Are there Rebates and Tax Savings for Renewable Energy?
Yes. Increasing the return on investment
at the quickest possible rate can be greatly affected if you take
advantage of the generous rebates offered by federal and even state
There is a tax credit available. Tax credits are different than tax
deductions. Tax deductions are ways to reduce your taxable income, and
only by that do you save money. For instance, if you made $50,000 last
year and you spent $3,400 of that in a renewable energy investment, you
would only pay taxes on $46,600.
With a tax credit, the government basically hands you a wad of
cash. If you spent $3,400 on a renewable energy investment, the
government would pay you back 30% of your investment. This means that
you would basically get a check for $1,020 (or they would take that off
any taxes owed). Thus, your actual investment would be $2,380 rather
than $3,400! There are some conditions, so please consult your tax
professional for more details on this tax credit. Click
here for the IRS form.
The Federal Production Tax (PTC) credit is for the purposes of
providing wind generators with an inflation-adjusted tax credit of 2.0
cents per Kilowatt hour (KWH) of power generation. The tax credit
expired in 2008, however the credit has been extended a number of times
and has always been retroactive to the prior expiration date.
There is also a provision for being able to accelerate the
depreciation of some wind energy investments when calculating your tax
Some states are more friendly than others when it comes to giving
deductions, rebates and credits.
A valuable resource for the latest information on various incentives
can be found at http://www.dsireusa.org/
. They keep a running database of the latest information on this
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