Solar Tax Credits Help Ease the Costs of Solar Power System Installations
If you're thinking of adding solar power to your total energy solution, you should know that there are solar tax credits available for almost all 50 states. In most instances these tax credits are applied to your income tax at the time of filing.
Federal solar tax credits are also available. Currently, the federal incentive is 30 percent of the total cost of installation. As an example, if you install a solar power system for your residential dwelling and the cost is $30,000, the tax credit is 30 percent of that amount, or $9,000. This reduces the cost of your installation to $21,000. Add to that the fact that you'll be paying less for your utility costs, and it makes more and more sense to explore renewable energy options.
To make these incentives even more attractive, the federal solar tax credit is a dollar for dollar reduction in your taxes owed. In other words, if the 30 percent of your tax break amounts to $5,000, you get to take $5,000 off the taxes you owe, not just reduce your taxable income.
Investigate your state solar tax credits and rebates to save even more money. For instance, the state of California solar tax credit leads the way when it comes to incentives and support for renewable energy for both commercial and residential systems. Local utility companies also offer rebates for installing solar energy systems. In some instances you can combine the Federal and state solar power tax credits to save even more money.
Be aware that there are some restrictions regarding qualifications for some of these programs. The solar energy systems that you're installing must be done on existing homes that are your primary residence. Additionally, the energy tax credit does not apply to new construction. At the present time, however, there is no maximum amount on the credit you can receive as long as you meet all the requirements.
Some states offer property tax exemptions if you've installed solar energy systems in your primary residence, so be sure to check your local regulations. In addition, some electric companies offer what's called net-metering, which allows you a way to sell excess electricity back to the power company.
If you're thinking of adding a renewable energy system to your residence, be sure to check out all the solar power tax credits that are available today. When combining the tax savings and the reduced utility bills you will enjoy once your solar energy system is in place, it's never made more sense to begin reducing your carbon footprint.
30% Federal Solar and Renewables Tax Credit for 2011 and beyond!
Resources
DSIRE Residential Renewable Energy Tax Credit
Tax Credit FAQs
The Economic Stabilization Act of 2008 (H.R. 1424) includes the long-awaited extension of the solar investment tax credit.
Not only does H.R. 1424 improve the federal solar tax credit from a flat $2000 to 30% of total system and installation costs, it also extends the tax incentive for the next 8 years. But it gets better: H.R. 1424 extends tax incentives to utility companies and commercial installations!
AVOID THE RUSH ON SOLAR POWER SYSTEMS!
This means that the majority of business and residential investments will benefit from a 30% discount paid for by the government! We expect a substantial increase in the number of solar and wind power orders for residential and commercial projects. If you have been considering solar power as a solution to your energy needs, YOU MUST HURRY! We are sure to experience a rush on solar panels and supplies could become limited from now until well into 2012. The law took effect on January 1, 2009 and will continue until December 31, 2016. Example of Residential Solar Power Savings
Hightlights of the Federal Tax Credit Program
- Extends for the next 8 years a 30% tax credit for residential and commercial solar installations
- Eliminate the flat $2,000 cap for residential solar electric installations, replacing it with a 30% tax credit effective for qualified renewable energy systems installed after December 31, 2008.
- Eliminates the prohibition on utilities from benefiting from the credit
- Allows Alternative Minimum Tax (AMT) filers, both businesses and individuals, to take the credit
- Authorizes $800 million for clean energy bonds for renewable energy generating facilities, including solar
This is the legislation and the incentive many have been waiting for! START PLANNING NOW FOR 2011 AND ORDER EARLY!
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