Solar Panels: A Bright Idea and Cool Tax Benefits
No need to worry about your electricity bill anymore (maybe). More and more homeowners are employing solar energy in order to save themselves some money. It could potentially save you a lot, as well be amounting to an environmentally friendly option. Tax rebates, freedom from sales tax on solar panel-related equipment and more: Imagine it. What's not to love?
The federal government has been trying to implement incentives for more responsible energy use for the past five years. The first tax break of its kind was the Energy Policy Act in 2005. People who opted for renewable energy were awarded it. Today's world has definitely changed a lot, since there used not to be many incentives to induce people to switch to renewable energy before this act, if any at all.
Homeowners can receive a tax credit of up to $2000 or 30% of what they invested in purchasing solar panels as a result of the Energy Policy Act of 2005 alone. It was extended back in 2008 to cover almost any home in the United States that primarily makes use of solar energy, although it originally only benefited homes in existence from 2005-2007. Homes built through January 2009 were included.
In addition to this act, in 2008 the Emergency Economic Stabilization Act was passed. It provides even more tax incentives for using solar energy, including panels. While it extends the Energy Policy Act of 2005, it also adds more credit for people who intend to do home improvements in 2009 or beyond. This bill removes the $2000 tax credit maximum in favor of the 30% rebate on investments in solar energy. In some instances, it is even retroactive.
The state level might also extend tax incentives for installing solar panels. The list includes, but may not be limited to, New Mexico, Florida, Vermont, Minnesota, Washington, New York, Texas, Virginia, Arizona and California. Tax rebates and the reduction or elimination of sales tax on solar panel equipment costs are some state benefits that exist. You should definitely consider it if you want to be environmentally friendly. Professional installation packages or do-it-yourself kits are available, depending on your needs. The tax incentives alone are a good reason to switch, as well.
Looking for your dream home in Colorado, but can't decide if you want to buy real estate in Broomfield Tennessee or purchase Nederland real estate? You may consider letting a real estate agent help you in your property search.
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