Incentives
Tax Incentives

 

 

Incentive :

 

Residential Federal Tax Credit

 Federal Personal Renewable Energy

State: Federal
Eligible Renewable/Other Technologies: Solar Water Heat, Photovoltaics, Wind, Fuel Cells, Geothermal Heat Pumps, Other Solar Electric Technologies
Applicable Sectors: Residential
Amount: 30%
Maximum Incentive: Solar-electric systems placed in service before 1/1/2009: $2,000
Solar-electric systems placed in service after 12/31/2008: no maximum
Solar water heaters placed in service before 1/1/2009: $2,000
Solar water heaters placed in service after 12/31/2008: no maximum
Wind turbines placed in service in 2008: $4,000
Wind turbines placed in service after 12/31/2008: no maximum
Geothermal heat pumps placed in service in 2008: $2,000
Geothermal heat pumps placed in service after 12/31/2008: no maximum
Fuel cells: $500 per 0.5 kW
Carryover Provisions: Excess credit may be carried forward to succeeding tax year
Eligible System Size: Fuel cells: 0.5 kW minimum
Equipment/Installation Requirements: Solar water heating property must be certified by SRCC or by comparable entity endorsed by the state in which the system is installed. At least half the energy used to heat the dwelling's water must be from solar. Geothermal heat pumps must meet federal Energy Star requirements. Fuel cells must have electricity-only generation efficiency greater than 30%.
Authority 1: 26 USC § 25D
Date Enacted: 8/8/2005 (subsequently amended)
Date Effective: 1/1/2006
Expiration Date: 12/31/2016
Authority 2: IRS Form 5695 & Instructions: Residential Energy Credits


Summary:
Note: The American Recovery and Reinvestment Act of 2009 does not allow taxpayers eligible for the residential renewable energy tax credit to receive a U.S. Treasury Department grant instead of taking this credit.  
 
Established by the federal Energy Policy Act of 2005, the federal tax credit for residential energy property initially applied to solar-electric systems, solar water heating systems and fuel cells.
The Energy Improvement and Extension Act of 2008 (H.R. 1424) extended the tax credit to small wind-energy systems and geothermal heat pumps, effective January 1, 2008. Other key revisions included an eight-year extension of the credit to December 31, 2016, the ability to take the credit against the alternative minimum tax, and the removal of the $2,000 credit limit for solar-electric systems beginning in 2009. The credit was further enhanced in February 2009 by The American Recovery and Reinvestment Act of 2009 (H.R. 1: Div. B, Sec. 1122, p. 46), which removed the maximum credit amount for all eligible technologies (except fuel cells) placed in service after 2008.

A taxpayer may claim a credit of 30% of qualified expenditures for a system that serves a dwelling unit located in the United States and used as a residence by the taxpayer. Expenditures with respect to the equipment are treated as made when the installation is completed. If the installation is on a new home, the "placed in service" date is the date of occupancy by the homeowner. Expenditures include labor costs for onsite preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. The excess credit can be carried forward until 2016, but it is unclear whether the unused tax credit can be carried forward after then. The maximum allowable credit, equipment requirements and other details vary by technology, as outlined below.
 
 
Solar-electric property
  • There is no maximum credit for systems placed in service after 2008. The maximum credit is $2,000 for systems placed in service before January 1, 2009.  
  • Systems must be placed in service on or after January 1, 2006, and on or before December 31, 2016.  
  • The home served by the system does not have to be the taxpayer’s principal residence.  
  • Note that the Solar Energy Industries Association (SEIA) has published a three-page document that provides answers to frequently asked questions regarding the federal tax credits for solar energy.
 
Solar water-heating property
  • There is no maximum credit for systems placed in service after 2008. The maximum credit is $2,000 for systems placed in service before January 1, 2009.  
  • Systems must be placed in service on or after January 1, 2006, and on or before December 31, 2016.  
  • Equipment must be certified for performance by the Solar Rating Certification Corporation (SRCC) or a comparable entity endorsed by the government of the state in which the property is installed.  
  • At least half the energy used to heat the dwelling's water must be from solar in order for the solar water-heating property expenditures to be eligible.  
  • The tax credit does not apply to solar water-heating property for swimming pools or hot tubs.  
  • The home served by the system does not have to be the taxpayer’s principal residence.  
  • Note that the Solar Energy Industries Association (SEIA) has published a three-page document that provides answers to frequently asked questions regarding the federal tax credits for solar energy.
 
