That’s right, tax credits are now being offered for solar thermal. And for photo-voltaics (PV.) Here is how it works. Buy a solar water heater system for your home or place of business. Let’s say the system costs $5000 to install. Once it is up and running (prior to December 31, 2007), you will be on your way to a 30% ($1500) tax credit! Not a deduction – a credit! Here are the small print details (we’ll even make them big enough to read.) The cap on the tax credit for a residential system is $2000 (meaning you can get a system costing up to $6000 and still receive the full credit), no cap for businesses. You can install a solar thermal system and claim your credit.
You can also install a photo-voltaics system and get another credit of 30%, also with a cap of $2000 for residences and no cap for businesses. The dates of validity for the tax credits are from the beginning of 2006 through the end of 2007. You can carry over a credit into the next year. Alas, cruelly enough, solar pool heaters do not count. Some states have incentives themselves (try www.dsire.org or www.seia.org to check out all the incentives available.) The deal with those is that the federal tax credit counts for the amount paid after any state incentives have been applied. This means, business or home, now is the time! Literally, there has never been a better time to install a solar thermal system. (See a brief history and Interesting facts for more information on why now is the time.)