How To Reduce Your Small Wind Turbine Cost
As of the end of 2008, Congress revised the Emergency Emergency Economic Stabilization Act of 2008, which a includes a provision where households, farms and corporates can now offset a portion of their small wind turbine cost against their tax.
The Act offers a federal tax credit for 30% of the total installed cost of any wind power system with a 100 kilowatt capacity or less, but the credit will not exceed $4,000. The limitation of the Act is that it only applies to new systems installed from 3 October 2008 through to December 2016, so any current systems will get no tax relief. In addition, for home wind turbines, the credit is further limited to the lesser of $4,000 or $1,000 per kW of capacity.
America, who has typically lead the worldwide small wind turbine market recently begun to feel pressure from other nations that offered enticing incentives for small renewable energy systems. So the new legislation was warmly welcomed by a Small Wind Advocate of the American Wind Energy Association (AWEA), Ron Stimmel, who said:
“We thank Congress for recognizing and supporting small wind systems as an important contributor toward energy security and a cleaner environment. This credit will help individuals cut their electric bills while combating global warming in a tangible way.”
This is the first federal tax credit for small wind power systems since 1985, and experts predict the legislation could expand the American wind energy industry by 40 percent or greater each year. And together with the soon-to-be finalized equipment certification system, this will aid in securing the U.S. as the leading market worldwide.
The legislation was brought about thanks to the AWEA’s persistent requests for the the wind power market to be able to compete equally with the solar power industry. The AWEA was determined for small wind turbine owners to receive a 30% tax credit on the cost, provided their systems were no bigger than one kilowatts.
Since the two industries share the same renewable energy market, the wide legislation also expands on a similar credit for the PV solar industry that was first enacted in 2005. Domestic PV solar systems now receive a 30% credit, limited to $4,000, and commercial installations can get the same, but uncapped, credit.
How does the new legislation influence privately made small wind turbines? It looks like do-it-yourself wind power systems can receive some tax incentives, as long as it can be shown when and how much costs were. Just remember, to get professional legal advice to help you enjoy the best tax credit due.
With all these state and federal tax credits for renewable energy homeowners, it makes sense to get your own small wind turbine at home. No matter whether you buy an expensive commercial home wind turbine, or learn to build a cheaper one yourself, the potential for you to save a lot of money on electricity and tax expenses is a decision away. It just requires you to make the right choice.
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