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Incentives
The American Recovery and Reinvestment Act of 2009 (ARRA) has extended federal tax
credits for renewable energy systems. In some cases, a Federal grant can be obtained
in lieu of the tax credit. Many states also offer incentives and other financial
programs.
Residential Tax Credits:
|
System Type
|
Federal Tax Credit
|
Federal Tax Credit Cap
|
Date(s) Installed
|
|
Solar Energy
(hot water and electric)
|
30%
|
None
|
January 1, 2009
to
December 31, 2016
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Geothermal
|
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Microturbines
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Note: A tax credit is available for systems installed prior to 2009;
however tax credit caps are applicable.
Corporate Tax Credit:
|
System Type
|
Tax Credit
|
Tax Credit Cap
|
Date(s) Installed
|
|
Solar Energy
(hot water and electric)
|
30%
|
None
|
Prior to
December 31, 2016
|
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Geothermal
|
10%
|
None
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October 4, 2008 to
December 31, 2016
|
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Small Wind Turbines
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30%
|
$4,000
|
October 4, 2008 to
December 31, 2008
|
|
None |
January 1, 2009 to
December 31, 2016
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Microturbines
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10%
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$200 per kW
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Prior to
December 31, 2016
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In most cases, renewable energy systems are subject to 5-year accelerated depreciation. This compares to the typical 39.5 year depreciation for traditional HVAC equipment.
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