FEDERAL LEGISLATION

The New Economic Stimulus Bill has ramifications for solar installations.  The Federal Goverment is offering homeowners a 30% Federal Tax Credit.  This is a dollar for dollar reduction on any money owed on Federal Taxes and can be used over two years. This program is set up through 2016.  Commercial (for-profit businesses only) are offered a 30% Federal Tax Credit or Grant.  The Federal Tax Credit (ITC) is good until 2016 and the bill allows the tax credit to be used to offset both regular and alternative minimum tax (AMT).  The five-year accelerated depreciation allowance for solar property is permanent and unaffected by passage of the eight-year extension of the solar ITC. If a company elects they can take a grant instead.  This is also a 30% grant but must be placed in service in 2009 or 2010, or placed in service by the specified credit termination date, if construction began in 2009 or 2010. The Treasury will need a few months to set-up this program but has promised to reiumburse businesses within 60 days of receiving their application and is looking to July 2009 to open the grant program. The rebates are not treated as income.  The systems are eligible for a bonus 50% depreciation if placed in service during 2009.

PENNSYLVANIA  LEGISLATION

Heat Shed has been approved as an authorized installer for the PA Sunshine Program.   We are currently installing systems that were approved for the rebates from the PA Sunshine Program.

The PA Sunshine Program will rebate a residential customer $2.25 per watt for qualifying systems up to 10kW.  Commercial customers can install systems up to 200 kW to receive a rebate starting at $2.25 up to 10kW, $2.00 from 10kW-100kW, and $1.75 from 100kW-200kW.  Either residential or commercial customers can elect to install larger systems, but the state will limit the rebate amounts to 10kW for homes and 200kW for businesses.  Once the state has approved an applicant for a rebate, you will receive email confirmation and you will have a full year from the date of the email to have the system installed.  The rebate is only issued once the final paperwork has been sent in to Harrisburg and the independent inspection team has provided an approval.  Once all this has been submitted to the PA Sunshine Program then you are sent to the accounting office for your rebate remittal.  This is reported to take up to 60 working days which is about 12 weeks.  We currently have no customers who have received a rebate, but the time has not been very long and the state just recently hired the inspection company.  This is a growing process for Harrisburg and  also for all of the installing companies that are listed on the authorized installer list.  Heat Shed had experience in New Jersey with their rebate program, so we had some idea of what would be involved and were able to anticipate some of the requirements.  Also, Harrisburg is  under-staffed in this program and the hard working people trying to make this happen for all  of us deserve alot of credit.

It also may be important to note that Harrisburg has stated that the rebate will be treated as income and you will be sent a 1099 on the rebate amount.  It does not effect the Federal 30% tax credit, which would be at the full price of the installation.