Solar & Battery Regulation & Incentive Programs

Sales Tax Credit for Clean Energy Technology

Program Overview


Category:
Financial Incentive
Program Type:
Sales Tax Incentive
Implementing Sector:
State
State:
Tennessee
Eligible Storage Technologies:
Geothermal Electric, Solar Photovoltaics, Wind (All), Biomass, Wind (Small)
Website:
https://www.tn.gov/revenue/taxes/sales-and-use-tax.html
Incentive Amount:
100% of sales and use tax
Equipment Requirements:
Certified green energy production facility as defined in Tenn. Code Ann. Section 67-4-2004
Administrator:
Tennessee Department of Revenue
Applicable Sectors:
Commercial, Industrial
Start Date:
06/30/2010
Last Updated:
07/31/2020

Eligibility Criteria

EligibilitySectorsTechnologies
%100.0000
Commercial
Industrial
Geothermal Electric
Solar Photovoltaics
Wind (All)
Biomass
Wind (Small)

Summary

Tenn. Code Ann. Section 67-6-346 allows a taxpayer to take a credit, to apply for a refund of taxes paid, or to apply for authority to make tax-exempt purchases of machinery and equipment used to produce electricity in a certified green energy production facility. A certified green energy production facility is a facility certified by the Department of Environment and Conservation as producing electricity for use and consumption off the premises using clean energy technology. Clean energy technology is technology used to generate electricity from geothermal, hydrogen, solar, or wind sources.

A contractor who is installing pollution control or green energy machinery and equipment must file an application with the department and must attach a copy of the contract to its application. The taxpayer who hires a contractor must also file an application with the department. If both applications are approved, authority to purchase tax exempt will be extended to the contractor for the certified green energy production facility project described in the application. If taxes have been paid, the approved application will be used to support a refund or credit directly to the taxpayer.


Authorities

NameEnacted DateEffective DateExpired Date
Tenn. Code 67-6-3466/30/2010
Tenn. Code 67-4-2004 (9)6/30/2011