How to Reduce the Cost of a Wind System
Background
On February 17, 2009 President Obama signed into law the American Recovery and Re-investment Act of 2009. With a significant emphasis on renewable energy technology deployment and job expansion, the bill improved upon the 2008 small wind power tax credit by removing “cost caps.” This change allows consumers and small businesses to deduct from their tax liability 30% off the installed cost of a wind turbine. Additionally, businesses will have the option of receiving their credit in the form of a cash grant.
Key points of the Act
Residential home owners can receive a 30% federal tax credit in the form of a deduction on tax liabilities owed for up to 5 years after the installation of the Skystream. The 30% tax credit is based on total installed costs after any state or other grants are removed. Established businesses can receive a 30% federal tax credit in the form of a deduction on tax liabilities owed for up to 5 years after the installation of the Skystream or in the form of a grant from the US Treasury. The 30% tax credit is based on total installed costs after any state or other grants are removed.
Q: How does a tax credit work?
A: Typically, a tax credit is money that you can deduct from any money owed to the federal government at tax time (tax liability). The small wind tax credit can be carried over two years after the product is installed. For more information on how to take advantage of the credit, we suggest that you speak to a tax specialist.
