Legitimate Way To Lower Your Small Wind Turbine Cost
As of the end of 2008, Congress revised the Emergency Emergency Economic Stabilization Act of 2008, which a includes a provision where households, farms and corporates can now offset a portion of their small wind turbine cost against their tax.
The Act has allowed us to get a tax credit of 30% of the cost of our wind power system, provided that it’s power capacity does not exceed one hundred kilowatts, and the credit is limited to $4000. However, there are a few problems with the Act. Firstly, it does not apply for wind generators installed before 3 October 2008. Secondly, with home wind turbines, the credit is further limited to the lesser of one thousand dollars per kilowatt and four thousand dollars.
America, who has typically lead the worldwide small wind turbine market recently begun to feel pressure from other nations that offered enticing incentives for small renewable energy systems. So the new legislation was warmly welcomed by a Small Wind Advocate of the American Wind Energy Association (AWEA), Ron Stimmel, who said:
“We thank Congress for recognizing and supporting small wind systems as an important contributor toward energy security and a cleaner environment. This credit will help individuals cut their electric bills while combating global warming in a tangible way.”
This is the first federal tax credit for small wind power systems since 1985, and experts predict the legislation could expand the American wind energy industry by 40 percent or greater each year. And together with the soon-to-be finalized equipment certification system, this will aid in securing the U.S. as the leading market worldwide.
To put the industry on equal grounds with the photovoltaic (PV) solar industry, the AWEA, and its members have long requested a 30% federal investment incentive for small wind turbines 100kW and smaller. And now their persistence has paid off.
With both the wind and solar power industries operating in the same renewable energy market, it made sense that the legislation also offers tax relief for solar power installations. Small solar power owners receive 30% credit on the cost of the system, limited to four thousand dollars. And commercial solar owners get an unlimited 30% tax credit on their installation costs.
So how does this act affect anyone who has installed their own system? By the looks of things, DIY renewable energy enthusiasts can also enjoy the federal tax credit as long they have proof of all installation costs and the date they were incurred. But, it is best to get sound legal advice first to help you maximize any tax credit due.
Thanks to the new legislation, together with existing state tax incentives, everyone can benefit from having their own home solar power and small wind turbine at home. Whether you decide to invest in an expensive expert solar/wind energy system, or plan to build and install it yourself, massive power and tax savings are within your grasp. It just requires you to take some action.