With any tax incentive you come across, be sure to read it first. Some tax incentives only apply to commercial solar projects. What you want is tax information for residential solar projects.
Don’t forget to talk with the federal government, and ask them for form 5695. This will allow you to tell them your costs for installing a residential solar power system. If you live in certain states or countries, you may get a 30 percent tax credit for your costs, up to a total of $1,500 for existing homes. This is on offer all the way through 2010 for major home improvements as well. You could also claim solar hot water heater system credit, as long as the system is found in your residential solar power plans. The most of a credit amount you can get is $2,000.
Recently, the $2,000 cap was removed for solar hot water heaters. Consumers who use solar hot water heating can claim the full thirty percent of the cost of the system as a tax credit. This unlimited amount also applies to solar panels systems as long as they comply with electrical and fire safety codes.
Costs that qualify for this tax credit include your solar system and hardware costs. Therefore, you can claim for the cost of your residential solar kits including the equipment and the hardware you will need to build the full system. DIY residential solar power system builders can benefit from the costs being less if you shop for your components wisely. You will get more benefit of the tax credit this way.
Every U.S. state has its own set of tax credits and incentives for residents who invest in solar power projects. You can access a great solar power tax credits database online that catalogs renewable energy source incentives all over the U.S. It is called DSIRE (Database for State Incentives for Renewables and Efficiency) and you can find it at www.dsireusa.org.
Taking a look at California for example, the fine city of Sacramento has established a residential energy efficiency loan program for local residents who can now defer their home improvements costs if they involve renewable energy sources. If you are a property owner, you can benefit from one of these loans at good interest rates (just 8.5 percent).
It doesn’t hurt to look and see what your state and federal government is willing to do for you when it comes to saving the planet. Use tax incentives to turn your residential solar power system into an affordable proposition.
Now you can take some time out to discover 125 secrets how you can save a lot of money by going green!
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