With any tax incentive you come across, be sure to read it first. Some tax incentives only apply to commercial solar projects. What you want is tax information for residential solar projects.
Check out the federal government form 5695. With this, you can let them know your costs for installing your residential solar power system. If you are lucky and live in the right state or country, you might even get as much as 30 percent as a tax credit for total costs up to $1,500 for existing homes. This is available all the way through 2010 for home improvements as well. You might also claim a credit for a solar hot water heater system so long as it is in your residential solar power plans. The largest credit amount you can get is $2,000.
They just recently removed the $2,000 cap for solar hot water heaters. Nevertheless consumers who use solar hot water heating can still claim the full 30 percent of the system’s cost as a tax credit. This also applies to solar panels provided they are built to comply with the latest electrical and fire safety codes.
Your solar system and hardware costs qualify for this tax credit. The cost of your residential solar kits including the equipment and the hardware can be claimed for. Those DIY residential solar energy system builders can get more benefits as the costs are less if you know where to shop. This way you get more benefits from the tax credit system this way.
Each state also has its own set of tax credits and incentives for residents who invest in solar electricity projects. A database was set up to catalog these incentives for renewable energy sources. It is called DSIRE (Database for State Incentives for Renewables and Efficiency). Check it out at www.dsireusa.org.
Taking a look at California for example, the fine city of Sacramento has established a residential energy efficiency loan program for local residents who can now defer their home improvements costs if they involve renewable energy sources. If you are a property owner, you can benefit from one of these loans at good interest rates (just 8.5 percent).
Why not take a look see what your local government is offering you in relation to incentives to go green. Make use of these tax incentives and you might find that your residential solar power for homes system has become a fantastically affordable option.
Now you can take some time out to discover 125 secrets how you can save money by going green!
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