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Solar, Wind and Geothermal Energy Tax Credits

Rebates, Incentives, and Savings with Unlimited 30% Federal Breaks

Solar Residential Tax Credit - Jeremy Levine Design
Planning an energy efficiency project with solar, wind, or geothermal? Through 2016 federal energy tax credits for all three are unlimited, with a 30% return on taxes.

As part of the American Recovery and Investment Act of 2009, new energy tax credits were developed for solar, wind, and geothermal residential energy projects. These energy efficiency projects are designed to provide savings for taxpayers through incentives and rebates that encourage home improvement and help provide business for alternative energy contractors.
Energy Tax Credits

Through December 31, 2016 taxpayers receive an unlimited 30% tax credit on qualifying solar, wind, and geothermal residential energy improvements. Qualifying homes include:

* Primary residence
* Second homes
* Existing homes
* New construction

Rentals do not qualify for this break. The inclusion of second homes is a departure from previous federal energy tax credits and dramatically expands the potential reach of this program.
Solar, Wind and Geothermal Tax Breaks

Unlike energy efficiency programs for mainstream projects (windows, doors, HVAC, etc.) that cap the energy tax credit at $1500 per tax return for improvements made in 2009 and 2010, this "green" tax incentive is unlimited.

For the solar residential tax credit:

* Solar hot water heaters - does not include water for hot tubs and swimming pools. Water must be used in the dwelling.
* Must be certified by Solar Rating and Certification Corporation (SRCC) or a comparable state agency.
* At least half of the energy generated by the solar set up must be generated by the sun.

For the wind residential tax credit:
Read on

* Federal Energy Tax Credits, Savings & Incentives
* Mass. Cash for Clunkers Appliance Rebate Details
* Energy Tax Credits on Home Improvements

* Cannot have a nameplate capacity of more than 100 kW.

For the geothermal residential tax credit:

According to the EnergyStar.gov site, requirements vary depending on the type of system installed.

* Closed Loop:
* EER ≥ 14.1
* COP ≥ 3.3
* Open Loop:
* EER ≥ 16.2
* COP ≥ 3.6
* Direct Expansion:
* EER ≥ 15
* COP ≥ 3.5

Related Rebates and Incentives

The federal government offers capped tax breaks on other home improvements for energy efficiency; read more about these programs in the article Federal Energy Tax Credits, Savings & Incentives, which details how to receive tax credits on windows, insulation, doors, roofs, wood and pellet stoves, HVAC and more.
Finding Energy Efficiency Contractors to Handle Solar, Wind, Geothermal in Your Area

Because so many residential alternative energy systems are fairly new, it`s uncommon for the average contractor to have experience with these energy efficiency remodeling projects. Research contractors with experience in solar, geothermal, and/or wind in the regions where the home is located. Try to find local providers when possible, as these specialists will be most familiar with local terrain, weather conditions, and other factors affecting efficient use.

Look for contractors who can show examples of projects they`ve completed, who demonstrate mastery with the tax incentives offered under this unlimited 30% energy tax credit, and who are familiar with suppliers for special projects.

To read more about IRS energy credits, please go to Federal Energy Tax Credits, Savings and Incentives to understand how insulation, windows, furnaces and more to save tax money on energy efficiency projects.

Read more at Suite101: Solar, Wind and Geothermal Energy Tax Credits: Rebates, Incentives, and Savings with Unlimited 30% Federal Breaks http://www.suite101.com/content/solar-wind-and-geothermal-energy-tax-credits-a200493#ixzz1DV5BmDm6

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