Guide to New Federal Tax Credits for Solar Energy Released
A comprehensive tax manual is available to assist solar companies and consumers in claiming new federal tax credits for solar energy.
Federal solar tax incentives enacted in the Energy Policy Act of 2005 allow homeowners a tax credit of 30 percent for qualifying solar electric (PV) or solar water-heating expenditures, up to a maximum of $2,000 per technology. For businesses, the investment tax credit is increased from 10 percent to 30 percent of qualified solar property expenditures, with no cap on the credit amount. These incentives apply to equipment placed in service during 2006-2007.