Solar Rebates | 26% Tax Credit
Solar Rebates | 26% Tax Credit.
The American Recovery Re-investment Act of 2009
On February 17, 2009 President Obama signed the American Recovery and Re-investment Act of 2009 into law. With a significant emphasis on renewable energy technology namely Wind and Solar, employment and job expansion, the bill improved upon the 2008 tax credit by removing “cost caps”. The tax change allows consumers and small businesses to take a 26% tax credit off the installed cost of a Solar installation. To a home or business purchasing a solar power system, the re-investment act will double their credit. Businesses will also have the option of receiving their credit in the form of a cash grant. Click here to learn more about solar power lending.
Renewable Energy Facts – Click on Questions to See Answers.
Your Title Goes HereWhat does the stimulus package mean to Home Owners?
The entire cost of a renewable energy system and installation is reduced by 26 percent provided you have a tax liability over the course of two years. Learn more about residential tax credits click here!
What does the stimulus package mean to Business Owners?
The entire cost of a renewable energy system and installation is reduced by 26 percent provided you have a tax liability over the course of two years. Learn more about farm, ranch or business tax credits click here!
Can someone who already owned renewable energy claim the tax credit?
If you purchased in 2008, you qualify for the federal-level tax credit, passed as part of the October 2008 bailout legislation, up to $2,400 per wind turbine with a cap of $4000. If you purchased in 2008 but your dealer did not install it until 2009, ask your dealer to write a letter indicating that the wind turbine was not “commissioned” became operational 2009, you would qualify for the 30 percent tax incentive in your 2009 filing but could not take it off your 2008 taxes.
How does a tax credit work?
Typically, a tax credit is money that you can deduct from any money owed to the federal government at tax time (tax liability). The small wind tax credit can be carried over two years after the product is installed. You can only claim the credit based on what you would owe in taxes -“your tax liability after two years.” If you do not normally receive a refund, you may want to consult with a tax attorney to understand better what opportunities are available to you.
How do I claim the credit?
You will be required to file the long form and itemize your deductions. The IRS form 5695 must be completed and filed with your taxes. The current form does not reflect the changes to the most recent legislation – download here
I heard I can get cash back rather than a tax credit - how does that work?
Businesses can apply for a grant from the US treasury and rather than a tax credit, receive a cash grant. The details are still being worked out but should be in place by April or May. Keep in touch with your dealer or the manufacturer for more information
What if I want to purchase and install more than one renewable energy solution?
The stimulus package allows for a 26 percent tax credit on the total cost of multiple units. There is no cap on the 26 percent tax credit. Businesses may qualify for a grant from the treasury in lieu of a tax credit.