RESIDENTIAL TAX INCENTIVES AND CREDITS
(Page last updated February 10, 2010)
 
Disclaimer:  Regardless of what you read here or anywhere else, it is essential that you consult with a knowledgeable CPA who is specifically versed with the applicable tax laws to verify what incentives will apply directly to your project.  Creative Solar USA is not responsible for any use or mis-use of the information provided below.  Creative Solar USA, Inc. disclaims all warranties, express or implied, with regard to the following, which is provided for informational purposes only.
 
FEDERAL
 
The federal tax incentives for solar electric, solar thermal, wind turbines and geothermal were increased and have been renewed through 12/31/16.  This is great news!  While these incentives have gone through various changes in recent years, below describes their current status.
 
Solar Electric (PV), Solar Thermal and Geothermal Heat Pumps
For any residential PV, solar thermal or geothermal systems placed in service on or after January 1, 2009, the federal tax incentive is now 30% with no maximum!  
Please note: Solar swimming pool and hot tub heaters are not included.
 
Wind Power
The legislation has been updated to the same as solar thermal and solar electric.  Any wind turbines placed in service will also receive the 30% incentive. 

Excess credit may be carried forward to the next tax year.
 
Furthermore, there are positive caveats to these tax credits!  If you have a home-based business, then your tax credit may increase with the percentage of your home and electrical bills that are devoted to business use.  Please check with your CPA for more information.
 
Lastly, any rebates you happen to receive from your utility company does reduce the tax basis from which you may deduct the 30% above.  

 
GEORGIA
 
The state tax credit is effective July 1, 2008 (HB 670) and is up to 35% of your installation.  Georgia, too, has listed maximum limitations, and these are as follows.  For PV, active space heating or wind energy systems, the cap is $10,500.  For solar thermal (hot water), the cap is $2,500.  For Energy star-certified geothermal heat pumps, the maximum is $2,000.  Excess tax credit may be carried forward for a maximum of 5 years.
 
Keep in mind that there is a limited amount of funds available for this program, and residential applicants "compete" with commercial entities for this incentive.  What is meant by this is all monies for residential or commercial tax incentives come from the same fund.  Lastly, these incentives are awarded on a first-come, first-served basis.
 
If you have a home-based business, it is likely that you'll be able to receive a greater tax credit in line with the percentage of your home that is utilized for business purposes.  See your CPA for confirmation and more details.
 
Note: The state tax incentives discussed here apply for the state of Georgia only.  To see what incentives apply for your state, please visit the DSIRE web site and click on your home state to learn more.  [DSIRE = Database of State Incentives for Renewables & Efficiency]


 

UTILITY COMPANY REBATES AND/OR LOAN PROGRAMS

While not all utility companies offer incentives to those who install renewable energy, many do and more companies are changing their policies to expand coverage to this arena.  
 
Scroll to the bottom of this page to see a short list of utility companies, or better yet, call your particular utility company and ask them directly what is available.  You might need to go beyond the customer service representative to a manager to get this information.  Keep asking!  If they don't have a program, ask them to consider instituting one.  You might be surprised what happens.