Most folks may be aware that there are Federal and State tax credits available for things like photovoltaic systems, biomass heating, replacement windows, adding insulation, even tax credits available for some colors of replacement roofing. Many of these tax credits are not available for new construction; things like windows for your new construction are not eligible. However there are available credits for replacements windows in older homes.
There is a website (http://www.dsireusa.org/) where you can check on a variety of programs on a state by state basis.
You might find some interesting info. The federal credit is easy; 30% of the purchase price will be taken as a line item deduction before taxes are calculated on the tax year 2009. Items just need to be placed in service on or after Jan 1, 2009
I found that here in NM anything I buy to build my solar PV system should be exempt from state sales taxes (in NM it's actually a gross receipts tax, paid by the businesses, but of course collected from the consumer.) Buying things from a recognized in state alternate energy vendor makes it simple. They have the forms on hand, you sign and they don't collect the tax.
I'm hoping I can extend that to items I buy from "ordinary" vendors like Lowe's, Sam's Club, etc.
Here's the wording I'm counting on... Solar energy system includes components or systems for collecting and/or storing energy, but does not include components or systems related to the use of the energy.
I read that to mean that the wire used to connect the PV panels to the charge controller, then to the batteries, inverter, etc should be tax exempt as they are involved in the collection of solar energy. Ditto the batteries, which I'll likely get from Sam's Club (golf cart batteries). The wording would also indicate that the output wiring from the inverter would not be included, I think.
Anyhow, I'll find out when I go here and there buying stuff. The credit also applies to repairs and I need new glazing for a hot air collector. Those are covered as well. So I guess I'll be printing a bunch of forms that I downloaded from the NM website and see how this goes. I'll post results as they occur.
Have a look; you never know what you might find under your state.
No credits for new construction as they already have you on the tax rolls via your permit.
If you do it yourself and don't have a permit they likely will not know so the credits will get you to declare it and as you should, of course, get it onto the tax rolls. ::)
A year or two credit then taxed for the rest of your life.
Just the way I see it - maybe I'm wrong. :)
Link doesn't work.
Repaired link. Thanks.
The way I see it Glenn, is that I am already on the tax rolls and have been for years.
If I can get 30% of what I put into my PV system back, that's a nice chunk of money. It's my money. As for being taxed more on the increase in the property value, that's not going to happen overnight. Whenever that happens the tax amount increase will be incremental; the PV system is a small portion of the total value of the property.
Add to that no sales tax on the equipment; here that runs around 6.5 to 6.8%.
Add to that my cushion, here in NM, that the property tax rate cannot go up by anymore than 3% as long as I own the property.
For me it simply does not make sense to forfeit those thousands of dollars. We each must assess the situation and make our own decisions, though.
Further to this topic of property taxes; while it is true nobody has to allow the tax assessor onto their property, refusing that will do little, if anything, to prevent tax assessment increases. If the assessor can not view the property they can and will make a guesstimate. I believe that the assessor will do their darndest to guess high. So, let's assume they overvalue the property by 15%. Are you going to accept that valuation or are you going to challenge it? If you accept you will be paying an excess in taxes every year, until the next reassesment. That's hardly palatable. If you enter the challenge process that's just more head butting and you'll likely end up where you would have been if the assessor had viewed the property.
More than likely the assessor won't even visit most properties. They go by building permit applications and values of similar properties as those sell, using those market prices.
as of Jan 28th 3.4 billion in federal energy grant money available to the states has now been linked to the state's adoption of the '09 ICC Energy Conservation Code. 39 states had already adopted the procedures. Federal law now says that all states will adopt the ICC's procedures. No extortion there ::).
http://www.iccsafe.org/news/nr/2009/0128_energy.html (http://www.iccsafe.org/news/nr/2009/0128_energy.html)