Financial Incentives Calculator
Income Tax Credit:
Get 30% back from the federal goverment in the form of a federal income tax credit.
Retirement Tax Credit:
The 30% tax credit also applies to taxes assesed when you withdrawl retirment funds.
- Tax credit can be applied over two years.
- You must have tax liability
In other words, you must owe enough tax over two years to equal 30% of the cost of the system in order to take full advantage of the credit.
A growing number of states like California and Florida offer cash rebates based on the size of the system ($ per watt).
State Tax Credits:
Many states offer state income tax credits, reducing your tax bill. These credits can either be based on a percentage of the system price, or a rebate per kWh of solar energy produced.
Many utilities will rebate home owners for the energy they produce. This rebate is usually comparable to what a home owner pays for energy (The national average is $0.12 kwh)
Details of the Tax Credit The solar investment tax credit (ITC) provisions are:
- Extending for 8 years the 30-percent tax credit for both residential and commercial solar installations;
- Eliminating the $2,000 monetary cap for residential solar electric installations, creating a true 30-percent tax credit (effective forsystems placed in service after December 31, 2008).
- There has been no cap for commercial installations. · Eliminating the prohibition on utilities from benefiting from the credit;
- Allowing Alternative Minimum Tax (AMT) filers, both businesses and individuals, to take the credit;
- Authorizing $800 million for clean energy bonds for renewable energy generating facilities, including solar.