Tax Relief for Wind Turbines
- Tax credits for wind turbine installation have existed since 1978, according to the National Council for Science and the Environment. The 1973 oil embargo quadrupled energy prices and caused Americans and Congress to look for alternative energies. The Energy Tax Act of 1978 was the first piece of legislation to offer tax credits for wind turbine installation. The act expired in 1985 for consumers, but the business credit stayed until the Energy Policy Act of 1992.
- The 2009 economic stimulus act includes a 30 percent tax credit on the price of small wind turbines for homeowners and small business, reports CNN. Small wind turbines are a fairly young industry and this tax credit could boost sales by 40 to 50 percent, according to the American Wind Energy Association. A qualified small wind turbine generates less than 100 kilowatts of energy.
- The 2009 American Recovery and Reinvestment Act also provides incentives for energy producers to generate electricity from large scale wind turbines operations, reports the American Wind Energy Association. Electricity providers may claim up to a 2.1 cents tax credit for per kilowatt-hour. This also includes a 30 percent credit developing wind turbine facilities.
- In addition to federal tax incentives, most states offer some type of tax credit for producers and consumers of energy from wind turbines, reports the Database of State Incentives for Renewables and Efficiency. Since the exact credits can vary wildly from state to state, it is best for potential wind energy users to check the their state's regulations in the link to DSIRE in the Resource section.
- The future for wind turbine energy looks bright as the issues of global warming and dwindling oil supplies boost oil prices. Estimates from the World Wind Energy Association see wind power usage in 2010 doubling that of wind's 2006 world market share. Most wind turbines come from the United States, but India and China should also play a larger role in wind energy production.