Function

• Corporations can apply the investment tax credit to cover the expenses of installing renewable energy systems. The credit covers 30 percent of the costs for installing solar, small wind and fuel cell systems. The credit covers 10 percent of the costs for geothermal, microturbines and combined heat and power systems. Some of the energies have caps. The IRS limits fuel cells to $1,500 per .5 kilowatts of capacity installed. Microturbines have caps of $200 per kilowatt of capacity.
  
  

Eligibility

• The IRS gives the investment tax credit to commercial, industrial, agricultural and utility businesses. Energy systems must be within or surpass energy outputs in order for the installation to be eligible. Small turbines need to produce 100 kilowatts or less, microturbines need to be two megawatts or less, combined heat and power systems need to be 50 megawatts or less and fuel cells need to be .5 kilowatts or greater.
  
  

Grant

• The American Recovery and Reinvestment Act of 2009 gave tax credit recipients the chance to substitute the IRS break for a grant. The grants, which come from the U.S. Department of the Treasury, are available to businesses that began installing renewable energy systems before Dec. 31, 2010. The recovery act was a second expansion on the tax credit in recent years. The federal government in 2008 extended the credit until 2016 with the Energy Improvement and Extension Act. The act also added the 10 percent credits for geothermal, microturbine and combined heat and power systems.
  
  

Other Incentives

• The federal government awards numerous other tax credits and other incentives for converting to renewable energy. Along with building upgrades, the government also issues incentives for using fuel-efficient and hybrid vehicles, such as a credit worth up to $7,500 for using plug-vehicles. One of the most prominent programs is Energy Star, which is a partnership between the U.S. Department of Energy and Environmental Protection Agency. The program gives credits that cover up to 30 percent of the costs for installing renewable energy systems in homes, but it also applies to businesses. Along with offering strategies for how companies can upgrade and improve their energy systems, Energy Star also has the Energy Star Leaders program, which is a way to distinguish energy-efficient businesses.