Tuesday, March 31, 2009

Stimulus package - energy tax credits for your home

Excerpted from the EPA website and date February 27, 2009:

Investment Tax Credit for Installation of Solar, Geothermal, and Wind Power

For residential properties, this credit removes the previous $2,000 cap on the 30 percent federal tax credit for purchase and installation of solar thermal and geothermal property. For business, the previous $4,000 cap for purchase and installation of small-scale wind property (defined as wind power with a maximum generation capability no larger than 20 kW). For example, if it cost a homeowner $25,000 to purchase and install solar cells for electricity generation, the existing legislation would have limited the credit for installing this system to $2,000. Under ARRA, $7,500 of the installation cost would be offset by a tax credit. If a business were to spend $100,000 installing small-scale wind property, the previous credit of $4000 will no longer apply and the tax credit will instead be $30,000.

Keep in mind that solar power can be harnessed via solar electric or solar thermal units.

Tim White


Anonymous said...

It should be a 100% credit. This would still not equal the billions spent on bail outs. This money will be well spent and save billions in future energy consumption.

Bill said...

Pay the cost to install energy efficient things into my house I'll go for it. When the oil companies own the right to solar, wind and fuel cells then it will become economically viable to change. Even Ray Charles could have seen this coming.