Category » Energy Policy Act of 2005

There were 8 questions found in this category:

1. What about systems that have been purchased but not installed?
   Should you sell/buy a system and even start work this year, but do not complete “original installation” of the system or “place it in service” until January 1, it will qualify for the credit. source: FLASEIA (Florida Solar Energy Industries Association)
2. Which technologies qualify for the tax credit?
   Photovoltaics, solar water heaters, concentrated solar power, and solar hybrid lighting technologies qualify for a 30% federal tax credit as stipulated in the Energy Policy Act of 2005.
3. Can I apply this credit to used equipment going into a new installation?
   Similarly, can this credit be applied to capacity additions? (i.e. I have a 1.5 kW system, and I want to add 1.5 kW more.) This is not entirely clear at present. However, the language would suggest that both scenarios are allowed – the credits apply to the amount of expenditure on solar energy ...
4. Can this credit be applied to capacity additions?
   (i.e. I have a 1.5 kW system, and I want to add 1.5 kW more.) Similarly, can I apply this credit to used equipment going into a new installation? This is not entirely clear at present. However, the language would suggest that both scenarios are allowed – the credits apply to the amount of expen ...
5. Are there any changes to the business solar tax credit other than percent?
   The business solar tax credit will continue to be administered before; all that has changed is the percentage increase to 30%. Operation and legal technicalities of the business credit are well established. An accountant or tax professional familiar with these rules should be able to inform you ...
6. How does the credit work with existing state credits or utility incentives?
   The credit applies to the basis remaining after any state or utility incentives available to the taxpayer have been taken. Example: a $10,000 system that receives $5,000 in state incentives would be eligible for a $1,500 Federal credit. source: FLASEIA (Florida Solar Energy Industries Association)
7. How does the residential cap on expenditures operate?
   An individual can take the 30% credit up to a $2,000 cap for photovoltaics, while also taking the credit up to a separate $2,000 cap for solar water heating. The credit may be carried over to future years. Business entities have no cap on the total credit amount, provided they have a sufficient ...
8. What are the dates of the credit? Is it applicable to existing systems?
   The credits become available for systems that are “placed in service” – activated between January 1, 2006, and December 31, 2007. If the installation is on a new home, the “placed in service” date is the date of occupancy by the homeowner. Systems that have already been installed are not eligibl ...