Tax Credits and Grants 2009

Thanks to the American Recovery and Reinvestment Act many existing Tax Credits and Grants for improving energy efficiency or using renewable energy have been improved. Herein, we will review a few of these that apply to commercial and residential properties.

Residential Tax Credits:

  • Residential Renewable Energy Tax Credit—Tax credit for 30% of the total cost with no maximum limit for implementing Solar Water Heat, Photovoltaics, Wind, Geothermal Heat Pumps, or Other Solar Electric Technologies at the primary residence of the taxpayer.

Business Tax Credits:

  • Business Energy Investment Tax Credit—Tax credit for 30% of the total cost with no maximum limit for implementing Solar Water Heat, Photovoltaics, Wind, or Other Solar Electric Technologies. Tax credit for 10% of the total cost with no maximum limit for microturbines or geothermal. The energy property must be operational in the year in which the credit is first taken.

Commercial, Industrial, Agricultural Grants:

  • U.S. Department of Treasury – Renewable Energy Grants—A Grant of 30% of the total cost of qualifying renewable energy systems including Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Solar Thermal Process Heat, Photovoltaics, Landfill Gas, Wind, Biomass, Hydroelectric, Geothermal Electric, Fuel Cells, Geothermal Heat Pumps, Municipal Solid Waste, CHP/Cogeneration, Solar Hybrid Lighting, and Microturbines.

The American Recovery and Reinvestment Act has recently amended theses tax credits and grants to remove caps and in some instances extend the eligible credit period. Specifically for the residential renewable energy credit the eligible date period has been extended to 2016 and the previous $2,000 cap was removed.

The energy efficiency tax credit combined with the energy audit from Central Nebraska Community Services could make finding and fixing energy wasters in your home a very valuable proposition.

Please follow the links, review the information, and talk with your local tax professional about how you could take advantage of these tax credits and grants.