Business Owners get Bailout Money

The American Recovery and Reinvestment Act, which came into law on February 17, 2009, has many benefits for those who install a solar system for their business. These benefits include renewable energy grants and improved tax credits.

Renewable Energy Grants
This new grant will give immediate aide to business owners who will be installing a solar system in their home between 2009 and 2010. The creation of these grants through the Department of Treasury will replace the 30% investment tax credits with up-front cash. The business will submit an application to the Department of Treasury when solar installation is complete and checks will be shipped out within 60 days to help offset the cost of installing the solar system. Any solar electric system whose construction begins before December 31, 2009 and is placed in service before January 1, 2017, will qualify for the same grant.

Removes Limits on Solar Water Heating
This provides a personal tax credit for the purchase of a qualified solar water heating property that is used for a purpose other than heating a swimming pool or hot tub. Before the American Recovery and Reinvestment Act, the ITC (investment tax credit) had a cap of $2,000. This new act removes the $2,000 cap and provides the full 30% credit for a qualified solar water heating property.