Credits established by the federal and some state governments to assist the development of the alternative energy industry. From 1978 to 1985, the federal government offered tax credits for alternative energy equipment. The federal government offered a 40 percent tax credit on residential applications and a 10–15 percent credit on commercial and industrial applications.
A form of indirect public financing used in Minnesota, Oregon, and Washington, D.C., meant to encourage small individual campaign contributions and, in some cases, compliance with voluntary spending limits. For example, Oregon offers a tax credit, in the form a refund, of up to $50 for contributions made to political parties, groups supporting or opposing ballot measures, and candidates who comply with voluntary spending limits.