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How to Help Finance Your Renewable Energy Projects - updated 5/1/2011
Renewable energy incentives have been extended as part of the 700 billion dollar bail-out package.
This removed caps on PV systems and provides the following;
FEDERAL TAX CREDITS
Federal Incentives for Solar, Wind, Renewables & Energy Efficiency:
The Economic Stimulus Bill 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.
MACRS Bonus Depreciation now 100%:
In December 2010 the provision for bonus depreciation was amended and extended yet again by The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (H.R. 4853). Under these amendments, eligible property placed in service after September 8, 2010 and before January 1, 2012 qualifies for 100% first-year bonus depreciation. For 2012, bonus depreciation is still available, but the allowable deduction reverts from 100% to 50% of the eligible basis. To qualify for bonus depreciation, a project must satisfy certain criteria: See DSIREUSA.orgfor residential photovoltaic and solar domestic hot water, homeowners can receive a tax rebate of up to 30% of the system cost, with the total rebate capped for hotwater at $2000. For commercial photovoltaic systems and solar domestic hot water systems, a rebate is available for 30% of the system, with no cap on the total rebate. There are new federal rebates available for wind, see below.
Please check this link for the most accurate information: Federal Tax Credits for Energy Efficiency
Consumers who purchase and install specific products, such as energy-efficient windows, insulation, doors, roofs, and heating and cooling equipment in existing homes can receive a tax credit for 30% of the cost, up to $1,500, for improvements "placed in service" starting January 1, 2009, through December 31, 2010. See EnergyStar.gov
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.
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.
Consumers who install solar energy systems (including solar water heating and solar electric systems), small wind systems, geothermal heat pumps, and residential fuel cell and microturbine systems - all photovoltaic systems must provide electricity for the residence, and must meet applicable fire and electrical code requirement. Are eligable for a tax credit of 30% of cost. After January 1, 2009 and before December 31, 2016.
Small Wind Energy Systems
Tax credits are available to homeowners who install residential small wind turbine systems. The credits are available for systems placed in service from January 1, 2008 to December 31, 2016. The tax credit is for 30% of the cost of the system, up to $500 for each half kilowatt of capacity with an overall maximum of $4,000.
STATE TAX INCENTIVES
The state rebate for Solar Thermal systems is set at $1.50 per 100 BTU/day for solar hot water systems. Vermont gives a 100% sales tax exemption for the purchase of a renewable energy system smaller than 250kW. The DSIRE website will give you access to Vermont state solar energy incentives as well as the state’s rules, regulations, and policies related to renewable energy.
For small PV systems, the State rebate is $1.00/kW up to 10kW
Green Mountain Power offers a special incentive for its customers who install a PV system. GMP pays an additional 6 cents per Kilowatt hour for every kWh generated by your system. This makes a PV system much more financially attractive and significantly lowers the pay back period for the system.
If you are a Green Mountian Power customer, you can view the available weatherization rebates.
Vermont has an Investment Tax Credit for Solar Energy installed on Commercial Property.
The 10% investment tax credit, otherwise known as the business energy tax credit, has been permanently extended as part of the passage of the Energy Policy Act of 1992.
Anyone who invests in or purchases qualified solar energy property can take the credit -- up to 10% of the investment or purchase and installation amount -- when income tax forms are filed. Only commercial entities can take the credit.
Vermonters also benefit from a the Solar & Small Wind Incentive Program, solar domestic hot water rebates are given at a rate of $1.75 per 100BTU's based on SRCC ratings, capped at $8,750. For multi-family or low-income homes, the rate becomes $3.50 per 100BTU's. For commercial systems, projects receive up to 50% of project costs, capped at $250,000. For wind systems in VT, rebates are capped at $12,500.
Finally there is a state tax exemption for Solar Water Heat, Solar Thermal Electric, Photovoltaics, Landfill Gas, Wind, Biomass, CHP/Cogeneration, Anaerobic Digestion and Fuel Cells using Renewable Fuels - in Commercial, Residential, General Public/Consumer, Agricultural situations. This is a full 100% tax exemption, which was 6% as of Oct 2008.
Automobile Tax Credits
Hybrid Gas-Electric and Alternative Fuel Vehicles
Individuals and businesses who buy or lease a new hybrid gas-electric car or truck are eligible for an income tax credit for vehicles “placed in service” starting January 1, 2006, and purchased on or before December 31, 2010. The amount of the credit depends on the fuel economy, the weight of the vehicle, and whether the tax credit has been or is being phased out. Hybrid vehicles that use less gasoline than the average vehicle of similar weight and that meet an emissions standard qualify for the credit.
This tax credit will be phased out for each manufacturer once that company has sold 60,000 eligible vehicles. At that point, the tax credit for each company’s vehicles will be gradually reduced over the course fifteen months. See the IRS's Summary of the Credit for Qualified Hybrid Vehicles for information on the status of specific vehicle eligibility.
Alternative-fuel vehicles, diesel vehicles with advanced lean-burn technologies, and fuel-cell vehicles are also eligible for tax credits. See the IRS summary of credits available for Alternative Motor Vehicles.
Plug-In Electric Vehicles
Plug-in electric vehicles also qualify for a tax credit starting January 1, 2010. The credit for passenger vehicles and light trucks ranges from $2,500 to $7,500, depending on battery capacity. The first 200,000 vehicles sold by each manufacturer are eligible for the full tax credit; the credit will then phase out over a year.
Plug-In Hybrid Conversion Kits
Hybrid vehicle owners who purchase a qualified plug-in hybrid conversion kit are eligible for a 10% credit, capped at $4,000, through 2011.
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