No need to worry about your electricity bill anymore (maybe). More and more homeowners are employing solar energy in order to save themselves some money. It could potentially save you a lot, as well be amounting to an environmentally friendly option. Tax rebates, freedom from sales tax on solar panel-related equipment and more: Imagine it. What’s not to love?
Even the federal government is getting on board, trying to create tax incentives to people who use energy more responsibility in the past five years. A prime example and the first of its kind was the Energy Policy Act in 2005. You could earn it simply by choosing renewable over non-renewable energy. If you’ve been a homeowner long enough, you’ll realize that some big changes have gone into effect, as there used to be very few incentives for homeowners to make the switch to renewable energy.
Homeowners can receive a tax credit of up to $2000 or 30% of what they invested in purchasing solar panels as a result of the Energy Policy Act of 2005 alone. It was extended back in 2008 to cover almost any home in the United States that primarily makes use of solar energy, although it originally only benefited homes in existence from 2005-2007. Homes built through January 2009 were included.
Other acts have been subsequently passed, such as the Emergency Economic Stabilization Act, passed in 2008. Use of solar energy, including solar panels, now provides even more tax incentives. It both extends the Energy Policy Act of 2005 and also provides more of a tax credit benefit for home improvements done in 2009 or later.The $2000 tax credit maximum is removed by this bill in favor of the 30% solar energy investment rebate. Retroactivity in certain situations is also one of its features.
Individual states also may have state tax incentives for using solar panels on your home. Some of these states include New Mexico, Florida, Vermont, Minnesota, Washington, New York, Texas, Virginia, Arizona and California. While some states have tax rebates, others carry no sales tax on solar panel equipment costs. It is certainly worth looking into, if you’re considering going the environmentally friendly route. Solar panels can be installed by professionals or can be purchased in do-it-yourself kits. Either way, the tax incentives are well worth the switch.
Looking for your dream home in Colorado, but can’t decide if you want to buy real estate in Broomfield California or purchase Nederland real estate? You may consider letting a real estate agent help you in your property search.
