Federal tax credits??

EAdamsEAdams Solar Expert Posts: 34
Anyone know if one of those small 400w wind generators (Air-X?) would be covered in the Federal Tax Credits for Energy Efficency??


http://www.energystar.gov/index.cfm?c=tax_credits.tx_index#s10


If so, 30% of the price is credit in taxes. Might be a good way to try my hand at wind energy.

Comments

  • dwhdwh Solar Expert Posts: 1,341 ✭✭✭
    Re: Federal tax credits??

    You really should read a few of the threads in this topic of the forum before you try your hand.
  • EAdamsEAdams Solar Expert Posts: 34
    Re: Federal tax credits??

    will do .... BUT will it qualify??? Anyone?
  • WindsunWindsun Solar Expert Posts: 1,164 ✭✭
    Re: Federal tax credits??

    In theory it does, but to be honest it would be a real waste to eat up the tax credit for something that will give you so little.

    You can only claim the credit one time, so you might get $150 credit or so now, but if 3 years from now you install a $30,000 solar system, you would get nothing for that.
  • GreenPowerManiacGreenPowerManiac Solar Expert Posts: 453 ✭✭✭
    Re: Federal tax credits??

    Yes, they will be covered for tax year 2009. IRS 5695.pdf form.
    http://www.irs.gov/pub/irs-dft/f5695--dft.pdf

    The old 2008 forms are outdated and 2009 hasn't been official yet but you can find them. Will it be worth it ? In my standpoint, yes. I spent a total of $3800.00 on my wind project and kept all the receipts. This includes everything necessary to run and generate power with your wind system. Inverter, batteries, wiring, load centers, the whole bit.

    The Federal tax credit for wind energy and solar, thermo, & a few others will be able to take credit until 2016. Even if you bought a 30k system 3 years from now your federal tax credit would be 9k. This can be spread out over the next 4 years if you installed in 2012 so what credit is not used is carried over until the following years eventually exhausting the credit. The true beauty of a 1 to 1 credit is that what ever you're paying the Fed in taxes every paycheck, you're getting that entire amount as a refund until your credit is exhausted. The smaller systems don't need to qualify from a business standpoint according to the IRS. From my $3800, I'll get a $1140 tax credit.

    So go buy your turbine system or build it yourself if you wish like I did. I sleep better at night knowing that I'm covered that well.
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  • mike95490mike95490 Solar Expert Posts: 8,377 ✭✭✭✭✭
    Re: Federal tax credits??

    Are these credits only for grid-tie, or do they include off-grid systems ?
    Powerfab top of pole PV mount | Listeroid 6/1 w/st5 gen head | XW6048 inverter/chgr | Iota 48V/15A charger | Morningstar 60A MPPT | 48V, 800A NiFe Battery (in series)| 15, Evergreen 205w "12V" PV array on pole | Midnight ePanel | Grundfos 10 SO5-9 with 3 wire Franklin Electric motor (1/2hp 240V 1ph ) on a timer for 3 hr noontime run - Runs off PV ||
    || Midnight Classic 200 | 10, Evergreen 200w in a 160VOC array ||
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  • WindsunWindsun Solar Expert Posts: 1,164 ✭✭
    Re: Federal tax credits??
    The Federal tax credit for wind energy and solar, thermo, & a few others will be able to take credit until 2016. Even if you bought a 30k system 3 years from now your federal tax credit would be 9k. This can be spread out over the next 4 years if you installed in 2012 so what credit is not used is carried over until the following years eventually exhausting the credit.

    According to the IRS for 2008, it is a ONE TIME credit credit unless that has changed recently. However, the IRS site is about as clear as mud on that for 2009, with some places saying it is a one time credit, others making no mention of it. In no place does it specifically say that you can claim credit for multiple systems or installs. So the bottom line is that at this point, I don't think anyone knows for sure, including the IRS. :confused:
    Tax incentives include tax credits and depreciation. The Federal Investment Tax Credit for Residential is 30 percent of net system cost, capped at $2,000 (prior to 12/31/08 and no cap afterwards). It is a one-time credit, but may be carried forward if not completely useable in the system installation tax year. The IRS hasn't produced the 2009 5695 form required for claiming this credit for individual filers.
  • GreenPowerManiacGreenPowerManiac Solar Expert Posts: 453 ✭✭✭
    Re: Federal tax credits??

    Both Grid-Tie and Off are credited.

    Since the 2009 IRS form is still in draft, it appears that Off-grid or small personal systems qualify without a licensed installer. Any Grid-Tie systems better be installed by a licensed business to get any rebates or credits.

    The 2008 form was probably thought up by an ex-pres oil man.

    Cash for Clunkers
    Clean Diesel credit
    Raising limits on Renewable energy credits

    There's not much reason to believe it won't happen.
    Nature's Design & Green Energy on FaceBook : Stop by and "Like" us anytime.. Many up-to-date articles about Renewables every day.
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