Incentives for Solar Power Systems
One of the largets advantages of utilising the solar power system is to get the benefit of incentives offered by the state and federal governments. In recent months Congress lifted the cap on tax incentives for solar power systems, and extended the 30% credit. They encourage residents to use safe, non-polluting renewable energy by offering these incentives for their homes and businesses that lower the cost of installing solar power for residential and industrial use. Check out the DSIREUSA.org website for information on incentives in your area.
Solar Power Incentives at Federal Level
Solar Energy Federal Tax Credit
As per Energy Policy Act of 2005 (Section 1336- 1337) you can avail a 30% tax credit either for houses or for the businesses against your purchasing and installation of a photovoltaic system.
Federal Modified Accelerated Cost-Recovery System (MACRS)
Under this law the businesses can recover investments in solar and wind and geothermal property through depreciation deductions. The law announced a set of class lives for various types of property. It varies from 3 to 50 years for a property to be depreciated. For solar, wind and geothermal property placed in service after 1986, the current MACRS lifetime class is five years.
Special 50% First year Depreciation Allowance
According to IRS section 179 the act allows a 50% first year depreciation deduction for equipment placed into service. Check IRS publication 946 for detailed info.
Renewable Energy Systems Improvement Grant
A grant of up to 25% of the project cost could be avail by agricultural producers and rural small businesses. This improvement program might approve a grants up to $500,000 per renewable-energy project. Surely there are competition to be eligible for this grant. You are advised to visit dsireusa.org to check the most current information on this funding program.
