Congress extends program for eight years.As part of the Emergency Economic Stabilization Act (EESA) designed to address the current financial crisis, the federal government has extended the 30 percent solar tax credit for both residential and commercial installations.
The Bill (HR1421) also eliminates the $2,000 monetary cap for residential solar systems, creating a true 30 percent credit and allowing Alternative Minimum Tax (AMT) filers, both businesses and families, to take the credit. Public utilities will also be able to access the credit.
According to the Hawai‘i PV Coalition, this action will help families stabilize their energy bills and generate thousands of “green-collar” jobs in the solar industry. It also will save thousands of dollars as more households take advantage of this new, more affordable solar energy.
Lenders, when calculating the ability of households to afford a home and make the payments, are increasingly examining these energy cost savings. You can get more information on this trend and on “green mortgages” by visiting with your professional mortgage broker.
In Maui County all new residential construction is required to install solar hot water heating systems.
As a result of the congressional action, the typical 3-kilowatt system, which has a cost of about $27,000, will be eligible for $9,000 in federal tax credits (as opposed to the current $2,000) and the pool of those who are eligible for the tax credit has been expanded.
The price of oil and electricity has risen in Hawai‘i by 55 percent in just the last three years, and according to Brad Albert, president of the Hawai‘i PV Coalition, “Investing in a solar system has a great rate of return and is one of the safest investments out there right now.”
Alternative energy advocates are hailing the action as the most significant federal policy ever enacted for the solar industry, one that will not only help families but also help businesses save thousands of dollars as they take advantage of the tax credit.
For more information on this and other energy saving initiatives, contact the coalition at www.hawaiipvcoalition.org.
Premiere Mortgage has offices on Maui and Kaua‘i and provides a wide range of services to the real estate community. Tricia Morris may be reached on Maui, in Kihei, at 874-8800, Wailea, at 891-8900, West Maui at 665-8800, on Kaua‘i at (808) 822-2300, or toll-free at (800) 813-7711.