Get possible electric bill cutbacks very soon. More and more homeowners are utilizing solar energy in order to save themselves some money. Not only is it an ecologically friendly option, it could also possibly save you a lot. Tax refunds, freedom from sales tax on solar panel-related equipment and more: Picture that. What is not to like?
For the previous five years, the federal government has been trying to give out rewards for more responsible energy use. The Energy Policy Act in 2005 was the first tax break of its type. People who opted for renewable energy were awarded it. If you’ve been a house owner long enough, you’ll realize that some big modifications have gone into effect, as there used to be very few rewards for house owners to make the switch to renewable energy.
Homeowners can receive a tax credit as high as $2000 or 30% of whatever they invested in buying solar panels because of the Energy Policy Act of 2005 alone. It was expanded back in 2008 to cover nearly every home in the United States that mainly makes use of solar energy, even though it originally only benefited homes existing from 2005-2007. This consists of houses constructed through January 2009.
Further to this act, in 2008 the Emergency Economic Stabilization Act was approved. Use of solar energy, including solar panels, now provides even more tax incentives. Though it expands the Energy Policy Act of 2005, it also adds more credit for those who plan to do home improvements in 2009 or beyond. This bill takes out the $2000 tax credit maximum in favor of the 30% rebate on investments in solar energy. Retroactivity in certain situations is also one of its features.
The state level may also extend tax incentives for setting up solar panels. New Mexico, Florida, Vermont, Minnesota, Washington, New York, Texas, Virginia, Arizona and California are some of these states. Tax rebates and the drop or elimination of sales tax on solar panel equipment expenses are some state perks that exist. It is certainly worth considering, if you’re thinking of going the environmentally friendly route. Professionals can install solar panels or you can purchase a do-it-yourself kit. The tax incentives are well worth the shift either way.