FOR IMMEDIATE RELEASE
February 2, 2009        

Contact:
Lou Torres
(503) 378-3637
(800) 221-8035


SALEM— As part of a regular review of Oregon’s Business and Residential Energy Tax Credit (BETC and RETC) programs, the Oregon Department of Energy released a report today that showed the program delivered a nearly 3-to-1 return on the state’s investment, creating more than $616 million in economic investments and wages, and more than 1,700 jobs in the last two years.
 
Completed by Portland-based ECONorthwest, the independent study also shows that the programs helped Oregonians save nearly $300 million in energy costs.  Additional benefits from BETC and RETC include more than $22 million in net tax revenue for state and local governments and reductions in carbon dioxide of nearly 2.4 million tons.  The study covered 2007 and the first ten months of 2008.
 
“This thorough analysis shows that the tax credits are not only encouraging renewable energy and conservation projects, but they are also creating hundreds of new jobs each year and increasing tax revenues for state and local government,” said Oregon Department of Energy Director, Michael Grainey.  “Oregonians are getting an excellent return on their investment in new energy and energy savings.”
 
The combined total of BETC and RETC tax credits approved during the two-year period was $244.2 million.  Oregonians received over 77,000 RETC tax credits for high efficiency appliances, heating and air conditioning systems, solar systems and hybrid cars.  Around 3,800 BETC tax credits were issued for energy conservation and recycling projects, renewable energy resources and less-polluting transportation fuels.
 
The study examined the net impacts of the tax credits to Oregon as well as spending by business owners and residents taking advantage of these tax credits.   The net economic impacts reflect the benefits over and above the cost of the tax credits to state income.
 
“With the current economic downturn, programs that invest in energy efficiency and renewable energy are going to play an even more critical role in helping to create jobs and lead us out of this recession,” Grainey added.   “With the help of the BETC, we’ve been able to complete many valuable energy projects, attract and construct solar renewable manufacturing facilities and build large wind facilities in Oregon, making us a leader in solar and wind development.”

Grainey emphasized that tax credits can make important environmental contributions, as well. “By helping to reduce fossil fuels, tax credits help reduce pollution including greenhouse gases.”

The Department of Energy offers tax credits to Oregon residents and businesses that invest in energy efficiency, conservation and renewable energy projects.  Residential tax credits are available for high-efficiency appliances, heating systems and qualifying services.  Businesses can receive tax credits for 35 percent of eligible costs for conservation projects and 50 percent for renewable energy projects.  The renewable energy tax credit was changed from 35 to 50 percent in 2007 by the Oregon Legislature to stimulate renewable energy development.  As a result, the number of BETC applications more than doubled between 2006 and 2008 from 2,101 to 4,244.
 
A previous study on the tax credit programs by ECONorthwest showed that the programs created over 1,200 new jobs, created Oregon wages of $18.6 million and contributed over $140 million to Oregon’s economy in 2006.
 
The net impacts of the BETC and RETC for 2007-8:
 
    * Net tax revenues for state and local government increased by $22.4 million
    * 1,706 new jobs were created
    * Carbon dioxide emissions were reduced by 2.4 million tons
    * Energy costs decreased by $297.2 million
    * Output in Oregon’s economy increased by $575.7 million*
    * Oregon wages increased by $41.1 million
 
*Note:  Output  is the value of production by industries that includes the value of sales, purchases by businesses of goods and services, as well as the total value added during production.
 
To view the new study, please go to http://oregon.gov/ENERGY/CONS/BUS/BETC.shtml
 
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The Oregon Department of Energy provides tax credits, loans, technical assistance and energy information for homes, businesses, manufacturing, farms, ranches, schools and government. For more information, call toll-free 1-800-221-8035 or check the Web site at www.oregon.gov/energy