Energy Conversion and Thermal Efficiency Sales Tax Exemption
Administered by Ohio Department of Taxation
This exemption primarily benefits commercial and industrial facilities, not residential properties, so most homeowners cannot directly use it. If you operate an industrial or commercial business and install qualifying energy conversion or thermal efficiency systems, you may qualify for sales tax exemption on the equipment—contact Ohio's Department of Taxation and submit Form ECF (Energy and Solid Waste Energy Conversion and Thermal Efficiency Improvement Facility) to apply.
You can help commercial and industrial customers reduce equipment costs by identifying qualifying energy conversion, solid waste conversion, or thermal efficiency improvement systems that are eligible for Ohio's sales and use tax exemption. The customer must obtain an Exempt Facilities Certificate from the Department of Taxation (with approval from the Development Services Agency) before purchase; once approved, the equipment is exempt from Ohio sales and use tax, making the project more cost-effective for your client.
This sales tax exemption applies to tangible personal property in energy conversion and thermal efficiency facilities for commercial and industrial sectors, covering technologies such as geothermal, solar thermal, wind, biomass, and combined heat and power systems installed after December 31, 1974. Eligible facilities must convert energy sources, process solid waste from industrial operations, or recover waste heat/steam from power generation or industrial processes. Applicants submit Form ECF to the Department of Taxation for an Exempt Facilities Certificate (requiring Development Services Agency approval); once certified, property is exempt from state sales and use tax, benefiting both owned and leased equipment.
Program details
- Program ID
- 77
- Last updated
- 12/12/2024
Eligibility
- Sectors
- commercial industrial
- Technologies
- geothermal electric solar thermal process heat wind (all) biomass hydroelectric municipal solid waste combined heat & power fuel cells using non-renewable fuels landfill gas anaerobic digestion fuel cells using renewable fuels microturbines heat recovery
Program summary
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." Exempt facilities include both property owned and leased by the holder of the exempt facility certificate or certificate recipient.
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 web site (form number ECF).
Contact the Department of Taxation for more information.
Contact & resources
- Contact email
- john_werkman@tax.state.oh.us
- Additional resources
Please verify current program details with the administering agency before making any financial decisions.
