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Rebates The State of California
has numerous rebate incentive programs for owners of solar photovoltaic, wind
turbine and fuel cell electric energy systems. Eligible system sizes range
from 1,000 watts up to 1 million watts. Rebates programs are administered by
your electric utility provider. The amount of the cash incentive depends on
system size, the type of technology used, the project type (Retrofit or New
Construction) and if the system is for a residential, commercial,
governmental or non-profit entity. Rebate payments can be in the form of a
one-time payment (EPBB), or payments made over the course of a 60 month
period (PBI). The type of payment (EPBB or PBI) is usually dependant on the size
of the system. Starting on January 1, 2010, all systems that are equal to or
greater than 30,000 watts in size must use the PBI payment method. Rebate payments are made after the system is
installed and inspected to verify that it conforms to its design objective
and after it has been interconnected to the electric grid. For solar photovoltaic electric systems, all
utilities require the system to generate electricity to offset the consumer's
on-site electrical load, or less. However, expected production may not be
more than the historical or expected electrical needs of the consumer. State and Federal
Taxes State Property Tax
Exclusion State Board of Equalization, Property and
Special Taxes Department; California State Revenue and Taxation Code, Section
73. “If a property owner
installs an active solar energy system, the system will not be assessed.” Section 73 will sunset on January 1, 2010,
unless legislation is passed that extends this date. If section 73 sunsets,
this will not affect any solar energy system that was previously not assessed
while the exclusion was in effect. Any active solar energy system that was
excluded under this section will remain excluded until the property undergoes
a change in ownership and is reassessed. Federal Incentives Business Solar Investment Tax Credit (IR Code §48). The bill extends the 30% Investment Tax Credit (ITC)
for solar energy property for eight years through December 31, 2016. The bill
allows the ITC to be used to offset both regular and alternative minimum tax
(AMT) and waives the public utility exception of current law (i.e., permits
utilities to directly invest in solar facilities and claim the ITC). The
five-year accelerated depreciation allowance for solar property is permanent
and unaffected by passage of the eight-year extension of the solar ITC. Residential Solar Investment Tax Credit (IR Code §25D). The bill extends the 30% ITC for residential solar
property for eight years through December 31, 2016. It also removes the cap
on qualified solar electric property expenditures (currently $2,000),
effective for property placed in service after December 31, 2008. The bill
allows individual taxpayers to use the credit to offset alternative minimum
tax (AMT) liability, and to carry unused credits forward to the next
succeeding taxable year. The $2,000 monetary cap on solar water heating
property was not lifted and remains in effect. Rebate Incentive is
Nontaxable According to Section 136 of the IRS Code, energy
conservation subsidies provided by public utilities, either directly or
indirectly, are nontaxable: “Gross income shall not include the value of any
subsidy provided (directly or indirectly) by a public utility to a customer
for the purchase or installation of any energy conservation measure.” Applicable IRS Forms IRS f3468 - Investment Tax
Credit IRS f5695 - Residential
Energy Efficient Property Credit IRS f4562 - Depreciation
and Amortization State of California Form 3885 - Corporation
Depreciation and Amortization To learn about what Renewable Technologies, Inc. can to reduce your electric utility
bill while improving the environment, contact us at sales@renewable.com
or call 1-209-267-5225. If you are interested in reading more about
solar incentives and policies go to the
Database of State Incentive for Renewables &
Efficiency www.dsireusa.org. |
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1-800-550-SOLAR (7652) — Renewable Technologies, Inc. ©
2004 |
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