Georgia Clean Energy Property Tax Credit Instructions

1. Review eligibility, criteria and other requirements associated with the Clean Energy Property Tax Credit by checking the information provided on this website and the Department of Revenue regulations as well as any other applicable laws and regulations relevant to your particular project (i.e. building, environmental permits, etc.)
2. Complete installation of the clean energy property. The clean energy property for which a tax credit is being claimed must be placed in service prior to applying for a credit.
3. Retain all required documentation.
4. Complete appropriate GEFA pre-application form.
5. Await receipt of confirmation from GEFA (via e-mail).
6. Complete Department of Revenue Form IT-CEP-AP [link to DOR Form PDF].
7. Attach GEFA confirmation to IT-CEP-AP and submit to Department of Revenue.
8. If tentatively approved, claim the tax credit on your state income tax form (attach signed IT-CEP).

Eligible Products

In order to be eligible for the biomass gasification and pyrolysis equipment tax credit, the facility must meet the following criteria:

1. The facility must be a “Qualified Facility” according to Federal Energy Regulatory Commission (FERC) guidelines. Please visit the FERC website for additional information:

   • Applicant will submit a copy of the paperwork provided by FERC for the year in which the tax credit is being issued.
2. The facility must sell at least 50 percent of the total energy generated plus one kilowatt back to the grid.

Definitions and Examples

• Biomass equipment to convert wood residuals into electricity through “gasification” and “pyrolysis” is limited by definition to the actual containment vessel in which the wood is heated. Appurtenance to the containment vessel such as burners, hoppers, scales, conveyors, augers, electrostatic precipitators, ash handling equipment and monitors are not considered eligible.

Preapplication (required for preapproval of the clean energy property tax credit)

Please click here for the preapplication form.

Documentation (required to be kept by taxpayer)

Taxpayers are required to maintain documentation concerning any credits claimed. Documentation includes but is not limited to the following:

• Dated receipts, invoices, contracts marked paid, canceled checks, other proof of payment
• System manuals, product information, specifications, literature, cut sheets, warranties, etc.
• Completed GEFA pre-application.
• Any applicable federal, state or local permits and/or licenses.
• Other reasonably available and relevant material that demonstrates eligibility for the tax credit.

Confirmation

1. Upon receipt of the pre-application by GEFA, the taxpayer will receive a confirmation via e-mail.
2. Print out the confirmation and attach it to a completed Department of Revenue Form IT-CEP-AP [link to Georgia Department of Revenue Form IT-CEP-AP]
3. Mail both forms to the Department of Revenue
4. Within 60 days of receiving an application, the Georgia Department of Revenue will review and tentatively approve the application.
5. Upon receiving tentative approval, the taxpayer may claim the credit on his/her tax return for that tax year.

How much of a tax credit can be claimed for biomass gasification and pyrolysis?

The lesser of 35 percent or the sum of $500,000.00 per installation applies for clean energy property related to biomass gasification or pyrolysis.

Note: These limits do NOT apply to wood residuals delivered to a renewable biomass qualified facility. Please see the wood residuals section for relevant information and tax credit limits.