Understanding The Investment Tax Credit

There are many different deductions, or tax credits that are available from the federal government. One such deduction is the investment tax credit. This tax credit rewards people who invest in environmentally friendly methods of power for their homes. Because going solar can be expensive at first, the tax credit helps offset some of the costs. While solar power systems can pay for themselves, it can take years for this to occur. Other energy efficient items that may be covered under this credit are solar water heaters and fuel cells.

The solar investment credit, or ITC as it is abbreviated, so far is set in place until December 31, 2016. So you still have time to make the change to solar power gradually. Some people start with thin cells rather than bulky panels and add more as time goes on rather than getting off the grid all at once. There are options for homeowners now that are hardly discernible, unlike some of the bulky rooftop solar panels of the past. There are some rules and requirements for the ITC, as there are with all federal tax credits.

There is a 30 percent ITC for commercial and home solar power system installations. The use of wind energy and geothermal pumps may also qualify for the ITC. This credit has eliminated the $2000 cap with the 30 percent rule. You get a credit equivalent to 30 percent of your qualifying solar investment. As if saving on your power bill wasn't enough, this is another fantastic reason to consider utilizing solar power for your home or business. Small business owners who use solar power can be a fantastic example for the entire community.

The investment tax credit is really quite simple. Install and use a solar power system for your home or business and receive a 30 percent tax credit on the expense. Solar power can lower your heating and cooling bill, help the environment, and eventually get you off the grid altogether. If your system is large enough there are storage batteries which hold a massive amount of energy so you still have full power when the sun is not shining. Using solar or wind power to leave the grid is a big goal, so most people start off small with a beginner rooftop system or other small solar power configuration.

 






 

 

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Tax Credit News:

 

Congress waivers on massive energy tax credit, Logan County wind farm . - Lincoln Courier

OregonLive.com
Congress waivers on massive energy tax credit, Logan County wind farm .
Lincoln Courier
By Nathan Woodside Logan County could be dealt a billion-dollar blow if Congress fails to extend the federal wind energy production tax credit (PTC). The American Wind Energy Association on Thursday said the credit is not included in payroll tax .
End of tax credit a blow for wind power industryChicago Tribune
Congress's failure to renew tax credit for wind production has ramifications .OregonLive.com
Congress deals major blow to wind power industryBoston Herald
Inside Climate News -Worthington Daily Globe -Pueblo Chieftain
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Tax Tip: 11 key points about the Child Tax Credit
The Child Tax Credit is available to eligible taxpayers with qualifying children under age 17. The IRS would like you to know these eleven facts about the child tax credit...


The $13000 adoption tax credit is back! | Parents Rights Blog
The adoption tax credit is back again this year, meaning taxpayers can claim up to $13360 for each child they have adopted in the past six years on their 2011 tax returns this year. Via money.cnn.com. Advertisement ...


Administration touts health care tax credits for small businesses - News-Medical.net

Entrepreneur
Administration touts health care tax credits for small businesses
News-Medical.net
White House officials on Thursday highlighted a budget proposal to spend $14 billion over a decade to expand a health care tax credit for small businesses, a move they say would benefit about 4 million workers this year.
A Proposal to Expand Health-Care Tax Credits for Small BusinessesEntrepreneur
Health insurance tax credits in Obama planThe Union Leader
Obama expands budget, simplifies small business health care tax creditsKPLC-TV
Examiner.com -eMaxHealth
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IRS Offers More Info on Veteran Tax Credit
Remember the newly expanded tax credit for hiring veterans that was passed last year? The IRS has finally issued more guidance on the credit. The Returning Heroes and Wounded Warriors Work Opportunity Tax Credits was part of the VOW to Hire Heroes Act of 2011, which was announced on Veterans Day last year. The credit ...


Why Some Tax Units (households) Pay No Income Tax - Auburn Journal

Auburn Journal
Why Some Tax Units (households) Pay No Income Tax
Auburn Journal
The other half are nontaxable because tax expenditures - special provisions of the tax code that benefit selected taxpayers or activities - wipe out tax liabilities and, in the case of reefundable credits, result in net payments from the government.

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The $13,000 adoption tax credit is back!
An adoption tax credit that brought huge refunds to many unsuspecting families last year is back...


 

 

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