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Federal and state tax credits and local utility rebates make renewable energy and energy efficiency more affordable than ever.
The American Recovery and Reinvestment Act of 2009 provides substantial incentives for renewable energy and energy efficiency, including residential, commercial, and builder tax credits.
Not only that, but you may also qualify for additional state, local, or utility rebates and incentives. Please click on the city closest to you to find out more:
Residential
Solar Electric (PV) Systems
Federal Income Tax Credit
A federal income tax credit of 30% of the system cost is available for solar electric (PV) systems.
Solar Water Heating (Thermal) Systems
Federal Income Tax Credit
A federal income tax credit of 30% of the system cost is available for solar water heating (thermal) systems.
Wind Energy Systems
Federal Income Tax Credit
A federal income tax credit of 30% of the system cost is available for wind energy systems.
Energy Efficiency – Air Conditioning, Heating, Insulation, and Other Energy Efficiency Improvements
Federal Income Tax Credit
A federal income tax credit of up to $1,500 is available for qualified home energy efficiency improvements such as insulation, high-efficiency air conditioning systems, high-efficiency heat pumps, and more.
Commercial
Treasury Energy Grant
Commercial projects may opt to apply for a Treasury Energy Grant in lieu of the investment tax credit (ITC). This applies to equipment placed in service by December 31, 2010 or construction has begun by December 31, 2010 and is completed by December 31, 2013. The grant is paid out by the Treasury within 60 days of the project completion and application is filed.
Solar Electric (PV) Systems
Federal Business Tax Credit
A federal business tax credit of 30% of the net system cost is available for solar electric (PV) systems.
Solar Water Heating (Thermal) Systems
Federal Business Tax Credit
A federal tax credit of 30% of the system cost is available for solar water heating systems.
Wind Energy Systems
Federal Business Tax Credit
A federal tax credit of 30% of the system cost is available for wind energy systems with wind turbines less than 100 kW.
Solar Electric (PV), Solar Water Heating (Thermal) and Wind Energy Systems
Federal 5 Year Accelerated Depreciation Schedule
Under the federal Modified Accelerated Cost-Recovery System (MACRS), businesses may recover the cost of a solar electric, solar water heating, or wind energy system on an accelerated 5-year schedule. In 2008 and 2009 the above investments qualify for the 50% Bonus Depreciation schedule. The owner is entitled to deduct 50% of the adjusted basis of the property in the first year of operation. The remaining 50% of the adjusted basis of the property is depreciated over the ordinary depreciation schedule. The Depreciation Basis is calculated as the System Installation Price – (1/2) Federal Investment Tax Credit.
Builders
Energy Efficiency
Federal Tax Credit – Energy Efficient Homes
Tax credits of up to $2,000 are available to builders for construction of new energy-efficient homes.
Homes qualify for a $2,000 credit if they are certified to reduce energy consumption by 50% relative to the International Energy Conservation Code (IECC) standard and meet minimum efficiency standards established by the Department of Energy.
Building envelope component improvements must account for at least 20% of the reduction in energy consumption, but specific energy efficiency measures are not restricted.
Visit www.energystar.gov for more information on the federal tax credit guidelines. These statements are not intended to consitute tax or financial advice and are not intended to be used or relied upon to avoid penalties or tax consequences. Please consult your own tax and financial advisors.
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