What does the new Tax Credit mean to you?

When Congress, (and the President), passed the new Emergency Bill last week they gave the renewable energy markets a great boost. First, they extended the tax credit for eight years, which showed investors the US is serious this time about renewable energy, giving them confidence to invest in this market. Second, they lifted the Residential cap (of $2,000) and made the incentive a true 30%.

Which means if you spend $20,000 on a solar system, you can write off, as a tax credit, up to $6,000. Coupled with State Incentives, your overall cost for the system could be as low as $11,000. For most people the Return on Investment (ROI) would be less than 5 years.

These systems are GUARANTEED to output (at least 80% of their initial wattage) for 20 years! So anything beyond your ROI is money in your pocket. Talk about a true tax break!

What if you are subject to the AMT? The New Bill allows you to take advantage of the tax credit as well.

Thank You Congress. It only took a financial meltdown to see the light.

Let us help at www.n2electric.com

Solar Power- What's New?

Tax Extenders Included in Bailout Package, ITC Extended for 8-Years. As you are no doubt aware by now, on Friday Congress passed and the President signed into law legislation to address the economic downturn. Included was an 8-year extension of the residential and commercial ITC. The solar provisions also allow utilities and AMT filers to take the tax credit. As noted in SEIA’s Oct. 3 member update about passage of the ITC, the $2,000 cap was eliminated for residential solar electric systems only and the effective date of this provision is Jan. 1, 2009. This is a major victory for SEIA and the rest of the solar industry. For more information read SEIA’s press release from Friday and a summary of the solar provisions in the bill.The extension of the ITC was a collective two-year effort involving SEIA’s board, members, and staff. Many of you established important relationships with your Members of Congress and it is important to recognize them for their hard work. We encourage all SEIA members to attend their member’s next fundraiser and to write them a personal note thanking them for their hard work if they voted for the ITC and what the extension means for your business. See SEIA’s Senate and House ITC vote history to find out whether your member has been a solar advocate. It is very important that these relationships are maintained as we move into the 111th Congress and begin to address transmission, renewable electricty standards, global warming, and other issues of importance to the solar industry.

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