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Solar Tax incentives
For Residential systems, a 30% federal income tax credit is available on the purchase price of the solar photovoltaic system, in effect till 2016.
For Businesses
As a business owner, you have the choice of a 30% federal income tax credit or a cash grant.
The federal solar cash grant is legislated under Section 1603 of the American Recovery and Reinvestment Tax Act of 2009, whereby the United States Department of the Treasury “makes payments to eligible persons who place in service specified energy property and apply for such payments. The purpose of the payment is to reimburse eligible applicants for a portion of the expense of such property. Eligible property under this program includes only property used in a trade or business or held for the production of income.”
"Applicants interested in receiving payments under Section 1603 may submit an application on-line by going to www.treasury.gov/recovery. Applications may only be submitted after the property to which the application relates is placed in service, or is under construction. All applications for the cash grant must be received before the statutory deadline of October 1, 2011.”
Claiming the Credit or Cash Grant and IRS Forms Business energy credits are claimed by attaching a Form 3468 to one’s tax return.
Property Tax
In the state of New Jersey, as of October 1, 2008, as per supplementing chapter 4 of Title 54 of the Revised Statutes, solar photovoltaic systems and certain other renewable energy systems including wind, geothermal, hydropower and others, are exempt from real property taxation.
Energy Efficiency Upgrades
These items qualify for 30% tax credit up to $1500 ** (see exceptions to cap)
Insulation in walls, basement and attic Windows & Doors (including Storm windows & doors)-Exterior with U factor ≤ 0.30
SHGC ≤ 0.30 Roofing All ENERGY STAR qualified metal and reflective asphalt shingles Central A/C Split Sys: EER ≥13 SEER≥16 Package systems: EER≥12 SEER≥14
Air Source Heat Pumps Split Systems: HSPF≥8.5 EER≥12.5 SEER≥15 Air Source Heat Pumps Pakge Systems: HSPF≥8 EER≥12 SEER≥14 Natural Gas or Propane Furnace - AFUE≥95 Oil Furnace - AFUE≥ 90 Gas, Propane, or Oil Hot Water Boiler - AFUE ≥90 Advanced Main Air Circulating Fan No more than 2% of furnace total energy use.
Water Heaters: Gas, Oil, Propane - Energy Factor≥ 0.82 or thermal efficiency ≥90% Electric Heat Pump Water Heater Same criteria as Energy Factor≥2.0 Biomass Stove for home or water heating Thermal efficiency rating of at least 75%
**All Energy Star geo-thermal heat pumps qualify **Solar Water Heating for dwelling and certified by the SRCC. Not for pools or hot tubs. **Photovoltaic Systems for home’s electricity **Residential Small Wind Turbines **Residential Fuel Cell & Microturbine at least 30% efficient with capacity of ≥0.5 kW.
Cars- Hybrid gasoline-electric, diesel, battery-electric, alternative fuel, and fuel cell cars Based on special formula. 60,000 vehicle limit per manufacturer before a phase-out. Honda & Toyota are already past limit. Credit still available for Ford, GM & Nissan. fueleconomy.gov Plug-in hybrid electric cars $2,500-7,500 The first 250,000 vehicles sold get full tax credit (then it phases out like the hybrid tax credits) IRS Form 8910 for personal Hybrid vehicles IRS Form 3800 for business hybrid vehicles IRS Tax Form 5695 for home improvements ** $1,500 is the maximum total amount that can be claimed for all products placed in service in 2009 & 2010 for most home improvements, EXCEPT for geothermal heat pumps, solar water heaters, solar panels, fuel cells, and small wind energy systems which are not subject to this cap, and are in effect through 2016. see www.energystar.gov