Renewable energy credits are relatively new in most states. They have been authorized
by states to encourage the development of renewable sources, primarily solar and wind.
To obtain state renewable energy tax credits a prospective buyer typically must invest
in a partnership which either owns directly or indirectly in a entity developing renewable
energy.
Georgia is authorized to issue a small number of solar energy credits each year under
the Income Tax Credit For Clean Air Property. The State Tax Credit Exchange has
been engaged to place credits from the largest ground mounted solar farm developed in
Georgia.
In Georgia, excess credits may be carried forward to the succeeding year. The credits
may be elected to apply against any taxpayer’s Georgia income tax liability, Georgia
withholding taxes, and income or premium tax liabilities for insurance companies.
When the taxpayer creating the credits is a pass-through entity and has no income tax
liability of its own, the tax credits pass to its members, shareholders, or partners based on
the year ending profit/loss percentage.