How can I earn money using alternative energy? New financial incentives are available to homeowners and businesses for a number of alternative energy and energy efficiency measures.
Alternative Energy Tax Credits Using Solar and Renewables For Residential Homes
For new and existing homes, alternative energy tax credit limitations have been removed by some country's governments for many alternative energy systems including geothermal heat pumps, solar water heaters, solar photovoltaics, small wind energy, fuel cells and microturbine systems. Qualified products can receive an alternative energy tax credit equal to 30 per cent of their cost.
Some examples of alternative energy tax credit qualified products are:
Alternative Energy Tax Credits For Existing Homes - Energy Efficiency
Qualified products receive an alternative energy tax credit of 30% of their cost, up to the $1,500 limit.
Some examples of alternative energy tax credit qualified products are:
Alternative Energy Tax Credits For Commercial Buildings
Owners or tenants (or designers, in the case of publicly-owned buildings) of new or existing commercial buildings may qualify for a tax deduction of up to $1.80 per square foot. The buildings must be constructed or reconstructed to save at least 50 per cent of the heating, cooling, water heating, and interior lighting energy cost of a building that meets ASHRAE Standard 90.1-2001.
Each of the three energy-using systems of the building — the envelope, interior lighting system, and heating and cooling system — is eligible for one third of the incentive ($0.60/ft) if it meets its share of the whole-building savings goal.
Software meeting federal tax laws for accuracy and consistency determines projected energy savings. Third party inspectors review the plans and verify building parameters to determine compliance.
Alternative Energy Tax Credits For Businesses
The business investment tax credit varies from 10% to 30% depending upon they type of system installed. This alternative energy tax credit is possibly available to businesses that purchase solar water heaters, solar photovoltaics, small wind energy, geothermal heat pumps, fuel cells and microturbine systems.
Combined Incentives For Alternative Energy Tax Credits
In many cases, multiple tax incentives may be claimed. In the case of a new home for example, the builder may claim credit for the high efficiency home and the homeowner may claim tax credits for solar hot water, photovoltaic, and fuel cell systems. Other financial incentives, such as local utility rebates, further reduce the cost of building or owning a solar and energy efficient home.