solar hot water income tax credit cap removed!?!

michael_34

The final version of the "stimulus package" passed by the House and Senate lastnight includes a provision that eliminates the cap on the federal income tax credits for residential solar hot water and wind systems. The full credit will be available now for systems installed after December 31, 2008. The bill still has to be signed by the administration, but attached is the conference report from yesterday explaining the agreements come to by the House and Senate. The changes are on pdf pg 15. For a typical 2-3 collector solar hot water system we install, it appears that the tax credit would now be around $5,000-$6,000 instead of $2,000. This is not overwhelming, but good! The wind situation - although a bit more complex because of its not clear if the $500 per half of kW capacity still applies - should also be improved.