FINANCIAL INCENTIVES
With the availability of Tax incentives and utility rebate programs, it has now been made financially attractive for many to invest in both and photovoltaic (PV) solar and wind turbine systems. Combining that with inflating utility bills and you will recover your Return on Investment in less time than you would ever imagine.

Solar Energy Federal Tax Credit
Residents and businesses receive a tax credit worth 30 percent of the cost of buying and installing a photovoltaic system. This legislation is part of the Energy Policy Act of 2005 (Section 1336- 1337).

The latest renewable energy tax credit goes into effect on January 1, 2009. At this time, for residential solar power systems you can take 30% off your taxes for the entire cost of the solar power system with no cap on the amount. Residential solar power systems installed in 2008 can take 30% off your federal taxes, up to $2,000.

New Wind Energy Tax Credit
The Emergency Economic Stabilization Act of 2008 also added a new federal-level investment tax credit to help consumers purchase wind turbines for home, farm, or business use. Owners of small to mid-size wind systems (<100 KW) can receive a credit for 30% of the total installed cost of the system, with no cap or maximum amount. The credit is available for equipment installed from January 1, 2008 through December 31, 2016. For turbines used for homes, the credit is limited to the lesser of $4,000 or $1,000 per kW of capacity, if installed in 2008. After 2008, there is no cap on the amount of ITC.

Federal Modified Accelerated Cost-Recovery System (MACRS)
Under the Modified Accelerated Cost-Recovery System (MACRS), 26 USC § 168, businesses can recover investments in solar and wind and geothermal property through depreciation deductions. The MACRS establishes a set of class lives for various types of property, ranging from three to 50 years, over which the property may be depreciated. For solar, wind and geothermal property placed in service after 1986, the current MACRS lifetime class is five years

Special 50% First year Depreciation Allowance
This IRS depreciation allowance, IRS Section 179, allows a 50% first year depreciation deduction for equipment placed into service. Check IRS publication 946 for more details.

Renewable Energy Systems Improvement Grant
Agricultural producers and rural small businesses may be eligible for a grant that pays up to 25 percent of the project costs. This program grants up to $500,000 per renewable-energy project. Awards are made on a competitive basis.

REFERENCE INFORMATION
For the most current information and full descriptions on all federal and state by state grant and tax incentives for renewable energy please visit at http://www.dsireusa.org

The Tax Incentives Assistance Project (TIAP) website sponsored by a coalition of public interest nonprofit groups, government agencies, and other organizations in the energy efficiency field, provides consumers and businesses information they need to make use of the Federal income tax incentives for energy efficient products and technologies. This website has a lots of useful and up to date information.Visit http://www.energytaxincentives.org for more information.