Fuel cell property
  • The maximum credit is $500 per half kilowatt (kW).  
  • Systems must be placed in service on or after January 1, 2006, and on or before December 31, 2016.  
  • The fuel cell must have a nameplate capacity of at least 0.5 kW of electricity using an electrochemical process and an electricity-only generation efficiency greater than 30%.  
  • In case of joint occupancy, the maximum qualifying costs that can be taken into account by all occupants for figuring the credit is $1,667 per half kilowatt. This does not apply to married individuals filing a joint return. The credit that may be claimed by each individual is proportional to the costs he or she paid.  
  • The home served by the system must be the taxpayer’s principal residence.
 
Small wind-energy property
  • There is no maximum credit for systems placed in service after 2008. The maximum credit is $500 per half kilowatt, not to exceed $4,000, for systems placed in service in 2008.  
  • Systems must be placed in service on or after January 1, 2008, and on or before December 31, 2016.  
  • The home served by the system does not have to be the taxpayer’s principal residence.
 
Geothermal heat pumps
  • There is no maximum credit for systems placed in service after 2008. The maximum credit is $2,000 for systems placed in service in 2008.  
  • Systems must be placed in service on or after January 1, 2008, and on or before December 31, 2016.  
  • The geothermal heat pump must meet federal Energy Star program requirements in effect at the time the installation is completed.  
  • The home served by the system does not have to be the taxpayer’s principal residence.
 
 
Significantly, The American Recovery and Reinvestment Act of 2009 repealed a previous limitation on the use of the credit for eligible projects also supported by "subsidized energy financing." For projects placed in service after December 31, 2008, this limitation no longer applies.  
 
 
History  
The federal
Energy Policy Act of 2005 established a 30% tax credit (up to $2,000) for the purchase and installation of residential solar electric and solar water heating property and a 30% tax credit (up to $500 per 0.5 kilowatt) for fuel cells. Initially scheduled to expire at the end of 2007, the tax credits were extended through December 31, 2008, by the Tax Relief and Health Care Act of 2006.  
 
In October 2008, the
Energy Improvement and Extension Act of 2008 extended the tax credits once again (until December 31, 2016), and a new tax credit for small wind-energy systems and geothermal heat pump systems was created. In February 2009, The American Recovery and Reinvestment Act of 2009 removed the maximum credit amount for all eligible technologies (except fuel cells) placed in service after 2008.


 

Incentive Type:

Corporate Federal Tax Credit

 Corporate 30% Federal Tax Credit

State: Federal
Eligible Renewable/Other Technologies: Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Solar Thermal Process Heat, Photovoltaics, Wind, Biomass, Geothermal Electric, Fuel Cells, Geothermal Heat Pumps, CHP/Cogeneration, Solar Hybrid Lighting, Direct-Use Geothermal, Microturbines
Applicable Sectors: Commercial, Industrial, Utility
Amount: 30% for solar, fuel cells and small wind;
10% for geothermal, microturbines and CHP
Maximum Incentive: Fuel cells: $1,500 per 0.5 kW
Microturbines: $200 per kW
Small wind turbines placed in service 10/4/08 - 12/31/08: $4,000
Small wind turbines placed in service after 12/31/08: no limit
All other eligible technologies: no limit
Eligible System Size: Small wind turbines: 100 kW or less
Fuel cells: 0.5 kW or greater
Microturbines: 2 MW or less
CHP: 50 MW or less
Equipment/Installation Requirements: Fuel cells, microturbines and CHP systems must meet specific energy-efficiency criteria
Authority 1: 26 USC § 48


Summary:
Note: The American Recovery and Reinvestment Act of 2009 (H.R. 1) allows taxpayers eligible for the federal renewable electricity production tax credit (PTC) to take the federal business energy investment tax credit (ITC) or to receive a grant from the U.S. Treasury Department instead of taking the PTC for new installations. The new law also allows taxpayers eligible for the business ITC to receive a grant from the U.S. Treasury Department instead of taking the business ITC for new installations. The Treasury Department issued Notice 2009-52 in June 2009, giving limited guidance on how to take the federal business energy investment tax credit instead of the federal renewable electricity production tax credit. The Treasury Department will issue more extensive guidance at a later time.  
 
