INCENTIVES

To facilitate the adoption of renewable energy systems on a broad scale, many states are offering attractive incentive programs to homeowners and businesses.

Vermont:
All renewable energy systems are exempt from Vermont sales tax.

Solar electric PV systems for individuals and businesses qualify for a rebate of $1.75/Watt with a maximum of $8,750. Multi-family, low-income housing projects qualify for $3.50/Watt with a cap of $35,000 or 50% of total installed cost

Solar hot water systems for individuals and businesses qualify for a rebate calculated as $1.75/100 BTU/day, up to a maximum of $8,750. Multi-family, low-income housing projects qualify for a rebate of $3.50/100 BTU/day with a cap of $35,000 or 50% of total installed cost.

Wind systems for individuals and businesses qualify for a rebate of $2.50/Watt with a cap of $12,500. Schools, farms, and local/state governments qualify for $4.50/Watt with a cap of $20,000 or 50% of installed cost.

New York:
All renewable energy systems are exempt from New York State sales tax.

Solar electric PV systems qualify for a rebate of $4/Watt up to 5 kW. Systems installed in a New York Energy Star home qualify for $4.50/W up to 5 kW. Building integrated systems also qualify for rebates of $4.50/W up to 5 kW. For additional capacity above 5 kW, all residential incentives are reduced by $1.00/watt and the residential incentives are capped at 10 kW.

NY also offers a Green Building Tax Credit of 25% for solar hot water and PV systems for buildings meeting certain criteria related to energy use, indoor air quality, materials, water conservation and commissioning.

Federal Incentives:
Residential solar hot water and solar electric PV systems qualify for a personal tax credit of 30% of the system cost after any state incentives with a cap of $2,000. An individual can take both a 30% credit up to the $2,000 cap for a PV system and a 30% credit up to a separate $2,000 cap for a solar water heating system ($4,000 tax credit total.)

Commercial solar hot water and solar electric PV systems qualify for an investment tax credit 30% of the system cost after any state incentives. There is no cap on the solar tax credit for businesses.

Solar hot water, PV and wind power systems are classified as “5-year property” under the Modified Accelerated Cost-Recovery System (MACRS). Businesses can recover investments in solar and wind systems through depreciation deductions. An accelerated depreciation schedule enables a business to directly reduce the amount of taxes owed by 40% of the cost of the system after any other federal and state incentives (assuming a 40% tax bracket) over a 6-year period.

More details are available at http://www.dsireusa.org/

Call us today to for more information about incentives in your area.