Very soon, your electricity bill could take a permanent dip, potentially. In order to save money, homeowners are increasingly turning to solar energy. If you want to be both environmentally friendly and save some money, solar panels could help you achieve both. This could include tax rebates, avoiding sales tax on solar panel installation expenses and more. You’ve got to love it, right?
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.
You as a homeowner can now cash in a tax credit of up to $2000 or 30% of what you’ve invested in solar panel installation and equipment costs as a result of the Energy Policy Act of 2005 alone. While only homes that primarily made use of solar energy that were in existence from 2005-2007 were eligible to be covered, it was extended in 2008. You’re good to go if your home was built up through January 2009.
In addition to this act, in 2008 the Emergency Economic Stabilization Act was passed. It provides even more tax incentives for using solar energy, including panels. While it extends the Energy Policy Act of 2005, it also adds more credit for people who intend to do home improvements in 2009 or beyond. This bill removes the $2000 tax credit maximum in favor of the 30% rebate on investments in solar energy. In some instances, it is even retroactive.
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 Virginia or purchase Nederland real estate? You may consider letting a real estate agent help you in your property search.