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A private effort to enhance communications before and after hurricanes and other emergency events

Solar Power Tax Credits In the Energy Policy Act of 2005

The Federal Government has made converting to solar power a bit easier through recent legislation.

The Energy Policy Act of 2005 passed Congress in July of 2005.  The President signed it into law on August 8, 2005.  It offers solar power tax credits to homeowners and business interests. 

Homeowners can install solar cells and equipment and obtain tax credits which are capped at $2,000.  The law provides credits for solar electric or water heating systems.  The credit is due to expire at the end of 2009.

Businesses can receive a tax credit to cover the cost of the system.  The business credit terminates at the end of 2011. 

According to the Solar Energy News Center on June 28, 2005, "the legislation would help cut the cost of solar power by half, create 20,000 new American jobs, and save US consumers more than $12 billion on electricity and natural gas bills in the next decade." 

Solar power in emergency preparedness is extremely important.  It will be decades before power lines are uniformly placed underground to prevent interruptions from weather events.  Even grids placed below the ground are subject to black outs under the appropriate circumstances in some areas.  After catastrophic storms events, the need for energy to power computes, televisions, radios and telecommunications equipment can be supplied by the use of solar power. 

For more information on solar power tax credits, consult your CPA or accountant or contact the Internal Revenue Service at www.IRS.gov.