New Residential Renewable Energy Tax Credit 2009
Incentive Type: Personal Tax Credit
Applicable Sectors: Residential
Eligible: Photovoltaic (Solar Power), Solar Water Heat, Wind, Fuel Cells, Geothermal Heat, Other solar Technologies
Maximum Incentive: Solar Electric: $2,000 for systems placed in service on or before 12/31/2008;
30% with no maximum limit beginning in 2009.
Solar Water heating is still capped at $2,000.
If your tax credit is more than your taxes this year, then it can be carried forward to the next tax year!
Solar power just became more affordable. For a typical residential starter system (1200 watts), this 30% tax credit will be upwards of $5,000, not capped at $2,000 like it used to be. That means Solar Power on your home is now at least $3,000 more affordable.
A larger system (3600 watts) could easily be eligible for $9,000 tax incentive. If you typically owe a large amount of taxes, then you could use this larger tax credit, now $7,000 more than the older federal incentive.
Check the D.S.I.R.E. web page for updates on incentives ———->
Copyright Brothers Electric & Solar © 1978-2010
Established by the Energy Policy Act of 2005, the federal tax credit for residential energy property initially applied to solar electric systems, solar water heating systems and fuel cells. The Energy Improvement and Extension Act of 2008 (H.R. 1424, Division B) extended the tax credit to small wind energy systems and geothermal heat pumps, effective January 1, 2008. Other key revisions included an eight-year extension of the credit to December 31, 2016, the ability to take the credit against the alternative minimum tax, and the removal of the $2,000 credit limit for solar electric systems beginning in 2009.
· Maximum credit of $2,000 for systems placed in service from January 1, 2006, through December 31, 2008.
· No maximum credit limit for systems placed in service from January 1, 2009, through December 31, 2016. The home served by the system does not have to be the taxpayer’s principal residence.