Congress passed legislation extending the 30 percent solar energy investment tax credit for homeowners and businesses through the end of 2008, Solar Energy Industries Association reports (via CleanTech Blog). The industry sought an eight-year extension.
Residential Solar Tax Credit: Extends a 30-percent tax credit, created in the Energy Policy Act of 2005, for the purchase of residential solar water heating, photovoltaic equipment, and fuel cell property. Expires after December 31, 2008.
Business Solar Tax Credit and Fuel Cell Tax Credit: Extends a 30-percent business credit, established in the Energy Policy Act of 2005, for the purchase of fuel cell power plants, solar energy property, and fiber-optic property used to illuminate the inside of a structure. After December 31, 2008, the credit reverts to a permanent 10-percent level.
“It still takes an accelerated depreciation and the state rebates to make these projects come anywhere close to penciling out – meaning when the private sector spend $1 for solar, the taxpayer spends about a $1.50,” Neal Dikeman writes.