REBATES AND INCENTIVES

On October 3, 2008 the Federal Government extended the solar tax credits and took the $2000 cap off of the residential tax credit. This extension helps to level the economic playing field between renewable energy sources and polluting energy sources such as coal and nuclear energy. The latter already receive billions of dollars annually in subsidies and incentives, so we're extremely pleased that renewable energy technologies are now receiving government assistance as well. Rebates/ incentives at a glance: Residential-30% federal income tax credit Commercial-30% federal income tax credit LPEA offers a $2.00 per watt rebate for PV systems. (Capped at $3000) Read more about rebates and net metering on the LPEA website under the Renewable Energy button by clicking Here

THE ENERGY POLICY ACT OF 2005

On August 8, 2005, the Energy Policy Act of 2005 was signed into law. The new energy bill provides tax credits to homes and businesses that install solar systems from January 1, 2006 to December 31, 2008. For residential systems the amount of the tax credit is equal to 30% of the total cost of the solar system after other rebates and incentives have been deducted, and it is capped at a maximum of $2,000. For commercial systems the amount is 30% of the total cost of the system before other incentives and there is no cap. There are also new tax credits available for solar thermal systems, hybrid cars and many other types of energy efficiency improvements. It is important to note that there are certain allowances and restrictions associated with the tax credits. For example, for residential customers, the seia tax credit manual states, “an individual cannot use the residential credit to reduce his/her income taxes below the level at which the alternative minimum tax kicks in. Therefore, taxpayers who pay minimum taxes -- and there is a growing number -- cannot use the residential tax credits immediately. The credits can be carried forward. When purchasing a system, we strongly recommend that you contact a professional tax advisor to inquire about your specific situation. See Energy Star rebates by clicking Here