All of you know that the government has “Bailed Out” the financial system. But, did you know that some very crafty lawmakers placed the energy tax credits into the the bail out bill. That’s right! And… they will expire at the end of 2016! What does this mean for most Americans?

First: This is a tax credit. When you file your personal income tax return, this will reduce the tax you pay. i.e. this comes off the bottom line, not the top.The best part of this is, if the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. So you may not have to pay taxes for a few years if you get a good sized system.

Second: What amount is the credit? 30% of the total costs associated with the installation. And there is no limit like the original incentive! Roll out the solar panels please.

Thirdly: Solar hot water still has a $2000 limit. This should be fine because the total cost of the system would have to be over $6666. Most systems do not go over that amount anyway.

What does this mean for us? Start planning and researching, alternative energy is not as far out of reach as you think? This is only one slice of the money pie. You may live in a state that has incentives too. Check out this site to learn more.