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Through 2010, there were a few major federal incentives for business considering energy-efficient upgrades and renewable energy property. There are fewer incentives today but some do still exist for specific property. Even though the Production Tax Credit is in danger of expiring and the 1603 Program has expired, tax credits for commercial wind turbines do still exist.

 

The Production Tax Credit (PTC) is a tax credit calculated on the number of kilowatt hours produced by renewable energy property. The PTC is scheduled to end Dec. 31, 2012 and would spell a major blow to manufacturers and customers of wind energy. Customers, who are mostly utilities that installed large wind, would no longer be able to receive tax credit that were available at the time of a wind system’s purchase, while manufacturers can no longer use the tax credits in their presentations to potential customers. Many websites such as the American Wind Energy Association are voicing their support for a PTC extension. View their update here

 

Commercial wind turbines have been dealt their own blow with an incentive expiring. The American Reinvestment and Recovery Act (ARRA) of 2009 allowed wind turbine customers to receive a payment from the Department of the Treasury about 30 days after installation. The program, officially named “1603 Program: Payments for Specified Energy Property in lieu of Tax Credit,” ended in Dec 2011 after a one year-extension late in 2010. The 1603 Program was credited with encouraging more than $30 Billion in investment in energy property.

 

The ARRA did provide mid-term support for commercial wind with a change in the tax code. The ARRA eliminated a $4,000 maximum credit for businesses that installed renewable energy property; there is no longer a maximum credit. The tax code for 2012 to 2016 allows businesses a 30% tax credit on the installed cost of a wind turbine system. The credit (or refund) is received when a business files their taxes for the previous year. When new forms are available through the IRS, Form 3468 will no longer have a maximum credit for small wind.

 

Renewegy makes a 20kW wind turbine that can be classified as a small wind turbine and a commercial wind turbine. For product information click here.

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