Tax Credits and Benefits of Solar Farms
Although solar farms can be extremely lucrative – not to mention, the demand for these types of energy sources will only grow over the next several years – the original investment can still be a significant one. Many businesses and investors are leery of pumping a great deal of funding into something that may or may not bring them a return in a relatively quick amount of time. Even with the opportunity of earning several times more than the cost of the land and equipment within just a few years, and even with the cost of equipment steadily dropping, it can often be difficult to fork over the money necessary to start a solar farm. Luckily, both the federal and state government are offering solar farm tax credits to offset some of these costs.
Lawmakers know that the current dependence of the United States on fossil fuels and other less clean forms of energy is extremely dangerous. In addition to depleting the earth of important natural resources and polluting the air, creating enough energy to power homes and businesses using these old fashioned methods is expensive and impractical. Sooner or later, these resources are going to run out and thus alternatives need to be in place now. In order to encourage this progress, the government is offering helpful solar farm tax credits.
There are many grants and special low interest loans available to individuals and businesses who invest in renewable energy options – but many of these programs vary by state. For anyone seeking this sort of financial assistance, the state department of energy can offer guidance and information. However, solar farm tax credits can help to save even more money, and they can be taken advantage of quite easily.
One of the solar farm tax credits currently available is the 2012 business energy investment tax credit – which is a credit geared towards increasing consumer energy efficiency and affects those who invest in geothermal heat pumps, residential wind turbines, fuel cells and solar energy systems. In order to benefit from this particular tax credit, the photovoltaic (PV) system must meet electrical and fire codes. This credit offers 30% of total expenditures – which can save quite a large amount of money.
When choosing to invest in solar farm equipment, it is important to know that solar farm tax credits eventually expire. The current business energy investment tax credit expires in 2016, so it is imperative that interested businesses and investors act fast. In addition to earning a tax credit, those who invest in solar farms can enjoy additional benefits – such as profits and a vested effort in a cleaner future.