Tax Credits for solar ‘PV’ systems being installed for residential homeowners
The Emergency Economic Stabilization Act of 2008 (P.L. 110-343)
The Federal Government offers substantial incentives for consumers to take advantage of purchasing photovoltaic (PV) systems.
The Emergency Economic Stabilization Act of 2008 (P.L. 110-343) included, extended and/or amended many consumer tax incentives originally introduced in the Energy Policy Act of 2005 (EPACT). The bill also included tax incentives for businesses, utilities, and government. For a complete summary of the tax incentives included in the bill, read the summary of Energy Tax Incentives in The Emergency Economic Stabilization Act of 2008.
Tax credits were further enhanced in February 2009 by The American Recovery and Reinvestment Act of 2009, which removed the maximum credit amount for all eligible renewable energy technologies (except fuel cells) placed in service after 2008.
Tax Credits Defined
A tax credit offers significantly more financial savings to the buyer than a tax deduction. A tax deduction is subtracted from the income before tax liability is computed. The tax credit is subtracted directly from the total tax liability. This means that a tax credit offers more savings to the consumer than the tax deduction. For a comparison, a tax credit of $1,000 for a taxpayer in the 28% tax bracket is the equivalent of a tax deduction of $3,751.
Qualifications and Provisions
For residential PV systems, consumers who install solar electric systems can receive a 26% tax credit for systems placed in service starting January 1, 2020. Beginning January 1, 2009 the tax credit cap no longer applies.
A four-page Q&A on the revised federal solar tax incentives, prepared by Solar Energy Industries Association. (Note that this document was published in October 2008.)
The Florida Renewable Energy Technologies and Energy Efficiency Act
The 2006 Florida Renewable Energy Technologies and Energy Efficiency Act, signed into law on June 19, 2006, provides consumers with tax credits for photovoltaic systems.
Our family here at Coronado Solar definitely wants to ensure the tax credits available to you are utilized when your system gets installed. Click HERE to find out what your solar future could look like!