Tax & Rebate Incentives

Tx Wind Solar - Tax incentives for wind and solar energy

THE 2009 RECOVERY AND REINVESTMENT ACT SIGNIFICANTLY IMPROVES TAX CREDITS FOR REWABLE ENERGY!

Under this new program home owners are entitled to take a 30 percent tax credit on residental wind, solar and hybrid renewable energy systems installed after 12/31/2008. This tax credit may be used over two consecutive years if a homeowner's tax liability is too small in year one.

Businesses are also entitled to a 30 percent Investment Tax Credit (ITC) for investing in renewable energy. Under the new program, business owners may opt to take a Federal Grant in lieu of the ITC for a cash contribution toward the cost of the system up to 30 percent of the total investment. In addition business owners are eligible to take accelerated depreciation of up to 50 percent of the cost of renewable energy in the first year of investment.

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The American Recovery and Reinvestment Act of 2009

Effects on Residential, Commercial, and Utility PV Installations

Residential PV Projects

	2005	2008	2009
Credit for PV	30% w/$2000 cap	30% no cap	30% no cap
Expiration Date	Dec 31, 2008	Dec 31, 2016	Dec 31, 2016
Limit on Subsidized Financing	Reduces ITC basis by amount subsidized	Reduces ITC basis by amount subsidized	Repealed. ITC can be taken on full net amount even with subsidized energy financing
Alternative Minimum Tax	Can not get ITC if using AMT	Repealed. OK to use AMT and ITC	OK to use AMT and ITC
Utility Rebates Taxable?	No	No	No

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Commercial PV Projects

	2005	2008	2009
Investment Tax Credit (ITC)	30% no cap	30% no cap	30% no cap
ITC Expiration Date	Dec 31, 2008	Dec 31, 2016	Dec 31, 2016
30% grant in lieu of ITC?	No	No	YES (for projects started in 2009 & 2010, and finished by 12/31/16.)
Convert PTC to ITC or grant?	No	No	YES (for projects started in 2009 & 2010, and finished by 12/31/16.)
Accelerated depreciation (5 years)	Yes	Yes	Yes
50% bonus depreciation in 1st year	No	Yes	YES (expires end of 2009)