The Republican tax bill has finally been made public and so far it’s all good news for green energy systems. Read on to see how you can benefit.
While the 2017 Republican Tax bill very nearly spelled doom for the burgeoning renewable energy field, some last minute changes saw it preserved.
The long-story-short is that many of the incentives that were already in place for green energy systems are still there.
And since nearly 10% of the United States’ energy came from the renewable sector in 2017 – a record amount – things are looking good for green energy systems.
Here’s what you need to know about them for 2018.
There’s Still a 30% Tax Credit for People Buying Home Solar
This isn’t actually very new – this has been going on for some years now.
It is, however, a better deal than ever.
Due to advancements in green energy tech, the equipment for setting up home solar (and to a lesser extent, wind) energy is cheaper than ever. Saving money on your natural gas and electric bill is an immediate benefit, but the cost of installing new equipment can be a turn-off for some.
But, considering that you only pay two-thirds of the price of installation, these systems tend to pay themselves off much faster than other investments.
Often in less than 10 years!
Check local, too! Lots of states and municipalities have incentives to switch to green energy systems. Some financial institutions will offer special loans for financing the switch. For the most up to date local incentives we suggest getting in contact with a screened local installer.
Electric Vehicle Tax Credits Up to $7500
The federal government also offers a tax credit for electric vehicles. The payout scales between $2500 and $7500 depending on a variety of factors – the size of the vehicle, personal or business use, etc.
The credit was expected to be repealed in the revised tax bill, but surprisingly, it survived.
Base Erosion Anti-Abuse Tax Was Included in the Bill
While the stated purpose of the BEAT program is noble – to prevent companies from avoiding tax by putting money overseas – the net effect is negative for green energy systems.
The actual effect of this bill is reducing the likelihood of investment in green energy companies by financial institutions.
What does that mean to a consumer like you?
It will definitely have an impact on major solar and wind investments, but the costs are unlikely to pass onto the consumer.
Although unfortunate for green energy producers, this was the only true negative in the tax bill – and that’s quite a relief.
Green Energy Systems Incentives Are a Limited Time Offer
Even though we’ve staved off systematic dismantlement of the green energy field, these perks are still finite in nature.
The electric vehicle credit, for example, will only apply to the first 200,000 electric vehicles sold by a given manufacturer.
That sounds like a lot, but it certainly won’t last forever.
Additionally, the original 2015 tax bill that set up these incentives is set to expire in 2021. Barring unforeseen changes, this will still occur.
While advancements in green energy systems will continue to reduce the cost of implementation, the opportunity for subsidized installations will only last a few more years!
So don’t wait any longer! Look into solar for your home today!