The Federal Government offers substantial incentives for consumers to take advantage of purchasing photovoltaic (PV) systems.
The Emergency Economic Stabilization Act of 2008 (P.L. 110-343) included, extended and/or amended many consumer tax incentives originally introduced in the Energy Policy Act of 2005 (EPACT). The bill also included tax incentives for businesses, utilities, and government. For a complete summary of the tax incentives included in the bill, read the summary of Energy Tax Incentives in The Emergency Economic Stabilization Act of 2008.
Tax credits were further enhanced in February 2009 by The American Recovery and Reinvestment Act of 2009, which removed the maximum credit amount for all eligible renewable energy technologies (except fuel cells) placed in service after 2008.
A tax credit offers significantly more financial savings to the buyer than a tax deduction. A tax deduction is subtracted from the income before tax liability is computed. The tax credit is subtracted directly from the total tax liability. This means that a tax credit offers more savings to the consumer than the tax deduction. For a comparison, a tax credit of $1,000 for a taxpayer in the 28% tax bracket is the equivalent of a tax deduction of $3,751.
For residential PV systems, consumers who install solar electric systems can receive a 30% tax credit for systems placed in service from January 1, 2006 through December 31, 2016. A tax credit cap of $2,000 applies in 2006-2008; beginning January 1, 2009 the tax credit cap no longer applies.
Click here for a four-page Q&A on the revised federal solar tax incentives, prepared by Solar Energy Industries Association. (Note that this document was published in October 2008.)
The 2006 Florida Renewable Energy Technologies and Energy Efficiency Act, signed into law on June 19, 2006, provides consumers with rebates and tax credits for photovoltaic systems.
The purchase of photovoltaic systems covered under the Florida Renewable Energy Technologies and Energy Efficiency Act qualifies the consumer to receive a substantial rebate. The rebate is based on the manufacturer’s power output rating of the modules. The amount is $4.00 per Watt with a cap of $20,000 for residential photovoltaic systems and a $100,000 cap for commercial, publicly owned, or private not-for-profit photovoltaic systems.
For a list of approved modules, please visit FSEC certified modules.
To find a list of photovoltaic systems that qualify for the tax credits
and rebates, follow this link to certified