Renewable Electricity Facility Tax Credit (Personal)

Summary

The Renewable Electricity Facility Tax Credit expired on 12/31/2011 and is not available to facilities that begin operating after that date. The summary below is provided solely as a point of reference.

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.

Before beginning construction the project owner must enter into an agreement with the Department of Commerce. Additionally, 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.