Finally, wind energy for homes and small business gets incentives from the Federal Government. Contact All Things Renewable for more information.
The following is courtesy of Southwest Windpower:
On February 17, 2009 President Obama signed into law the American Recovery and Re-investment Act of 2009. With a significant emphasis on renewable energy technology deployment and job expansion, the bill improved upon the 2008 small wind tax credit by removing “cost caps.” This change allows consumers and small businesses to deduct from their tax liability 30% off the installed cost of a wind turbine. Additionally, businesses will have the option of receiving their credit in the form of a cash grant.
Q: What does this mean to me?
A: The entire cost of a Skystream system (plus installation) is reduced by 30 percent provided you have a tax liability over the course of two years. Depending on where you live, you could save even more! States have also implemented rebates for small wind systems which can be used in addition to the Federal credit. Furthermore, in the last two months alone, more than 30 states have introduced legislation that either expands incentives for renewable energy and/or addresses market barriers.
Typically, a tax credit is money that you can deduct from any money owed to the federal government at tax time (tax liability). The small wind tax credit can be carried over two years after the product is installed. For more information on how to take advantage of the credit, we suggest that you speak to a tax specialist.
Q: How do I claim the credit?
A: You will be required to file the long form and itemize your deductions. The IRS form 5695 must be completed and filed with your taxes. The current form does not reflect the changes to the most recent legislation.
Q: What if I want to purchase and install more than one Skystream?
A: The stimulus package allows for a 30 percent tax credit on the total cost of multiple units. There is no cap on the 30 percent tax credit. Businesses may qualify for a grant from the US Treasury in lieu of a tax credit.
Q: I heard I can get cash back rather than a tax credit – how does that work?
A: Businesses can apply for a grant from the US Treasury and rather than a tax credit, receive a cash grant. The details are still being worked out but should be in place by April or May. Keep in touch with your dealer or the manufacturer for more information.
Q: Does this work for all small wind systems, even Whisper and Air Breeze?
A: Yes. The incentive is available to all users of small wind systems.
Q: How much does a Skystream cost?
A: Although costs vary depending on installation and height, the following is a guideline for a Skystream mounted on a 33-foot’ monopole.
Installed Cost ……………………….. $ 14,000
Federal Incentive (30%) …………… $ ─ 4,200
State Incentive ………………………. $ 0*
Final Cost ……………………………. $ 9,800
* State incentives can reduce costs further in some areas.
