Energy solar
Solar panels seem to be an excellent way to generate less costly electrical power. They seem a good way to heat water, as well as the air inside homes.
Solar panels and the IRS should be friends, since the government purports to be seeking alternative energy sources. The U.S. government should give tax credit to those who invest in solar pannels. But does it?
The value of solar panels in the IRS' eyes is shown in the Energy Policy Act of 2005 for Individuals. In 2006, inflation adjustment figures were given, but the act remains basically the same.
Energy Policy Act of 2005 for Individuals (EPACT) - Summary
Individuals can make energy-conscious purchases, and receive tax benefits for doing so. The law provides tax credits for making your principal residence, which must be in the U.S., more energy efficient. It also gives tax credits for buying specified energy-efficient items, including alternative motor vehicles such as hybrids.
solar pannels, says IRS, will earn tax credits if they are on your main home, and that home is in the U.S.
Most of EPACT remains in effect throughout 2007. Many think it will be renewed or expanded in 2008.
Detail Regarding Solar Panel Tax Credits
The Energy Policy Act of 2005 makes a tax credit available to those who add qualified solar panels to their homes in the U.S. The IRS allows one credit equal to 30 percent of the qualified investment in a solar panel up to a maximum $2,000 credit. The IRS also allows an equal credit for investing in a solar water heating system. You could credit of up to $4,000, $2,000 for solar panels, and $2,000 for solar water heating.
Whether you add solar panels or a solar water heating system, you cannot use any part of it to heat a hot tub or swimming pool.
Solar panels, for IRS tax credit qualification, must be placed in service between December 31, 2005 and January 1, 2008.
State Rebates or Tax Incentives and the IRS
You may find that your solar panels are eligible for state rebates or tax incentives. Your state’s energy office website may have more information on that. If your state or utility does give incentives for installing solar panels, the IRS tax credit applies to the basis remaining after you have taken state incentives.
Example: Your $10,000 solar panel array receives $5,000 in state tax incentives. It would then be eligible for a credit equal to 30 percent of $5,000. Your Federal IRS tax credit would be $1,500.
To locate any tax incentives your state may offer, simply search on the state name with the words solar incentive, without quotation marks.
Wouldn't a Tax Deduction Be Better than a Tax Credit?
Normally speaking, a tax deduction is less valuable to you than the same amount of tax credit. A tax deduction takes away a percentage of the tax you owe the IRS. But a tax credit reduces your tax, dollar-for-dollar.
Solar Panels absent IRS Credits
Even if EPACT had not been signed into law, and the IRS offered no tax credits, solar panel installation could still be a wise investment. Many find that a solar panel array pays for itself within 3 to 4 years. They then save money on electricity for many years with little maintenance.
So, while tax credits are welcome, you may still want to do more research into the potential savings of solar panels.
Disclaimer: Please note that the author is not a tax professional and cannot offer you tax advice. The information above is for educational purposes only.
In this piece of work that I am about to commence with I will discuss whether or not it is wise to convert or at least supplement your home electricity source withsolar pannels This is a worthwhile undertaking because there are many things in this world that are billed as cost or time saving and are actually the opposite when looked at with the right measurements or perspective. So the question is, “is solar power what it claims to be—a clean source of energy that is cheaper than other forms, or is it merely a fad that makes people think that they are being kind to the environment or cost effective.”
So let’s talk about the claims. Number one: a clean source of energy. When you think about it the energy from the sun is about as clean and as natural as you get. There is no chemical reaction that creates an undesirable waste product, there is no burning, no smoke, no extra gases formed. So in this way—yes it is clean. But you also have to look at how you harness that energy. If you have to create undesirable waste such as plastic or other materials that can’t be naturally broken down; or you have to use energy that is not clean such as coal or other fossil fuel burning to create the product than you are at least decreasing the benefit of the clean power supply.
In the case of solar power you do have to create the cells which are made of plastic as well as the wiring and the housings for these cells. So there is some unseemliness to the cleanliness of this power source. The question is, does the benefit outweigh the costs? And in the case of solar power, it does seem that if the units are maintained and last for a long time they eventually will come out ahead. Not like cloth diapers which would, it seems, be a lot better for the environment than their disposable counterparts from huggies. The fact is that the bleach used to clean the cloth diapers is much worse for the environment than the disposable diaper which will eventually (though it takes many years) break down almost entirely.
Second solar power is a cheaper source of energy than other options. This again seems very true on the surface. After all everyone has access to the sun and the sun doesn’t charge does it? But then again the solar cells cost quite a pretty penny so it will take a while to pay them off with the cost savings. And you will have to maintain them paying a technician to come out and fix the units with expensive parts. So is it cost effective? Well again it seems as though over the long run yes solar power is a way to cheapen your energy costs considerably. Not like recycling which boasts of a way to save the environment and cheapen the cost of those materials that are being recycled. Well both may not be as true as stated prompting many communities to “recycle” the materials that they collect from well meaning residents right into the trash.
Article Source: Messaggiamo.Com
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