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.
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