The federal business energy investment tax credit available under 26 USC § 48 was expanded significantly by the
Energy Improvement and Extension Act of 2008 (H.R. 1424), enacted in October 2008. This law extended the duration -- by eight years -- of the existing credits for solar energy, fuel cells and microturbines; increased the credit amount for fuel cells; established new credits for small wind-energy systems, geothermal heat pumps, and combined heat and power (CHP) systems; extended eligibility for the credits to utilities; and allowed taxpayers to take the credit against the alternative minimum tax (AMT), subject to certain limitations. The credit was further expanded by The American Recovery and Reinvestment Act of 2009, enacted in February 2009.  
 
In general, credits are available for eligible systems placed in service on or before December 31, 2016:*
  • Solar. The credit is equal to 30% of expenditures, with no maximum credit. Eligible solar energy property includes equipment that uses solar energy to generate electricity, to heat or cool (or provide hot water for use in) a structure, or to provide solar process heat. Hybrid solar lighting systems, which use solar energy to illuminate the inside of a structure using fiber-optic distributed sunlight, are eligible. Passive solar systems and solar pool-heating systems are not eligible. (Note that the Solar Energy Industries Association has published a four-page document that provides answers to frequently asked questions regarding the federal tax credits for solar energy.)  
     
  • Fuel Cells. The credit is equal to 30% of expenditures, with no maximum credit. However, the credit for fuel cells is capped at $1,500 per 0.5 kilowatt (kW) of capacity. Eligible property includes fuel cells with a minimum capacity of 0.5 kW that have an electricity-only generation efficiency of 30% or higher. (Note that the credit for property placed in service before October 4, 2008, is capped at $500 per 0.5 kW.)  
     
  • Small Wind Turbines. The credit is equal to 30% of expenditures, with no maximum credit for small wind turbines placed in service after December 31, 2008. Eligible small wind property includes wind turbines up to 100 kW in capacity. (In general, the maximum credit is $4,000 for eligible property placed in service after October 3, 2008, and before January 1, 2009. The American Recovery and Reinvestment Act of 2009 removed the $4,000 maximum credit limit for small wind turbines.)  
     
  • Geothermal Systems. The credit is equal to 10% of expenditures, with no maximum credit limit stated. Eligible geothermal energy property includes geothermal heat pumps and equipment used to produce, distribute or use energy derived from a geothermal deposit. For electricity produced by geothermal power, equipment qualifies only up to, but not including, the electric transmission stage. For geothermal heat pumps, this credit applies to eligible property placed in service after October 3, 2008.  
     
  • Microturbines. The credit is equal to 10% of expenditures, with no maximum credit limit stated (explicitly). The credit for microturbines is capped at $200 per kW of capacity. Eligible property includes microturbines up to two megawatts (MW) in capacity that have an electricity-only generation efficiency of 26% or higher.  
     
  • Combined Heat and Power (CHP). The credit is equal to 10% of expenditures, with no maximum limit stated. Eligible CHP property generally includes systems up to 50 MW in capacity that exceed 60% energy efficiency, subject to certain limitations and reductions for large systems. The efficiency requirement does not apply to CHP systems that use biomass for at least 90% of the system's energy source, but the credit may be reduced for less-efficient systems. This credit applies to eligible property placed in service after October 3, 2008.
In general, the original use of the equipment must begin with the taxpayer, or the system must be constructed by the taxpayer. The equipment must also meet any performance and quality standards in effect at the time the equipment is acquired. The energy property must be operational in the year in which the credit is first taken.  
 
Significantly, The American Recovery and Reinvestment Act of 2009 repealed a previous limitation on the use of the credit for eligible projects also supported by "subsidized energy financing." For projects placed in service after December 31, 2008, this limitation no longer applies. Businesses that receive other incentives are advised to consult with a tax professional regarding how to calculate this federal tax credit.  
 
 
History  
The federal
Energy Policy Act of 2005 (EPAct 2005) expanded the existing federal business energy tax credit for solar and geothermal energy property to include fuel cells, microturbines and hybrid solar lighting systems installed on or after January 1, 2006, and raised the credit for solar to 30%. Prior to the provisions of EPAct 2005, a 10% credit was available to businesses that invested in or purchased solar or geothermal energy property.  
 
