Guide to New Federal Tax Credits

[skids]

To assist solar companies and consumers in claiming new federal tax credits for solar energy, the Solar Energy Industries Association (SEIA) today released a comprehensive tax manual. The SEIA Guide to Federal Tax Credits for Solar Energy, prepared by SEIA and the law firm of Chadbourne & Parke, LLP, is publicly available for download at www.seia.org.

Federal solar tax incentives enacted in the Energy Policy Act of 2005 allow homeowners a tax credit of 30% 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% to 30% of qualified solar property expenditures, with no cap on the credit amount. These incentives apply to equipment placed in service during 2006-2007.

...

The Internal Revenue Service is not expected to issue specific regulations on the solar tax credits in the near term. The SEIA tax manual's interpretation is based on legislative language and intent, as well as existing precedent, particularly for the commercial tax credit. Readers are strongly advised to consult their tax professional when using the information contained in the manual.

http://www.renewableenergyaccess.com/rea/market/business/viewstory?id=42584

(direct link to SEIA PDF: http://www.seia.org/manualdownload.php)

[phantom power]

1. Interesting, 2K cap for residential, no cap for businesses.

I wonder if that is the result of some pro-business reflex, buried in the GOP ganglia, or if there was a reason for it?

[Dead_Parrot]

2. Pessimistic view:

Businesses tend not to give a shit about the environment (yeah, there are exceptions but not that many) so it's almost irrelevant what rebate they give, since no-one will use it. Households may well want to do something, so they are pinned by keeping the cap stupidly low.

Result? Happy mining and oil companies, fucked planet. Seems to fit the pattern.