Answer»
- There is a 30% investment tax credit for the purchase of a windturbine. the law says you can also select to take this as a cash grant if you wish. This has changed in 2012, and we have been told that this is a tax credit, dollar for dollar credit against yoiur taxes.Check with your CPA.
- The USDA will provide up to a 25% of the purchase price and installation REAP grant for agricultural producers or business in ag communities
- There are 5 federal programs GIVING tax benefits, AID or grants for wind applications
- There is a 2 cents per kWh produced, tax credit, to the owner of awind turbine annually, credited to taxes, but this APPLIES to only large commercial wind production
- Commercial buyers of wind turbines can depreciate them over a 5 to 7year PERIOD and deduct the entire cost of the turbine from taxes
- We always recommend that you check with a competent CPA to see what your tax status is and which deductions and incentives you qualify for. In some cases there are "offsets", so you may not be able to claim both a 30% ITC and 25% Ag deduction at the same time. But if you are using your turbine for business, you will probably qualify for a 5 to 7 yeardepreciation deduction.
- Depreciation deduction plus a 30% ITC equals deductions, grants or incentives that will largely help pay for most of your expense over 5 to 7 years. This does not include the energy you actually produce or energy savings which are substantial.
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