 
* Note that the credit for geothermal property, with the exception of geothermal heat pumps, has no stated expiration date. The credit for solar energy property reverts to 10% after December 31, 2016.
Contact:
 

Public Information - IRS
U.S. Internal Revenue Service
1111 Constitution Avenue, N.W.
Washington, DC 20224
Phone: (800) 829-1040
Web Site:
http://www.irs.gov

Click here for the application for commercial tax credit.  https://treas1603.nrel.gov/



Net Metering

Net Metering

                                                  Net Metering-Interconnection Standards
State: Florida
Incentive Type: Interconnection
Eligible Renewable/Other Technologies: Solar Thermal Electric, Photovoltaics, Landfill Gas, Wind, Biomass, Hydroelectric, Geothermal Electric, CHP/Cogeneration, Anaerobic Digestion, Small Hydroelectric, Tidal Energy, Wave Energy, Ocean Thermal
Applicable Sectors: Commercial, Industrial, Residential, General Public/Consumer, Nonprofit, Schools, Local Government, State Government, Tribal Government, Fed. Government, Agricultural, Institutional
Applicable Utilities: Investor-owned utilities
System Capacity Limit: 2 MW
Standard Agreement: Yes
Insurance Requirements: Vary by system size and/or type; levels established by commission
External Disconnect Switch: Not required for inverter-based systems up to 10 kW; required for all other systems
Net Metering Required: Yes
Authority 1:
Date Enacted:
3/4/2008
Date Effective:
3/4/2008
Authority 2:
Date Enacted:
6/25/2008
Date Effective:
7/1/2008
Summary:
In March 2008, the Florida Public Service Commission (PSC) adopted interconnection rules for renewable-energy systems up to two megawatts (MW) in capacity. The PSC rules apply only to the state's investor-owned utilities; the rules do not apply to electric cooperatives or municipal utilities.  
 
Florida's interconnection rules include provisions for three tiers of renewable-energy systems:
  • Tier 1: 10 kilowatts (kW) or less
  • Tier 2: Larger than 10 kW, but not larger than 100 kW
  • Tier 3: Larger than 100 kW, but not larger than 2 MW
To qualify for interconnection under the PSC rules, the customer-owned renewable generation must have a gross power rating that does not exceed 90% of the customer’s utility distribution service rating. Tier 1 applicants are not subject to application fees, interconnection studies or liability insurance. Utilities may require that applicants have proof of general liability insurance of $1 million for Tier 2 and $2 million for Tier 3 customers.  
 
An external disconnect switch is not required for inverter-based Tier 1 systems, but a utility may choose to install a disconnect switch for a Tier 1 system at the utility's expense. Utilities are authorized to require customers with Tier 2 and Tier 3 systems to install a disconnect switch at the customer's expense. The PSC rules also require mutual indemnification.  
 
Utilities must offer customers a standard interconnection agreement for the expedited interconnection of renewable generation systems. All systems must meet all applicable safety and performance standards established by the National Electric Code (NEC), the Institute of Electrical and Electronics Engineers (IEEE), and Underwriters Laboratories (UL), including the IEEE 1547, IEEE 1547.1 and UL 1741 standards. In addition, systems must be inspected and approved by local code officials prior to interconnection to ensure compliance with applicable local codes.  
 
In June 2008, Florida enacted legislation (H.B. 7135) confirming that the PSC had the authority to adopt the March 2008 rules related to interconnection and net metering for investor-owned utilities. In addition, H.B. 7135 required municipal utilities and electric cooperatives to "develop a standardized interconnection agreement and net metering program for customer-owned renewable generation" by July 1, 2009. However, the law does not provide specific guidance for municipal utilities and electric cooperatives. Municipal utilities and electric cooperatives are required to file an annual report with the PSC detailing customer participation, although the PSC does not have direct authority over these utilities.  


Contact:
Public Information - FL PSC
Florida Public Service Commission
2540 Shumard Oak Blvd .
Tallahassee, FL 32399-0850
Phone: (850) 413-6600
Fax: (850) 487-1716
Web Site: http://www.psc.state.fl.us