Tax Benefits
FAQs About Changes to the Investment Tax Credit for Solar

The following information is intended as general guidelines and not authoritative
advice. Consult a tax professional for advice on how the Investment Tax Credit
(ITC) applies to specific situations.

When will the new Investment Tax Credit (ITC) be in effect?
The new Investment Tax Credit (ITC) will apply to projects placed into service
between January 1, 2009 and December 31, 2016.

How did the residential Investment Tax Credit (ITC) change?
Homeowners will be able to claim the full 30 percent of the cost of a solar
installation as a tax credit; the $2,000-cap no longer applies.

What happens if a homeowner can't use the full credit in the year of
Any unused portion of the residential Investment Tax Credit (ITC) CAN be carried
into future years.

How does the alternative minimum tax (AMT) affect the Investment Tax Credit
Tax payers who claim the Investment Tax Credit (ITC) should no longer be
penalized by the AMT calculations, so AMT filers should be able to claim the full
Investment Tax Credit (ITC).

Are there size limits on projects eligible for the Investment Tax Credit (ITC)?
No, projects of any size or cost are eligible.

Is the funding for the Investment Tax Credit (ITC) limited?
No, there are no limits on the number of taxpayers that can claim the Investment
Tax Credit (ITC).

Can members of a homeowners association (HOA) claim the Investment Tax
Credit (ITC) for an HOA-owned system
Yes, members of the HOA are able to claim the residential Investment Tax Credit
(ITC) in proportion to their share of the HOA's expenses; typically a homeowner's
monthly HOA payment should be directly related to their share of the HOA's

***This information is for informational purposes only.  Please see your tax
professional before making a final decision regarding the tax benefits of
purchasing a solar system.  Current tax laws can be found at
30% Solar Investment Tax Credit for Commercial and
Residential Solar Electric Systems

On Friday, October 3rd 2008, Congress passed and President Bush signed into
law the Economic Stabilization Act of 2008, which included the long awaited 8 year
extension of the solar investment tax credit. Of major significance, the act also
lifted the $2000 cap on the solar tax credit for residential solar electric systems.
Now, both commercial and residential solar energy systems will be eligible for a
30% solar tax credit. Effective January 1st 2009, the impact of the law will be
stable, rapid growth for the solar industry and a significant increase in the
affordability and financial return of a solar energy system for homeowners, making
it one of the safest and best investments available today.

A Solar System for Your Home or Business is More Affordable Now than Ever!
Solar incentives reduce the cost of your system by tremendously -- Check out our
Numbers tab to learn more.

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