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Just a few months back, before President Bush left office, he signed the revised Emergency Economic Stabilization Act of 2008 into law. In that legislation is a an opportunity for small businesses, farms, and residents to credit some of their small wind turbine cost against their tax expenses.

The Act offers a federal tax credit for 30% of the total installed cost of any wind power system with a 100 kilowatt capacity or less, but the credit will not exceed $4,000. The limitation of the Act is that it only applies to new systems installed from 3 October 2008 through to December 2016, so any current systems will get no tax relief. In addition, for home wind turbines, the credit is further limited to the lesser of $4,000 or $1,000 per kW of capacity.

America, who has typically lead the worldwide small wind turbine market recently begun to feel pressure from other nations that offered enticing incentives for small renewable energy systems. So the new legislation was warmly welcomed by a Small Wind Advocate of the American Wind Energy Association (AWEA), Ron Stimmel, who said:

“The AWEA thanks President Bush for acknowledging and promoting the role of small wind power solutions towards our energy security and environmental concerns. These subsidies will promote Americans to save on energy costs, while reducing global warming in a big way.”

This bill is the first federal incentive for small wind turbines since 1985, and industry members believe the credit could grow the U.S. wind power market by 40% or more annually. And along with the upcoming equipment certification scheme, it will help secure it as the global leading market.

The legislation was brought about thanks to the AWEA’s persistent requests for the the wind power market to be able to compete equally with the solar power industry. The AWEA was determined for small wind turbine owners to receive a 30% tax credit on the cost, provided their systems were no bigger than one kilowatts.

Since the two markets compete in the same renewable energy industry, the Act also provides tax relief for solar power systems of 30 percent of the cost, restricted to $4000. Larger, commercial solar energy solutions get the same, but unrestricted 30% credit.

How does the new legislation influence privately made small wind turbines? It looks like do-it-yourself wind power systems can receive some tax incentives, as long as it can be shown when and how much costs were. Just remember, to get professional legal advice to help you enjoy the best tax credit due.

With all these state and federal tax credits for renewable energy homeowners, it makes sense to get your own small wind turbine at home. No matter whether you buy an expensive commercial home wind turbine, or learn to build a cheaper one yourself, the potential for you to save a lot of money on electricity and tax expenses is a decision away. It just requires you to make the right choice.