Small Wind Turbine Federal Tax Credit
is Law
Today
Congress passed legislation, the Emergency Economic
Stabilization Act of 2008, H.R. 1424, that includes a
new federal-level investment tax credit to help
consumers purchase small wind turbines for home, farm,
or business use. A few hours ago, President Bush signed
the bill into law. Owners of small wind systems with 100
kilowatts (kW) of capacity and less can receive a credit
for 30% of the total installed cost of the system, not
to exceed $4,000. The credit will be available for
equipment installed from today through December 31,
2016. For turbines used for homes, the credit is limited
to the lesser of $4,000 or $1,000 per kW of capacity.
“We thank Congress for recognizing and supporting small wind
systems as an important contributor toward energy
security and a cleaner environment. This credit will
help individuals cut their electric bills while
combating global warming and reducing our importation of
fossil fuels in a tangible way,” says Ron Stimmel,
Small-Wind Advocate with the American Wind Energy
Association.
This legislation marks the first federal incentive for
small wind systems since 1985. Industry members say the
credit could foster U.S. market growth of 40% or more
annually for the largely American based industry.
AWEA, its members, and allies have advocated for a 30% federal
investment tax credit for small wind systems 100 kW and
smaller to put the industry on equal policy footing with
the solar photovoltaic (PV) industry. The two
technologies share the same market. The broad
legislation passed today also extends and expands a
similar credit for the solar industry that was first
passed in 2005. Residential and commercial solar PV
installations can receive a 30% credit, capped at $4,000
for residential applications and uncapped for commercial
uses.
The U.S. has historically dominated the global small-wind market
but has faced pressure in recent years from overseas
nations that have implemented strong domestic incentive
programs for small-scale renewables. The U.S. small wind
industry projects that the enactment of this federal
credit, combined with a forthcoming equipment
certification program, will help secure the U.S. market
as the global leader thus providing thousands of new
jobs for Americans.