- Homeowners who purchase a small wind turbine, a solar water heater or solar panels, also known as photovoltaic systems, are eligible for a 30 percent federal tax credit off the installation costs. The tax credit is available for newly constructed and existing homes that are primary or secondary residences. Rental homes do not qualify for the tax credit. The tax credit is scheduled to expire Dec. 31, 2016.
- Businesses in the commercial, industrial, utility and agriculture industries are eligible for 30 percent off expenditures for solar water heat, solar space heat, solar thermal electric, solar thermal process heat, solar panels, solar hybrid lighting and small wind turbines up to 100 kilowatts in capacity, according to the Database of State Incentives for Renewables & Efficiency. This federal tax credit, which was expanded and extended by the Energy Improvement and Extension Act of 2008 and The American Reinvestment Act of 2009, is scheduled to expire Dec. 31, 2016.
- Businesses in the commercial and industrial industries who sell their wind energy to unrelated buyers can choose to take the federal renewable energy production tax credit instead of the business energy investment tax credit. This tax credit, which offers 2.2 cents per kilowatt used per hour, is generally for a duration of 10 years after the wind system is installed. The deadline to apply for the tax credit is Dec. 31, 2012.
- Twenty-four states, plus the Commonwealth of Puerto Rico, offer some sort of tax credits for renewable energy. Those states include Arizona, Georgia, Hawaii, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Missouri, Montana, New Mexico, New York, North Carolina, North Dakota, Oklahoma, Oregon, Rhode Island, South Carolina, Utah, Vermont, West Virginia and Wisconsin. The scopes of the tax credits vary from state to state. All but four offer tax credits for businesses and individuals. Indiana and West Virginia offer personal tax credits only Oklahoma and Missouri offer business tax credits only.
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