Incentives, Rebates, Grants & Loans

There has never been a better time to reduce the cost of your renewable project that right now in 2011!

While Texas doesn’t currently sponsor a state-wide rebate program like some other states, the current 30% Federal income tax credit for individuals and businesses, as well as the property tax exemption and franchise tax deduction, make renewable energy projects a sound and safe investment.

Also, many local utility companies offer rebate programs based on the installed kWh rating of the project. For a comprehensive list of financial incentives for the State of Texas, including a list of the local utility companies with loan and rebate programs go HERE.

For a comprehensive list of financial incentives from the federal government and its agencies, go HERE.

In addition, bank financing is also available. The information below was provided to Bergey dealers in March, and highlights the FHA Title-1 Home Improvement Program from Admirals Bank, one of the largest Title-1 lenders in the country.

  • Loans decisions are made within 12 hours.
  • No equity required
  • No appraisal necessary
  • Obtain up to $25,000 for a single family home
  • Low fixed rates
  • Flexible payment terms of up to 20 years with no prepayment penalties
  • Interest may be tax-deductible (consult a tax advisor)

  • Federal 30% Investment Tax Credit and Monetized Grant (USA): The federal ITC program was recently enacted in the American Recovery and Reinvestment Act of 2009 and is applicable to any wind and solar power system sized at 100 kW or less. If not utilizing another federal grant like REAP or VAPG, you can choose to monetize the ITC for up-front cash to fund your project.
  • Tax-deductible depreciation (USA): As part of your economic analysis, you will want to take into account that you can depreciate 100% your wind or solar installation in 2011, if installed by December 31st 2011. If installed after 2011, depreciation schedule is 50% first year, and remaining over the next four.
  • If yours is a small business located in an eligible rural area, or if it derives 50% or more of its gross income from agricultural production or other farming and ranching activities, you may be eligible for USDA grant and loan assistance. Check the Rural section for applicable programs. An entity is considered a small business in accordance with the Small Business Administration’s (SBA) small business size standards NAICS code. Check HERE
  • In Texas, a corporation or other entity subject the state franchise tax to deduct the cost of a solar or wind project from the franchise tax. Entities are permitted to deduct 10% of the amortized cost of the system from their apportioned margin. The franchise tax is Texas’s equivalent to a corporate tax.

Residential Renewable Energy Tax Credit

  • A taxpayer may claim a credit of 30% of qualified expenditures for a system that serves a dwelling unit located in the United States and used as a residence by the taxpayer. Expenditures with respect to the equipment are treated as made when the installation is completed. If the installation is at a new home, the “placed in service” date is the date of occupancy by the homeowner. Expenditures include labor costs for on-site preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. The excess credit may be carried forward until 2016, but it is unclear whether the unused tax credit can be carried forward after then.
  • The home served by the system does not have to be the taxpayer’s principal residence.
  • The full added value of a Renewable Energy Systems is exempt from property taxes in Texas

Farm and ranching operations can consider a few different options for financing their wind power projects and we will assist with the process every step along the way.

  • USDA-REAP Grant for Agricultural Producers (USA): The new Rural Energy for America Program (REAP) can provide $125,000 in cash grants. You can combine this grant with the federal Investment Tax Credit (see below). This grant is available to agricultural producers, rural small businesses, and rural electric cooperatives.
  • USDA – Rural Energy for America Program (REAP) Loan Guarantees: The REAP Guaranteed Loan Program encourages the commercial financing of renewable energy including solar and wind, and energy efficiency projects. Under the program, project developers will work with local lenders, who in turn can apply to USDA Rural Development for a loan guarantee up to 85 percent of the loan amount.
  • Federal 30% Investment Tax Credit and Monetized Grant (USA): The federal ITC program was recently enacted in the American Recovery and Reinvestment Act of 2009 and is applicable to any wind and solar power system sized at 100 kW or less. If not utilizing another federal grant like REAP or VAPG, you can choose to monetize the ITC for up-front cash to fund your project.
  • State grants and incentives (USA): States like Massachusetts, Pennsylvania, New Jersey, New York, Ohio, and Vermont offer attractive incentives for wind and solar energy projects. Combined with the federal REAP grant, you could get a turbine spinning and begin reaping economic rewards in just a few years.
  • Tax-deductible depreciation (USA): As part of your economic analysis, you will want to take into account that you can depreciate 100% your wind or solar installation in 2011, if installed by December 31st 2011. If installed after 2011, depreciation schedule is 50% first year, and remaining over the next four.
  • Value Added Producer Grant (VAPG) for Farms (USA): This program can provide up to $50,000 for planning grants and up to $250,000 in project grants. You can combine this grant with other state or utility programs, as well as the federal Investment Tax Credit (see below). This grant is available to independent and group producers, agricultural or ranch cooperatives, and majority-controlled producer-based business ventures.