Tax Credits for Solar, Wind, Renewable Energy & Energy Efficiency
Federal Economic Stimulus Energy Programs & Incentives


New Federal Incentives for Solar, Wind, Renewables & Energy Efficiency:
The Economic Stimulus Bill signed into law on February 17th, 2009 has resulted in several important new incentives and measures to stimulate energy efficiency and solar, wind and other renewable energy development, manufacturing, installation and operation in the United States.
 
Tax Credit Cap eliminated for Solar Electric (PV), Wind and other Energy Efficiency systems: The Residential Energy Efficient Property Credit is a nonrefundable energy tax credit to help individual taxpayers pay for qualified residential alternative energy equipment, such as solar electric (PV) systems, solar hot water heaters, geothermal heat pumps and wind turbines. The new law removes some of the previously imposed maximum amounts and allows for a credit equal to 30 percent of the cost of qualified property.
 
"Subsidized energy financing" removed from Investment tax Credit (ITC) calculations. The Stimulus Bill (of January 2008) states: For purposes of determining the amount of expenditures made by any individual with respect to any dwelling unit, there shall not be taken into account expenditures which are made from subsidized energy financing (as defined in section 48 (a)(4)(C)*). And, The term "subsidized energy financing" (in section 48 (a)(4)(C)) means financing provided under a Federal, State, or local program a principal purpose of which is to provide subsidized financing for projects designated to conserve or produce energy.
 
Note: If your Rebate comes from a Utility, you may need to subtract the rebate amount from the system cost to determine the cost basis for the Investment Tax Credit.
Source EnergyStar.gov: I am eligible for both a rebate and a tax credit - can I take both?
 
Tax Credit Cap eliminated for Solar Water heating systems: The $2,000 cap on the 30% Federal Tax Credit for solar water heating systems has been removed. Solar water heating systems, other than those for pools or spas, are now eligible for a full 30% tax credit against the solar system's cost.
 
Our Solar & Wind Estimator includes these solar and wind incentives and many others. Use it to calculate the cost savings you can realize now by installing a solar or wind energy system of your own.
 
Find » State & Local Solar & Wind Incentives
TIP: Use your local solar, wind or energy professional to help you understand the full spectrum of tax credits, deductions, purchase, energy production incentives and special utility rates that may be available to you. They are experts and on-top of the latest developments:
HELPFUL PDF's & Links
Energy Provisions of the American Recovery and Reinvestment Act of 2009 (ARRA)
Energy-Saving Steps This Year May Result in Tax Savings Next Year
IRS Form 5695 & Instructions: Residential Energy Credits
The Energy Star program also has information related to » tax credits for Consumers (Home Improvements, Cars, Solar Energy Systems, Fuel Cells), Tax Credits for Home Builders, Tax Credits for Appliance Manufacturers, and Tax Deductions for Commercial Buildings
There are also several provisions designed to help ease financing of systems, promote training and job creation, manufacturing investments.
There are many state, federal and local incentives available to help pay for the cost of installing renewable energy systems. Here is a Database of Grants and Rebates.
To help homeowners take advantage of the energy efficiency tax credits, the Alliance to Save Energy (ASE) has created a special tax credits Web site. See the ASE Energy Efficiency Tax Credits Web site.

 

EFile e-file taxes tax 1040a 1040ez 1040-a 1040-ez IRS

Taxhead.com is a solar-powered, green business offering an easy way to prepare and eFile your taxes online