2010 Solar Federal Tax Credit

2009 brings a new residential Solar Federal Tax Credit.  The old ones was capped at $2,000.  With the new one one you can claim up to 30% of installation costs for a new system.  This works well when coupled with a state rebate program. (CA, CT, NJ, NY) Also look for city programs.

Sungevity has a free solar panel analysis for California residents.

The Government has a powerful renewable energy incentive designed to reduce our reliance on foreign oil and increase clean, efficient home heating with wood logs and pellet fuels. The stoves must have a thermal efficiency rating of at least 75% as measured using a lower heating value.  Vendors have labeled which of their products qualify.

This credit reduces the amount of tax you owe for 2010. The credit is a reduction of total income tax at the bottom of your return. This tax credit is a non-refundable tax credit. Consult your tax adviser for details. Use it or lose it! Credit details.

A 3kW system costing $24K would get $5K in state rebates and $5.7k Federal rebate. Final price $13.3k.  System payback time could drop to 6-7 years.  Nice!

Beware that those affected by the Alternative Minimum Tax (AMT) in 2010 may not qualify for the rebate unless Congress passes an AMT patch.

Interested in Solar? Read our article Are Solar Panels for Me? and No money down Solar Panels.

Related posts:

1. Federal Tax Credit on Furnaces and Boilers
2. New 2009 Residential Wind Power Tax Credit
3. Federal Tax Credit on Energy Efficient Water Heaters
4. Federal Tax Credit on Windows, Doors, Skylights
5. Federal Tax Credit on Insulation
6. Federal Tax Credit on Geo-Thermal Heat Pump
7. Federal Tax Credit – Wood Heat Stoves, Pellet Stoves, Fireplace Inserts
8. Solar Day – Solar Energy Education – Saturday June 19, 2010

Posted on April 26th, 2010
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