This is my understanding of the current status. A commercial applicant can take it as an upfront grant or an end of year tax credit. A residential applicant can only use it as a tax credit. I am not an expert on the subject matter and am just passing the info along for your use. See below:
"The Federal American Recovery and Reinvestment Act (ARRA) of 2009 Description: Under present law, a federal-level investment tax credit (ITC) is available to help consumers purchase small wind turbines for home, farm, or business use. Owners of small wind systems with 100 kilowatts (kW) of capacity or less can receive a credit for 30% of the total installed cost of the system. Current Status: The ITC, written into law through the Emergency Economic Stabilization Act of 2008, is available for equipment installed from October 3, 2008 through December 31, 2016. The value of the credit is now uncapped through the American Recovery and Reinvestment Act of 2009. If the federal tax credit exceeds the tax liability, the excess amount may be carried forward to the succeeding taxable year. Current understanding: The Federal residential solar & wind tax credit = (system cost - any other grant) x 30%. For Non-residential: The American Recovery and Reinvestment Act of 2009 (H.R. 1), enacted in February 2009, created a renewable energy grant program that will be administered by the U.S. Department of Treasury. This cash grant may be taken in lieu of the federal business energy investment tax credit (ITC). The grant is equal to 30% of the basis of the property for small wind turbines. Eligible small wind property includes wind turbines up to 100 kW in capacity. Sources: www.dsireusa.org and www.awea.org Note: The American Recovery and Reinvestment Act of 2009 (H.R. 1) allows taxpayers eligible for the federal business energy investment tax credit (ITC) to take this credit or to receive a grant from the U.S. Treasury Department instead of taking the business ITC for new installations. The new law also allows taxpayers eligible for the renewable electricity production tax credit (PTC) to receive a grant from the U.S. Treasury Department instead of taking the PTC for new installations. (It does not allow taxpayers eligible for the residential renewable energy tax credit to receive a grant instead of taking this credit.) Taxpayers may not use more than one of these incentives. If an entity receives a grant and has previously received the business ITC or the PTC, the credit will be recaptured through an increase in taxes during the year in which the grant is awarded by the amount of the credit taken in previous years. Receiving a credit in the past does not reduce the amount of the grant. The grant is not included in the gross income of the taxpayer. Grants are available to eligible property placed in service in 2009 or 2010, or placed in service by the specified credit termination date, if construction began in 2009 or 2010". Roger Dixon Certified Wind Site Assessor Skylands Renewable Energy, LLC 908.337.2057 cell 908.730.6474 fax [email protected] www.skylandsre.com Note: The information contained in this communication is confidential, may be attorney-client privileged, may constitute inside information, and is intended only for the use of the addressee(s). It is the property of the sender of this e-mail. If you receive this e-mail in error, do not review, disseminate, or copy it. Unauthorized use, disclosure, or copying of this communication or any part thereof is strictly prohibited and may be unlawful. If you have received this communication in error, please notify the sender immediately by return e-mail and destroy this communication and all copies thereof, including all attachments. -----Original Message----- From: [email protected] [mailto:[email protected]] On Behalf Of jay peltz Sent: Sunday, May 03, 2009 7:51 PM To: RE-wrenches Subject: [RE-wrenches] federal credit clarification HI all, I"m looking for some clarification about the way the 30% for non commercial tax credit/refund is currently working? I think that commercial is now not a tax credit but an actual refund? So anybody up to date on this? thanks, jay peltz power _______________________________________________ List sponsored by Home Power magazine List Address: [email protected] Options & settings: http://lists.re-wrenches.org/options.cgi/re-wrenches-re-wrenches.org List-Archive: http://lists.re-wrenches.org/pipermail/re-wrenches-re-wrenches.org List rules & etiquette: www.re-wrenches.org/etiquette.htm Check out participant bios: www.members.re-wrenches.org _______________________________________________ List sponsored by Home Power magazine List Address: [email protected] Options & settings: http://lists.re-wrenches.org/options.cgi/re-wrenches-re-wrenches.org List-Archive: http://lists.re-wrenches.org/pipermail/re-wrenches-re-wrenches.org List rules & etiquette: www.re-wrenches.org/etiquette.htm Check out participant bios: www.members.re-wrenches.org
