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On August 8th, 2005 President Bush signed a new energy
bill that includes support for solar energy and other renewable, sustainable
technologies. Solar industry leaders say the legislation will help cut the
cost of solar power in half, create 20,000 new American jobs, and save U.S.
consumers more than $12 billion on electricity and natural gas bills in the
next decade.
Solar Power Provisions:
- Households- For the first time since 1985, the
energy bill gives homeowners a federal tax credit to install solar heating
systems. Homeowners will receive a tax credit worth 30% of the solar
system cost, capped at $2,000.
- Businesses- Businesses also benefit from the new
energy bill! Businesses that purchase solar equipment will also receive a
tax credit worth 30% of the system cost, with no cap on the amount of
credit.
- Tax- Credit Specifics-
The solar technologies eligible for the tax credit include photovoltaics
(PV), solar water heaters (excluding pool heating), concentrating solar
power and solar hybrid lighting.
The credits will be available for solar systems that are placed in service
between Jan. 1, 2006 and Dec. 31, 2007. Systems that have already been
installed are not eligible.
Homeowners who take the 30% credit up to $2,000 for PV may also enjoy a
separate credit of up to $2,000 for solar water heating.
The federal credit applies to the basis remaining after any state or
utility incentive have been taken advantage of. For example, a $10,000
project that receives $5,000 in state incentives would be eligible for a
$1,500 federal credit.
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