Monday, April 2, 2007

Small Wind Tax Credits

The U.S. Congress is considering a new blockbuster bill to support small wind. The size of this federal tax credit is _massive_ and could dramatically change the pace and acceptance of small wind in the United States.


"Tax Credit Bill Now Introduced in House

A bill was introduced yesterday, March 29 by Reps. Earl Blumenauer (D-OR) and Tom Cole (R-OK) in the House of Representatives that would provide an investment tax credit to consumers looking to purchase small wind turbines. This bill, H.R. 1772, comes on the heels of an identical bill that was introduced in the Senate last February (S. 673). Both bills call for the following:

  • A tax credit of $1,500 per ½ kilowatt (kW) of capacity for a small wind system. The proposed credit would have no cap and would be available for 5 years for all wind systems 100kW in capacity and under.
  • Carry-over of credit: In the event that using this credit puts the consumer’s taxable income below the minimum threshold, this provision allows the unusable excess credit to be carried over to the next tax year. This essentially allows a consumer with a low annual income to take full advantage of the credit.
  • Accelerated depreciation of three years, rather than the standard 5 years.

Go Distributed Wind Power!