The pass-through option in the Business Energy Tax Credit allows project owners to pass on the tax benefits of the credit onto a pass-through partner in exchange for a lump-sum cash payment.
But the BETC is undergoing an overhaul, and if the rules are adjusted, the cash payment could increase.
The BETC is one of the few tools Oregon has to recruit new businesses to the state, according to [Bob Repine, assistant director of ODOE’s energy incentives division]. But the program has come under fire in the last few months due to reports that its annual drain from the state’s general fund has ballooned from $10 million in 1979 to $168 million in 2009.
The Legislature asked ODOE to come up with a new formula for the pass-through that would require the pass-through partner to pay a larger cash sum to make up for the loss in tax revenues. ODOE was supposed to have a formula ready by Jan. 1, but Repine said Wednesday that none had been chosen.
Read the full story at the Daily Journal of Commerce.