There’s still time to take advantage of the tax credits for solar installations before the end of the year. In Georgia, you can get 65% of the cost of solar system paid for in tax credits . To take the credit for 2009, the system has to be installed in 2009. But don’t worry, the credits are in effect for a few more years, so if you don’t want to do it this year you can do it in 2010.
For a solar water heating system, you get 35%, up to $2500 in Georgia state tax credits, and no maximum for federal credits. For a photovoltaic system the maximum state tax credit is $10,500, and there is no maximum on the federal credit. The credits cover component cost and installation cost. Here is how it works.
To claim the state tax credit, you install the system and then fill out the tax credit pre-approval form which can be found on the GEFA website (Georgia Environmental Facilities Authority). Don’t be fooled by the name “pre-approval”. You don’t get approval before you install the system. You have to install the system before you can get pre-approved for the credit. This is because there is only so much money allocated each year, and because the tax credits aren’t given until the end of the year when you file your tax return, the money is allocated to those who apply first. Once all the money has been allocated for that year, they will stop pre-approving applications for that year. Don’t worry; there is still plenty of money remaining for 2009. For the Federal credit you simply fill out IRS form 5695 and file it with your return. More information on the tax credits can be found on the DSIRE website (Database of State Incentives for Renewables and Efficiency).
Complete Resources is a solar contractor and green builder in Athens GA. Complete Resources also offers a training class for teaching installation of solar water heating systems using the Power Partners Solar water heating system. The instructor for the class, Tony Purcell is a North American Board of Certified Energy Practitioners Certified Solar Thermal Installer.
