Federal Tax Credit
The Investment Tax Credit (ITC) for fuel cell technology provides business property owners with a credit of 30% of the cost of the fuel cell units or up to $3,000 per kW, whichever is lower. The credit expires on December 31, 2016.
The ITC entitles the taxpayer to subtract the amount of the credit (dollar-for-dollar) from total federal tax liability. A tax credit is different from a tax deduction - which subtracts money from gross income before tax liability is calculated.
Allowance of credit is permissible against the Alternative Minimum Tax (AMT). This allows persons subject to AMT to take the credit against that portion of their tax liability.
Grant-in-lieu of Credit Program
Companies who install and commission fuel cells in 2010, and are otherwise eligible for the fuel cell tax credit, may also apply for the grant-in-lieu of credit program which offers this incentive as a rebate instead of a tax credit.
Plug Power has recently collaborated with OEMs, hydrogen providers and suppliers across the United States to achieve an extension for this legislation which was set to expire December 31, 2010. The grant-in-lieu of credit program now expires on December 31, 2012.
With the support from federal and state funding agencies, including the Department of Energy (DOE), Defense Logistics Agency (DLA), New York State Energy Research and Development Authority (NYSERDA) and the Ohio Department of Development (ODOD), Plug Power is able to continue critical research and development work while engaging in large-scale commercial deployments and market transformation activities.