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Energy Conversion and Thermal Efficiency Sales Tax Exemption

Eligibility 
Commercial
Industrial
Savings Category 
Fuel Cells
Fuel Cells using Renewable Fuels
Photovoltaics
Solar Water Heat
Maximum Rebate 

None

Program Info
State 
Ohio
Program Type 
Sales Tax Incentive
Rebate Amount 

100% exemption

Provider 
Ohio Department of Taxation

Ohio may provide a sales and use tax exemption for certain tangible personal property used in energy conversion, solid waste energy conversion, or thermal efficiency improvement facilities designed, constructed, or installed after December 31, 1974.

Qualifying energy conversion facilities are those that are used for the primary purpose of converting natural gas or fuel oil to an alternate fuel or power source excluding propane, butane, naphtha, fuel oil, or natural gas. Solid waste conversion facilities include those that convert solid or semi-solid waste from industrial operations including public utilities, commercial distribution, research, agricultural, and community operations, and including garbage, street dirt, and debris. Thermal efficiency improvement is defined as "the recovery and use of waste heat or waste steam produced incidental to electric power generation, industrial process heat generation, lighting refrigeration, or space heating."

Facilities must apply for an Exempt Facilities Certificate from the Department of Taxation, which must also be approved by the Development Services Agency. Upon receipt of certification from the tax commissioner, such property is exempt from Ohio's sales and use tax. The application for Energy and Solid Waste Energy Conversion and Thermal Efficiency Improvement Facility is found at on the Ohio Department of Taxation [http://tax.ohio.gov/Forms.aspx web site] (form number ECF).

See the [http://tax.ohio.gov/faqs/index.stm Department of Taxation Frequently Asked Questions] for general comments on which sales are exempt from sales tax in the state of Ohio. Contact the Department of Taxation for more information.

''**It should be noted, also as part of Ohio's Tax Reform, that the corporate franchise tax was phased-out by 2010 for most taxpayers. ''