Now is the Time To Buy Solar: Tax Credits and State Rebates Available
Breaking News: Federal Investment Tax Credit for Solar Extended and Increased
The major changes in the new law:
* Extension of the Commercial ITC at 30% thru end of 2016
* Expansion of the Residential tax credit to 30% UNCAPPED effective 2009, and extension thru end of 2016
* Both Commercial and Residential now have AMT relief
Long-term Extension of the Residential Solar Investment Tax Credit.
The bill extends the credit for residential solar property for 8 years through 2016. It also
removes the cap on the credit (currently $2,000), effective for solar electric property
placed in service after December 31, 2008. The bill allows individual taxpayers to use
the credit to offset AMT liability, and to carry unused credits forward to the next
succeeding taxable year. Thus, individuals who install residential solar electricity or
heating and cooling equipment in the U.S. will receive a credit against their income tax
liability (including AMT) in the amount of 30 percent of the installed cost, including
equipment and labor. The estimated cost of this proposal is $1.294 billion over 10 years.
Long-term Extension of Business Solar Investment Tax Credit
Long-term Extension of Business Solar Investment Tax Credit
The bill extends the 30 percent investment tax credit for solar energy through 2016.
The bill allows alternative minimum tax (AMT) filers and public utilities to claim the
business solar investment tax credits. (Current law prevents AMT filers and utilities
from claiming these tax credits). Companies and utilities that put solar energy property
in service in the U.S. will receive a credit against their income tax liability (including
AMT) in the amount of 30 percent of the cost of their installation costs, including solar
energy equipment and labor. The estimated cost of this proposal is $1.942 billion over
10 years.
HR 1424 Emergency Economic Stabilization Act of 2008 - Page 43