The Emergency Economic Stabilization Act of 2008, which was signed into law on October 1, 2008, contains renewable energy legislation which is great news for our solar customers. Not only was the 30% commercial solar investment tax credit extended through 2017, but the same tax credit was also extended to residential installations.

Under this legislation the previous $2,000 cap for residential solar installations was eliminated. This means that, as of January 1, 2009, the purchase of a residential solar electric system makes you eligible for a tax credit equal to 30% of the cost of your solar system, including installation. See full information on how you may use the tax credit.

If the federal tax credit exceeds your tax liability, the excess amount may be carried forward to the succeeding taxable year. If you do not earn enough to pay taxes to the U.S. Treasury, you may apply for 30% of the cost of the solar or wind system in the form of a Renewable Energy Grant.

Courtesy of Database of State Incentives for Renewables & Efficiency