[PeakOiler]

Well, I procrastinated filing my tax return this year, but just finished checking the IRS web site for what form I needed to fill out to receive the federal tax credit for the solar electric system I installed to power a SunDanzer freezer.

I spent $911.99 on the 125W panel, charge controller, wiring, and battery and thirty percent of that is $272.60. That's what I can deduct from my taxable income.

[tsakach]

Nice!

Note that this is a dollar-for-dollar tax credit, rather than a deduction from taxable income.

In addition to credits for renewable energy, you may also be eligible for additional tax credits for the following energy efficiency improvements:

Automobile Tax Credits
Consumers who buy or lease a new hybrid gas-electric car or truck are eligible for, and can receive, an income tax credit of $250-$3,400.

Home Energy Efficiency Improvement Tax Credits
Consumers who purchase and install specific products, such as energy-efficient windows, insulation, doors, roofs, and heating and cooling equipment in the home can receive a tax credit of up to $500 beginning in January 2006.

Business Credits
Businesses are eligible for tax credits for buying hybrid vehicles, for building energy- efficient buildings, and for improving the energy efficiency of commercial buildings (as outlined in the Energy Policy Act of 2005).

http://www.energy.gov/taxbreaks.htm

[Tyler_JC]

Some states like California, Oregon, and Connecticut offer generous subsidies to solar panel installation. These include property tax breaks, income tax deductions, accelerated write offs, and even direct cash grants!

While the federal government has lagged behind in terms of supporting the solar power industry, some of the more progressive states have taken action.

[PeakOiler]

$this->bbcode_second_pass_quote('tsakach', 'N')ice!

Note that this is a dollar-for-dollar tax credit, rather than a deduction from taxable income.