| By :
Roger Brown
Now is the best time ever to take the plunge and start making your own energy with a home wind turbine kit.
Our government has a clear goal to increase wind generated power dramatically. While we only produced 2.3% of our total power consumption in 2010 from wind, we have set a national goal of making that number 20% by 2030 - which will be no small task. To catalyze progress toward that goal, the federal government has put in place an income tax credit for individuals that purchase home wind turbines, solar collectors, and geothermal energy systems. This Residential Tax Credit is 30% of the total installed cost of your system. (It came from the Emergency Economic Stabilization Act of 2008.) This tax credit is only for homeowners though - not for utilities and investors in large wind farms. Keep in mind that this is a tax CREDIT, not a deduction - which is very good news for us. Tax credits are much better - let me explain why… A tax credit just takes the amount of the credit off your bottom line tax bill. In other words, it is a dollar-for-dollar swap - you pay to have your home wind turbine kit installed and you pay that much LESS in income tax next year. A deduction works differently. It only reduces the percent of tax you have to pay.
Deductions can be rather disappointing when you find out the amount taken off your tax bill isn\'t as much as the numerical amount of the deduction would lead you to believe. You have until the end of 2016 to file under this tax rule. And, the great thing is you can get pretty much all the wind turbine power you want and get 30% of the installed value of the system credited. While the maximum for this program is 100 kW, the most your home would require is 3-4 kW. What steps do I take to get the credit? 1. Install your home wind turbine kit 2. Keep your invoices and add up all your related costs 3. Download IRS Tax Form for Home Wind Turbine Tax Credits 4. Send in the form with next year\'s taxes Are there tax credits available from other government entities? Yes! There are number of them out there from states, towns, and - believe it or not - even from the utilities that stand to lose money by you no longer purchasing as much electricity from them! It depends on which state you are in and how aggressive they are in matching the federal mandate to go renewable. You can easily find out what actual credits are available for you in addition by visiting the Database of State Incentives for Renewables & Efficiency DSIREUSA.ORG - for example, there are 16 political jurisdictions now offering credits…
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