Business Tax Incentives

Fuel Cells & Microturbines

What are the tax incentives for fuel cells and microturbines?

These incentives are tax credits for two advanced distributed generation technologies: qualifying fuel cell and microturbine systems. Fuel cells generate electricity through a chemical process. They are somewhat similar to batteries, except fuel must be fed continuously to them. Microturbines are small power generation systems using a gas turbine engine, based on related turbines used in transportation. The credits are available for systems "placed in service" in prior to December 31, 2016.

Who is eligible for the tax incentives?

The credits are primarily for business use of this equipment, although individuals are eligible for the fuel cell tax incentive. Recent legislation extends the incentive to all utilities and telecommunications firms. This credit is permissible against the Alternative Minimum Tax (AMT).

What are the incentives and how do they work?

What do I have to do to qualify for these incentives?

To qualify, taxpayers will probably need to have evidence regarding:

Where can I learn more about qualifying products?

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