Renewable Energy Incentives-Tax credits
Posted by Jessy G on Tue, Apr 28, 2009 @ 01:56 PM
"Renewable energy." That’s the big buzzword of today.
With the threat of Global Warming, mixed with economic uncertainty, a lot of people are confused.
We’ve started hearing about the tax credits and incentives; experts are throwing numbers at the public; and the federal and state government are throwing money at the industry. The big question homeowners are asking is, “How do I get that money?”
There is a misconception that there are rebates being offered for alternative and clean energy being installed in homes. These are actually Tax CREDITS, not rebates. The difference is that a tax credit goes towards your annual income tax filings. Any unused portion can be carried for up to 5-8 years for State taxes (depending on your State), or 8 years for Federal taxes. You can receive cash back if your credit is worth more than you owe in taxes.
The Federal government has a cap of $1500 that a homeowner can receive for renewable energy projects in 2009. States usually have caps on these credits as well. Here is a website to help you look up your State’s guidelines.
You’ll find that California even has local incentives, such as Berkeley’s photovoltaic incentives for local homeowners.
The key to navigating all of these rebates and your eligibility for each, is really researching the kind of energy that will fit your budget in the long run.
Don’t forget to gather all of your electric bills from the past year. You will need these as you start to narrow down your choices for installers and what type of renewable energy will fit your home’s needs.