Important Announcement Impact of the American Recovery and Re-investment Act (2009 Stimulus Package)
Background
On February 17, 2009 President Obama signed the American Recovery and Re-investment Act of 2009 into law. With a significant emphasis on renewable energy technology deployment and job expansion, the bill improved upon the 2008 tax credit, by removing "cost caps." This change allows consumers and small businesses to take a 30% tax credit off the installed cost of a wind turbine. To a consumer or business purchasing a single 2.4KW residential wind turbine, it will double their credit. Additionally, consumers and businesses will also have the option of receiving their credit in the form of a cash grant. This credit can be applied against taxes owed or, for at least 2009 and 2010, receive a grant for the same amount from the Government.
Frequently Asked Questions
Q: How does the stimulus package impact Skystream purchasers?
A: The entire cost of a Skystream system (plus installation) is reduced by 30 percent. For example, if an average installation costs between $12k -- $18k, the stimulus package will save you between $3,600k -- $5,400. And depending on where you live, you could save even more! States have also implemented rebates for small wind which can be added to the Federal credit. Furthermore, in the last two months alone, more than 30 States have introduced legislation that either further incentivizes renewables and/or addresses market barriers.
Q: What about my customers that have already purchased a Skystream?
A: If they purchased a Skystream in 2008, they will qualify for the federal-level tax credit, passed as part of the October 2008 bailout legislation, up to $2,400k. If they purchased a Skystream in 2008 but it was not installed until 2009, you can write a letter indicating that the wind turbine was not "commissioned," i.e., became operational until 2009, they would qualify for the 30 percent tax incentive or a cash grant for the same amount.
Q: What if I install more than one Skystream?
A: The stimulus package allows for a 30 percent tax credit or cash grant on the total cost of multiple units. There is no cap on the 30 percent tax credit or cash grant.
Q: I heard the customer can get cash back rather than a tax credit - how does that work?
A: Yes, they can apply for a grant from the US treasury and rather than a tax credit, receive a cash grant. The details are still being worked out but should be in place by April or May. Keep in touch for more information.
Q: Does the stimulus package benefit the renewable energy industry as a whole?
A: Yes, the Bill makes both solar wind and even energy efficiency more affordable for Americans and American corporations that are looking to utilize sustainable energy within their homes and facilities. The American Wind Energy Association (AWEA) reported that the United States is the largest producer of small residential scale wind generators. As much as 66% of the global market is produced domestically. This means the jobs being generated are also for the manufacturing sector.
What are "Net Billing" & "Net Metering?"
"Net-metering" is a simplified method of metering the energy consumed and produced at a home or business that has its own renewable energy generator, such as a wind turbine. Under net metering, excess electricity produced by the wind turbine will spin the existing home or business electricity meter backwards, effectively banking the electricity until it is needed by the customer. This provides the customer with full retail value for all the electricity produced.
More On Net Metering