Home Wind Turbine Cost Reduced By Tax Credits

Recently the Emergency Economic Stabilization Actturbines since 1985, and industry members believe
of 2008, H.R. 1424, was passed by Congress thatthe credit could grow the U.S. wind power market by
includes a new federal investment tax credit to assist40% or more annually. And along with the upcoming
the public in offsetting the wind turbine cost for theirequipment certification scheme, it will help secure it as
homes, businesses or farms.  Without any delay,the global leading market.
president Bush signed the bill into law.To put the industry on equal grounds with the
Recently the Emergency Economic Stabilization Actphotovoltaic (PV) solar industry, the AWEA, and its
of 2008, H.R. 1424, was passed by Congress thatmembers have long requested a 30% federal
includes a new federal investment tax credit to assistinvestment incentive for small wind turbines 100kW
the public in offsetting the wind turbine cost for theirand smaller. And now their persistence has paid off.
homes, businesses or farms.  Without any delay,Since the two industries share the same renewable
president Bush signed the bill into law.energy market, the wide legislation also expands on a
The Act offers a federal tax credit for 30% of thesimilar credit for the PV solar industry that was first
total installed cost of any wind power system with aenacted in 2005. Domestic PV solar systems now
100 kilowatt capacity or less, but the credit will notreceive a 30% credit, limited to $4,000, and
exceed $4,000. The limitation of the Act is that itcommercial installations can get the same, but
only applies to new systems installed from 3 Octoberuncapped, credit.
2008 through to December 2016, so any currentSo how does this act affect anyone who has
systems will get no tax relief.  In addition, for homeinstalled their own system?  By the looks of things,
wind turbines, the credit is further limited to thediy renewable energy enthusiasts can also enjoy the
lesser of $4,000 or $1,000 per kW of capacity.federal tax credit as long they have proof of all
America, who has typically lead the worldwide smallinstallation costs and the date they were incurred.
wind turbine market recently begun to feel pressureBut, it is best to get sound legal advice first to help
from other nations that offered enticing incentivesyou maximize any tax credit due.
for small renewable energy systems. So the newWith the new tax credit, coupled with potential
legislation was warmly welcomed by a Small Windstate-side credits, we cannot see a better time for
Advocate of the American Wind Energy Associationanyone to invest in their own renewable energy
(AWEA), Ron Stimmel, who said:system at home and offset the wind turbine cost.
"We thank Congress for recognizing and supportingWhether this means getting an expensive
small wind systems as an important contributorprofessionally installed solar/wind power hybrid, or
toward energy security and a cleaner environment.learning to do it yourself, potential electricity savings
This credit will help individuals cut their electric billsare a decision away. At the end of the day the
while combating global warming in a tangible way."choice is yours.
This bill is the first federal incentive for small wind