The Solar Energy Payoff
By LAUREN HEPBURN
Updated 11:36 AM EDT, Tue, Jun 9, 2009
How does this sound -- lower energy bills, reduced air pollution, indoor comfort, fewer emissions and getting paid by the government? Well that is what is being offered to local residents thanks to the American Recovery & Reinvestment Act of 2009.
In attempt to help the on-going energy crisis, the government is offering a 30-percent tax credit for consumers who buy solar-powered products.
Here is how it works. Buy solar-powered windows, doors, insulation, roofs, heating and ventilation systems, water heaters and other products to improve your home and get 30-percent of the cost -- up to $1500.
The American Recovery and Reinvestment Act is an extension of the Energy Policy Act of 2005.
Tax credits are “generally more valuable than an equivalent tax deduction because a tax credit reduces tax dollar-for-dollar, while a deduction only removes a percentage of that tax that is owed,” according to the Department of Energy.
Tax credits actually lower the tax amount that is owed to the government.
Solar energy is better for the environment then other non-renewable energy sources and lowers emissions, air pollution, and lower bills, says the Department of Energy.
To receive the incentive, the improvements must be placed in service between January 1, 2009 and December 31, 2010.
The tax incentive is only for a taxpayer’s main residence, however there are a few exceptions to this rule.
Not only will you receive money from the government up front but the solar powered investments can save money on your energy bills.
As an added bonus, you are also helping the environment -- not too shabby!
First Published: Jun 8, 2009 3:58 PM EDT
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