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S T A T E & L O C A L T A X S T R A T E G I E S : B U S I N E S S I N C E N T I V E S A N D T A X C R E D I T S

In exchange, the pass-through partner makes a lump-sum

payment to the project owner. The pass-through partner

then claims the BETC against its own state tax liability.

The current pass-through payment rate (set by the DOE)

is 67 percent of face value for projects with a preliminary

certification before January 1, 2010, and 73.6 percent of face

value for projects with a preliminary certification thereafter.

A Significant Opportunity for Pass-Through PartnersBeyond its potential to deliver a high internal return rate,

there are a number of reasons that make a BETC an

attractive purchase:

• It can help diversify your investment portfolio.

• It gives you the opportunity to invest in renewable-energy projects.

• It reduces your total state income tax liability.

• It can lower your effective state tax rate.

Note that a BETC cannot be revoked once purchased. In

addition, the amount paid for a BETC is generally deducted

as state taxes over a five-year period.

Contact UsMoss Adams has the expertise to help you turn state and

local taxes into an opportunity for real savings. Discover how

we can help you benefit from this and other tax incentives. To

learn more, visit www.mossadams.com/services/taxservices/

salt. Or contact:

Robert A. O’Neill, Partner

(503) 478-2339

rob.oneill@mossadams.com

Businesses and organizations investing in energy-conservation, recycling, pollution-reduction, or renewable-energy projects are taking advantage of Oregon’s Business Energy Tax Credit (BETC). Yet in many cases these project owners lack Oregon tax liability, leaving them unable to reap the BETC’s full benefit in a timely manner.

Does your entity have Oregon tax liability? If so, you can

now purchase a project owner’s BETC—at a considerable

discount—and use it to help offset your own tax costs and

take advantage of an internal return rate that can exceed

20 percent.

Moss Adams LLP can help you leverage this opportunity,

known as the Pass-Through Option. We work with a number

of project owners that are interested in transferring their

BETCs (preferably in increments of $100,000), and we can

act as a qualified intermediary between you, the project

owner, and the Oregon Department of Energy (DOE) to find a

project that meets your Oregon tax needs. There’s no charge

to you for our assistance in helping you locate and secure a

suitable BETC.

About the BETCCreated in 1980 and expanded in subsequent years, the BETC

is an incentive program designed to encourage business

owners and organizations to initiate energy projects in return

for a tax credit of 35 percent. Certain projects—such as

those involving high-efficiency combined heat and power,

renewable energy resource generation, or renewable energy

resource equipment manufacturing facilities—are eligible for

a 50 percent credit. The BETC is taken over five years, with

an eight-year carryforward.

The Pass-Through OptionEntities with or without Oregon tax liability can “pass

through” their BETC for an eligible energy project to a

“partner”: a business or individual with Oregon tax liability.

Oregon Business Energy Tax Credit Pass-Through Option

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