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Recently the Emergency Economic Stabilization Act of 2008, H.R. 1424, was passed by Congress that includes a new federal investment tax credit to assist the public in offsetting the wind turbine cost for their homes, businesses or farms. Without any delay, president Bush signed the bill into law.

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.

In the past, the United States led the global small wind turbine industry, but it started to slump with other countries offering higher subsidies for household renewable energy solutions. So Ron Stimmel, a small wind advocate for the American Wind Association (AWEA), accepted the new Act with open arms, and he had this to say:

“We thank Congress for recognizing and supporting small wind systems as an important contributor toward energy security and a cleaner environment. This credit will help individuals cut their electric bills while combating global warming in a tangible way.”

This is the first federal tax credit for small wind power systems since 1985, and experts predict the legislation could expand the American wind energy industry by 40 percent or greater each year. And together with the soon-to-be finalized equipment certification system, this will aid in securing the U.S. as the leading market worldwide.

If it were not for the persistence of the AWEA requesting a 30% tax credit for small wind turbines (of no more than 100 kilowatts in capacity), perhaps the wind power marker would never have been able to compete equally with the photovoltaic (PV) market.

With both the wind and solar power industries operating in the same renewable energy market, it made sense that the legislation also offers tax relief for solar power installations. Small solar power owners receive 30% credit on the cost of the system, limited to four thousand dollars. And commercial solar owners get an unlimited 30% tax credit on their installation costs.

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.

Thanks to the new legislation, together with existing state tax incentives, everyone can benefit from having their own home solar power and small wind turbine at home. Whether you decide to invest in an expensive expert solar/wind energy system, or plan to build and install it yourself, massive power and tax savings are within your grasp. It just requires you to take some action.