With all this talk about financial incentives for renewable energy, do you know the the difference between federal tax grants and tax credits?
Here are the similarities between the two:
- Both apply to Commercial, Industrial, and Agricultural sectors
- Both can be applied to eligible systems of solar, fuel cells, small wind, geothermal, microturbines and CHP
Tax Grants are grants provided by the government and given to your business in the form of a check as a way to incentivize production of renewable energy. Tax Credits are also incentives given to your business in the form of credit towards paying off your yearly taxes. Credits can roll over to the following year if you don’t use them immediately. Credits are good for 5 years before they expire.
Now that you understand the difference between the two, understand that tax grants are going to expire by the end of this year (12/31/11)! So if you want to take advantage of these tax grants you will need to start the project by the end of this year! So act now!
For more information of tax grants and tax credits visit: Dept of State Incentives for Renewables and Efficiency (DSIRE)