[RE-wrenches] federal credit clarification

[roger dixon]

This is my understanding of the current status.  A commercial applicant can
take it as an upfront grant or an end of year tax credit.  A residential
applicant can only use it as a tax credit.  I am not an expert on the
subject matter and am just passing the info along for your use.  See below:

"The Federal American Recovery and Reinvestment Act (ARRA) of 2009

Description: Under present law, a federal-level investment tax credit (ITC)
is available to help consumers purchase small wind turbines for home, farm,
or business use. Owners of small wind systems with 100 kilowatts (kW) of
capacity or less can receive a credit for 30% of the total installed cost of
the system.

Current Status: The ITC, written into law through the Emergency Economic
Stabilization Act of 2008, is available for equipment installed from October
3, 2008 through December 31, 2016. The value of the credit is now uncapped
through the American Recovery and Reinvestment Act of 2009.  If the federal
tax credit exceeds the tax liability, the excess amount may be carried
forward to the succeeding taxable year.

Current understanding: The Federal residential solar & wind tax credit =
(system cost - any other grant) x 30%.

For Non-residential: The American Recovery and Reinvestment Act of 2009
(H.R. 1), enacted in February 2009, created a renewable energy grant program
that will be administered by the U.S. Department of Treasury. This cash
grant may be taken in lieu of the federal business energy investment tax
credit (ITC).  The grant is equal to 30% of the basis of the property for
small wind turbines. Eligible small wind property includes wind turbines up
to 100 kW in capacity.
 
Sources: www.dsireusa.org and www.awea.org
 
Note: The American Recovery and Reinvestment Act of 2009 (H.R. 1) allows
taxpayers eligible for the federal business energy investment tax credit
(ITC) to take this credit or to receive a grant from the U.S. Treasury
Department instead of taking the business ITC for new installations. The new
law also allows taxpayers eligible for the renewable electricity production
tax credit (PTC) to receive a grant from the U.S. Treasury Department
instead of taking the PTC for new installations. (It does not allow
taxpayers eligible for the residential renewable energy tax credit to
receive a grant instead of taking this credit.) Taxpayers may not use more
than one of these incentives. If an entity receives a grant and has
previously received the business ITC or the PTC, the credit will be
recaptured through an increase in taxes during the year in which the grant
is awarded by the amount of the credit taken in previous years. Receiving a
credit in the past does not reduce the amount of the grant. The grant is not
included in the gross income of the taxpayer.  Grants are available to
eligible property placed in service in 2009 or 2010, or placed in service by
the specified credit termination date, if construction began in 2009 or
2010".

Roger Dixon
Certified Wind Site Assessor
Skylands Renewable Energy, LLC
908.337.2057 cell
908.730.6474 fax
roger.dixon at skylandsre.com
www.skylandsre.com


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-----Original Message-----
From: re-wrenches-bounces at lists.re-wrenches.org
[mailto:re-wrenches-bounces at lists.re-wrenches.org] On Behalf Of jay peltz
Sent: Sunday, May 03, 2009 7:51 PM
To: RE-wrenches
Subject: [RE-wrenches] federal credit clarification

HI all,

I"m looking for some clarification about the way the 30% for non  
commercial tax credit/refund is currently working?

I think that commercial is now not a tax credit but an actual refund?

So anybody up to date on this?

thanks,

jay

peltz power
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