The American Recovery and Reinvestment Act of 2009 passed earlier this year resulted in historic events for the solar power industry. But I noticed that many people out there are still not aware of the benefits. Today I want to highlight the key benefits this legislation has brought to people and organizations who choose to invest in solar panels.
- tax paying corporations now qualify for a 30% federal tax grant in lieu of a tax credit. A "tax grant" works similar to a rebate in which the U.S. Treasury Department will send a corporation 30% cash payment based off the final cost of the system. This is a limited time offer, only solar electric systems which commence installation before the end of 2010 will qualify.
- 50% bonus depreciation has been extended for corporations who install solar panels by the end of 2009
- $2,000 tax credit cap has been eliminated for solar hot water systems, now solar thermal panels can qualify for the full 30% tax credit.
