Current Tax Credits
Solar incentives and financing can come from many sources depending on your particular project. The Solar Over Louisville campaign seeks to promote the available $500 residential Kentucky state tax credit and the $1,000 commercial tax credit that will help homeowners and businesses consider the opportunities solar power generation presents among various other opportunities. There is also a 30% Federal Investment Tax Credit available until December 31, 2018.
Kentucky Revenue Cabinet Tax Incentives
Draft 2015 5695K Tax Form: KY Energy Efficiency Products Tax Credit:
KRS 141.435 and KRS 141.436
Kentucky offers state tax credits for renewable energy systems installed after Jan. 1, 2009. For most of these systems, such as passive solar hot water heating, or wind energy, the rebate covers up to 30 percent of the installation fees, for any amount up to $500 for homeowners or $1000 for businesses. For photovoltaic systems, the rebate works a bit differently, and is calculated at $3.00 for each watt of direct current of the rated capacity of the system. To qualify for the state tax credit, the system must be installed by a NABCEP.
For your solar hot water heating system to qualify, it must have a manufacturer’s warranty of at least five years, an installer’s warranty of at least two years, and use Solar Rating and Certification Corporation-certified collectors.
If you have a photovoltaic system, it must be installed by a company certified by the North American Board of Certified Energy Practitioners, and its panels and inverters must be certified by Underwriter’s Laboratories and meet article 690 of the National Electrical Code.
Source: DSIRE. More…
Federal Investment Tax Credit (ITC)
Sections 25D and 48 of the IRS Tax Code
The federal Investment Tax Credit (ITC) is a 30% tax credit for solar systems on residential, commercial, and industrial properties that ends on December 31, 2016. The company that installs, develops and finances the installation, uses the tax credit when homeowners purchase the solar systems and install them on their homes.
The residential 25C 30% tax credit is applicable for the below expenditures:
- qualified solar electric systems;
- qualified solar water heaters;
- qualified fuel cell property;
- qualified small wind energy property; and
- qualified geothermal heat pumps
The Qualifying Advanced Energy Project Section 48 30% tax credit is a credit for businesses which establish, expand or re-equip a manufacturing facility for the production of:
- property designed to be used to produce energy from the sun, wind, geothermal deposits or other renewable resources,
- fuel cells, microturbines, or an energy storage system for use with electric or hybrid-electric motor vehicles,
- electric grids to support the transmission of intermittent sources of renewable energy, including storage of such energy,
- new qualified plug-in electric drive motor vehicles, qualified plug-in electric vehicles, or components which are designed specifically for use with such vehicles, including electric motors, generators, and power control units, or
- other advanced energy property designed to reduce greenhouse gas emissions