New Federal Incentives for Solar, Wind, Renewables & Energy Efficiency:
The Economic Stimulus Bill signed into law on February 17th, 2009 has resulted in several important new incentives and measures to stimulate energy efficiency and solar, wind and other renewable energy development, manufacturing, installation and operation in the United States.
Tax Credit Cap eliminated for Solar Electric (PV), Wind and other Energy Efficiency systems:
The Residential Energy Efficient Property Credit is a nonrefundable energy tax credit to help individual taxpayers pay for qualified residential alternative energy equipment, such as solar electric (PV) systems, solar hot water heaters, geothermal heat pumps and wind turbines. The new law removes some of the previously imposed maximum amounts and allows for a credit equal to 30 percent of the cost of qualified property.
Tax Credit Cap eliminated for Solar Water heating systems:
The $2,000 cap on the 30% Federal Tax Credit for solar water heating systems has been removed. Solar water heating systems, other than those for pools or spas, are now eligible for a full 30% tax credit against the solar system's cost.
Extended Bonus Depreciation:
Last year, Congress temporarily increased the amount (50% of the cost of capital investment) that small businesses could write-off for capital expenditures incurred in 2008 to $250,000 and increased the phase-out threshold for 2008 to $800,000. The bill will extend these temporary increases for capital expenditures incurred in 2009. Accordingly, until the end of 2010, small business taxpayers are allowed to write-off up to $125,000 (indexed for inflation) of capital expenditures subject to a phase-out once capital expenditures exceed $500,000 (indexed for inflation). (Div. B, Sec 1202, p. 74)