Tax Credits and Exemptions

In some countries and provinces sales taxes are controlled by the municipalities. These municipalities then have it in their control to exempt renewable energy equipment and services from taxation. In the same sense, some taxes collected from businesses could be lowered or eliminated if these buisnesses manufacture, generate, install, lease property for production and distribution, or otherwise aid in the greater uptake of renewable energy sources in the local jurisdiction.

In terms of property taxes, a local government has a number of options. These include: making properties that have a renewable energy system installed exempt from a property tax assessment, provide tax credits that will offset property taxes, or ensure that the value of a property with a renewable energy system does not exceed that of a conventional system.