Do You Qualify for Idaho’s 3% Waste Oil Heater Investment Tax Credit?

By Thomas Brown

Discover Idaho’s Tax Credit That May Offset the Cost of Waste Oil Technology

Regardless of location or the amount of waste oil a business or individual produces, every Idaho resident must comply with federal and state regulations when it comes to waste oil management. From storing waste oil to properly disposing of the substance, understanding how to make the most of used oil management can help organizations plan accordingly.

Offsetting the Costs of Waste Oil Heating and Cooling Systems

Idaho doesn’t have incentive programs in place for waste oil recycling or recycling equipment, but it does offer businesses an opportunity to earn a 3% investment tax credit for purchasing new depreciable equipment used in the state. The investment tax covers depreciable assets, including equipment and machinery, other tangible property, and petroleum storage facilities. Talk to a local tax professional to see if a high-efficiency waste oil heating and cooling system qualifies for credit. Combined with the energy savings associated with high efficiency technology, the credit may make investing in alternative energy more appealing.

Idaho State Regulations Regarding Waste Oil

Like most states, Idaho’s used oil laws mimic the federal EPA standards for managing used oil. Every oil generator in the state from the DIY car owner to trucking companies must adhere to the same set of standards including storing used oil in watertight containers, maintaining the condition of all waste oil containers, and effectively managing any spills that occur. Label all containers filled with waste oil as such, and take steps to minimize waste.

Even one quart of oil can contaminate 250,000 gallons of potable water, and used oil containing hazardous properties can cause serious health problems for humans. When organizations and individuals fail to comply with the existing standards for oil management, they may face state and federal penalties and suffer from unexpected health outcomes.

Using Waste Oil as Fuel in Idaho

Many residents use waste oil as a source of fuel for energy recovery in the state. As long as waste oil burning practices comply with applicable regulations, waste oil heating and cooling systems can provide a free source of energy and reduce the costs associated with legal disposal methods.

High-efficiency waste oil burning systems allow users to enjoy a BTU output without worrying about environmental pollution. The system burns off all contaminants and minimizes the number of byproducts released into the air during burning. Owners of these systems enjoy saving on energy bills during cold winters and can better maintain the comfort level of work bays and garages throughout the year.

Benefits of Energy Recovery Through Waste Oil Burners

Organizations that retrofit their service departments and garages with high-efficiency used oil burners can take advantage of a free resource at their disposal. As the price of oil fluctuates, many recycling organizations are starting to charge for their services. When companies can reuse the waste oil they generate, they can eliminate the hassle of scheduling pick up services. Cutting-edge systems also deliver impressive heating and cooling results for 9,000–10,000-ft² spaces. Compared to conventional annual heating costs, a waste oil burning system can save businesses thousands of dollars over the years.

Sources:

http://www.deq.idaho.gov/waste-mgmt-remediation/hazardous-waste/used-oil/

http://www.deq.idaho.gov/media/532485-burners_of_off_specification_used_oil.pdf

https://tax.idaho.gov/forms/EFO00030_05-10-2013.pdf