Solar power technology has been around for a long time, but its popularity among consumers as an alternative source of energy has grown tremendously in the last few years. No doubt that solar tax credits, originally enacted by Congress in 2005, were a contributing force in solar's rise to energy-efficient stardom.
As part of the $700 billion bail-out package passed last year, Congress extended the federal tax credit for renewable energy production for another year. If you haven't already installed a solar hot water heater or photovoltaic system in your home, don't fret because there is still time to take advantage of the federal government's 30-percent solar tax credit.
In addition to solar, Congress extended the tax credit for one year to the production of other energy sources like geothermal, closed-loop biomass and hydropower. It also created a new category for energy production that will receive the federal tax credit: marine renewables. This category will include energy derived from waves, tides and currents.
Homeowners have something else to celebrate. The $2,000 monetary cap for residential solar electric installations was eliminated, which means you can claim the entire 30 percent in the same year as the installation.