Green Power Switch News
Vol. 5, No. 4 — Winter 2006
Cut your energy use—and your taxes!
The Energy Policy Act of 2005 (EPACT), signed into law last August, can help you offset the costs of installing a renewable energy system in your home or business. Tax credits for solar systems are available that will reduce your federal income taxes for 2006 and 2007 and lower your energy costs for years to come.
Residential solar systems include photovoltaic (PV) and hot water systems. Each type is eligible for a tax credit equal to 30 percent of the installation costs, with a maximum of $2,000 per system. More solar options are available for small commercial facilities.
Frequently asked questions
- Can the credits carry over multiple tax years?
Yes. - What is the annual household maximum credit?
$4,000 per taxable year. - Does it matter when I install my system?
Yes. The tax credits apply only to systems placed in service between January 1, 2006, and December 31, 2007. - Is a pool heating system eligible?
No, pools and hot tubs are not eligible for the credit. - Are there certification requirements?
Yes. - Is solar the only renewable technology included?
No, credits also exist for fuel cells.
In addition to tax credits, you may be eligible to participate in TVA’s Generation Partners Program. Contact your local power distributor for availability of the program, or go to www.gpsgenpartners.com.
EPACT 2005 also includes tax incentives for energy efficiency improvements and fuel-efficient vehicles. For more information, visit www.energytaxincentives.org.
| Generation & Participation Updates |