Take advantage of the 30% federal tax credit on your 2011 taxes!


Take advantage of the 30% federal tax credit on your 2011 taxes!

Act by year-end: If you’ve been thinking of getting your own small wind or wind-solar hybrid system, this is a great time to act. The tax benefits for purchasing systems are significant – 30% of the entire installed system, less incentives, can be claimed as a tax credit, and there are even more benefits if you own a business.

If you are a home or boat owner:

If you install a small wind system by December 31 you can take advantage federal incentives on your 2011 taxes. Installation of Skystream systems can take a month or more with permitting, excavation and concrete work, so it’s essential to act now. Our off-grid battery charging systems also qualify. They can be installed in just hours at your remote, home, cabin, or on your boat or RV. But you must act now as time is running short..

If you own a business:

If you own a business, you can receive a 30% federal tax credit in the form of a deduction on tax liabilities owed for up to 5 years after the installation of the Skystream or you can get a grant from the U.S. treasury if it’s installed by the end of 2011.

In addition, business owners are  eligible for a 100% bonus depreciation (write off) on capital investments installed by Dec. 31, 2011. In 2012, the benefit is reduced but still significant. If you’re thinking of investing in a small wind or wind-solar hybrid system for your business, act now to write off 100% of the cost for 2011.

Small Wind Tax Credit FAQs*

Q: How does a tax credit work?

A: Typically, a tax credit is money that you can deduct directly from any taxes paid to the federal government (tax liability). The small wind tax credit can be carried over two years (residential) or five years (business) after the product is installed. For more information on how to take advantage of the credit, we suggest that you speak to a tax specialist.

Q: What does this mean to me?

A: The entire cost of a Skystream system (plus installation) is reduced by 30 percent provided you pay taxes. The credit can be claimed over the course of two years. Depending on where you live, you could save even more! Some states and utilities have implemented additional incentives for small wind systems which can be used in addition to the Federal credit. Check with your tax specialist to see whether these incentives apply to you.

Q: I don’t normally owe taxes – how can I claim the credit? A: You can only claim the credit based on what you would owe in taxes (your tax liability). If you do not normally pay taxes, you may want to consult with a tax specialist to understand better what opportunities are available to you.

Q: How do I claim the credit? A: You will be required to file the long form and itemize your deductions. The IRS form 5695 must be completed and filed with your taxes.  Download the form at http://1.usa.gov/sv4paT

Q: What if I want to purchase and install more than one Skystream? A: The stimulus package allows for a 30 percent tax credit on the total cost of multiple units. There is no cap on the 30 percent tax credit. Businesses may qualify for a grant from the US Treasury in lieu of a tax credit.

Q: Does this work for all small wind systems, even off-grid Whisper and AIR turbines? A: Yes. The incentive is available to all users of small wind systems that provide power to a home or business.

Q: Does the home need to be my primary residence to qualify? A: No. The tax credit can be applied to any property that qualifies as a home, including boats, RVs, mobile homes and vacation homes. Consult with your tax specialist for more information about qualifying properties.

Q: Does wind power for my boat or RV qualify? A: Yes, provided the properties can be classified as a home. It does not have to be your primary residence. Consult with your tax specialist for more information about qualifying properties.

Q: Are additional incentives available to business owners? A: Yes, in addition to the tax credit or cash grant, business owners are also eligible for 100% depreciation through the end of 2011. Starting in 2012, depreciation returns to 50%.

Q: I own a business. I heard I can get cash back rather than a tax credit – how does that work? A: Businesses can apply for a grant from the US Treasury and rather than a tax credit, receive a cash grant.

Q: Will wind power work for me? A: To learn whether wind and solar power might work for you, get your free wind and solar energy assessment at http://www.windenergy.com/assessment

 

 

*Please also note that with this information, Southwest Windpower or any of its dealers is not providing, nor intending to provide, legal advice. To the extent you have questions concerning any legal or tax issues; you should consult a lawyer or accountant. Neither Southwest Windpower nor its dealers shall be responsible for your use of this information or for any damages resulting therefrom.

 


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