The idea that the energy transition is possible thanks to wind power is becoming more and more widespread. Along with it, the federal government’s conviction persists to continue financing it, also in the residential sector. To this end, the new Small Wind Turbines Residential Tax Credit has been introduced, the requirements and amounts of which we will now reveal.
United States bets on wind self-consumption: the subsidy program you can benefit from
The US government recently enacted a new tax credit aimed at incentivizing homeowners to install small wind turbines on their properties. This residential small wind turbine tax credit allows homeowners to claim back 30% of the total installed cost of a small wind turbine system, up to $3200.
With wind power generation on the rise in the US, the new tax credit makes residential wind turbines an attractive option for eco-conscious homeowners looking to make use of wind energy. The credit applies to small wind turbines placed into service between January 1, 2023 and December 31, 2032.
A subsidy program designed for your home: up to $3200 for installing wind turbines
The tax credit is a 30% credit that can be claimed on federal taxes for the total cost of installing a small wind turbine on residential property. This credit applies to small wind turbines with a nameplate capacity of 100 kilowatts (kW) or less.
The 30% credit can be claimed directly against any federal income taxes owed, lowering the tax bill dollar for dollar. The tax credit aims to make small wind turbines more affordable for homeowners, ranchers, and small businesses looking to utilize wind power.
By significantly reducing the net costs after installation, the credit incentivizes more residential customers to adopt this renewable energy technology. The tax credit is available to homeowners who install qualifying small wind turbines on their property.
The home can be your primary residence or a second home that you own. It does not need to be your full-time residence to qualify. Installations on rental properties or commercial buildings do not qualify for the residential credit.
So if you’re a homeowner looking to install a small wind turbine on your property, you can claim this tax credit and reduce your federal income taxes. Just make sure your turbine meets the qualification requirements outlined later in this article.
The Small Wind Turbines Residential Tax Credit requirements: here’s what to look out for
The residential, small wind energy tax credit allows you to claim up to 30% of the total cost of your small wind turbine system, including installation. Specifically, you can claim up to $1,200 per kW of capacity, with a maximum credit amount of $3,200.
The key things to understand are that you can claim up to 30% of the total system cost, but no more than $1,200 per kW, up to a maximum of $3,200. So make sure to do the calculations based on your specific turbine size and costs. Every little bit helps when installing renewable energy systems.
To qualify for the tax credit, the small wind turbine must meet certain requirements:
- The turbine must come with a minimum 5-year manufacturer’s warranty. The warranty should cover defects in materials and workmanship and include a provision to either repair or replace defective components over the warranty period.
- The turbine must be installed according to the manufacturer’s specifications and instructions, as well as all applicable local permitting, zoning, and electrical codes. Proper installation by a qualified installer helps ensure safety and optimal performance.
This new Small Turbines Residential Tax Credit continues the path of other subsidies that we have unveiled on previous occasions. The key is to take advantage of them to bet on renewables in your home and, above all, to renew your commitment to the environment, for which you have more and more opportunities.