Tax deductions and exemptions for renewable energy

These days, constructing homes is very expensive, as you have to pay lots of taxes. But now, you can take advantage of the incentives being a property owner, if you focus on efficient energy and renewable generation sources. Basically, these incentives in construction help you in improving the financial analytics of the project, which lowers its costs or provides you incentives on the same. With proper MEP engineering from New York Engineers, you get the advantage to save money with respect to taxes and availing financial incentives.

What advantages do you get with tax benefits?

Basically, there are two main major benefits you get:

Exemption: Exemption is a benefit, where you don’t need to pay taxes for some special services an products.

Credit: This kind of benefit allows you to deduct the amount from the normal tax you pay, but it is not the direct monetary benefit.

Some Points which can make you save major taxes

Tax reductions on applying Renewable Energy Systems:

The government has provided rebates on the installation of renewable energy systems on industrial, commercial and residential properties. This may increase the value of the property but it won’t increase the amount of tax when calculated with the exact amount.

Sales tax Exemptions:

Sales tax is stated to be very high in most of the parts, but some of the products are exempted from this. Likewise, the solar energy products are exempted from the sales tax and the property can take benefit from this. This special grant is available on those systems which produce heat, electricity, cool or mechanical energy from solar radiations It is also applicable on the technologies which store solar energy and applied it in one or the other form.

It is also applied to:

  • Photovoltaic
  • Hydroelectric generations
  • Geothermal
  • Heat Pumps integrated with geothermal energy.
  • Fuel cells.

Leave a Reply