Energy Policy Act of 2005
In an effort to promote the use of solar energy and minimize our need for foreign oil, the federal government has recently implemented a policy that allows consumers to get additional savings in the form of tax credits for these technologies:
30% Tax Credit
Photovoltaics, solar water heaters,
concentrated solar power and solar hybrid lighting
Homeowners who install solar energy systems will receive a tax credit worth 30% of the system cost, capped at $2,000 (e. i. If you purchase a $6,666.66 system, your credit is $2,000)
Businesses that purchase solar equipment will also receive a credit worth 30% of the overall system cost. There are no caps (limits) for commercial/business tax credits.
A Tax Credit is not to be confused with a tax deduction, credits are a direct credit against taxes owed. If you overpaid taxes through withholding, it would increase your rebate. If you underpaid taxes for the tax year, it would directly reduce the amount you owe. Additionally, these tax credits are authorized through 2008.
This is a good time to consider purchasing "the whole package"; by taking advantage of the savings offered now, you can add numerous products that can maximize the benefits of solar powered products and make them as convenient as any other conventional system but with the addition of environmental and economic benefits. Click on the FAQ link to the right for more information.
Energy Efficient Products
$300 Tax Credit
Energy Efficient Gas Water Heaters
Consumers who purchase and install specific products, such as energy-efficient windows, insulation, doors, roofs, and heating and cooling equipment in the home can receive a tax credit of up to $500 beginning in January 2006. More details: energy.gov/taxbreaks