Using Tax Credits To Minimize Your Small Wind Turbine Cost
Just a few months back, before President Bush left office, he signed the revised Emergency Economic Stabilization Act of 2008 into law. In that legislation is a an opportunity for small businesses, farms, and residents to credit some of their small wind turbine cost against their tax expenses.
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:
“The AWEA thanks President Bush for acknowledging and promoting the role of small wind power solutions towards our energy security and environmental concerns. These subsidies will promote Americans to save on energy costs, while reducing global warming in a big way.”
This bill is the first federal incentive for small wind turbines since 1985, and industry members believe the credit could grow the U.S. wind power market by 40% or more annually. And along with the upcoming equipment certification scheme, it will help secure it as the global leading market.
If it were not for the persistence of the AWEA requesting a 30% tax credit for small wind turbines (of no more than 100 kilowatts in capacity), perhaps the wind power marker would never have been able to compete equally with the photovoltaic (PV) market.
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.
How does the new legislation influence privately made small wind turbines? It looks like do-it-yourself wind power systems can receive some tax incentives, as long as it can be shown when and how much costs were. Just remember, to get professional legal advice to help you enjoy the best tax credit due.
With all these state and federal tax credits for renewable energy homeowners, it makes sense to get your own small wind turbine at home. No matter whether you buy an expensive commercial home wind turbine, or learn to build a cheaper one yourself, the potential for you to save a lot of money on electricity and tax expenses is a decision away. It just requires you to make the right choice.
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