Solar Energy Federal Tax Incentives
Good news from Washington, D.C. today: a couple of Senators proposed legislation that would extend tax credits for solar energy systems (residential & commercial) through 2016.
This is important. We need to foster the growth and uptake of renewable energy sources. Tax credits are a good way to make this happen. Extending the credits far into the future sends a signal to consumers and businesses and state legislatures that solar is an important part of America's energy future.
As the article states:
A long-term extension is essential to reducing the cost of solar energy, as it would create market conditions that allow solar companies to make investments and drive down costs through economies of scale. A longer duration will also be needed to help stimulate the development of large-scale concentrating solar power projects.
The legislation proposed today includes the following provisions:
Residential Solar Tax Credit: Extends a 30-percent tax credit, created in the Energy Policy Act of 2005, for the purchase of residential solar water heating and fuel cell property. Changes the maximum credit to $1,500 for each half-kilowatt of capacity for solar PV equipment and $1,000 for each kilowatt of capacity for fuel cells. Credits may be taken against the alternative minimum tax. Expires after December 31, 2016.Business Solar Tax Credit and Fuel Cell Tax Credit: Extends a 30-percent business credit, established in the Energy Policy Act of 2005, for the purchase of fuel cell power plants, solar energy property, and fiber-optic property used to illuminate the inside of a structure. Changes the maximum credit to $1,500 for each half-kilowatt of capacity for solar PV equipment. Credits may be taken against the alternative minimum tax. Expires after December 31, 2016.
Accelerated Depreciation: Creates a three-year accelerated depreciation period for all solar equipment eligible for the business solar tax credit.
Congress, please make this happen!
