Energy Credits for Small Wind

[valterra]

So I'm reading through the bailout bill "we" just passed.  Yaaaawwwwn.   It's at this address:

http://thomas.loc.gov/cgi-bin/query/z?c110:H.R.1424.enr:

Okay, there is a section called "SEC. 104. ENERGY CREDIT FOR SMALL WIND PROPERTY" that allows for a 30% tax CREDIT for "small wind" until 2016.  Maximum credit is $4000, which means $13,000 generator.  

"QUALIFYING SMALL WIND TURBINE- The term `qualifying small wind turbine' means a wind turbine which has a nameplate capacity of not more than 100 kilowatts."

There isn't any further definition that I can see.  I wonder if "The Dans" turbine kits would qualify?  If so, I certainly hope they see a significant increase in business.  And you could pretty much count me in.

Anyone with any knowledge in taxes care to chime in?

And I hope DanB and company don't up the price by 30% as of this writing.   :-)    Not at least until after I buy one!!!   lol.

[jimjjnn]

Dan's won't qualiify unless they put a nameplate on it and get it UL,CAA etc, certified

[bsafe]

Hmm motor conversions have nameplates....

[valterra]

I bet THAT costs a lot of money!  DanB, you got some barrels of grease for all those palms in Washington?    :-)

[Ungrounded Lightning Rod]

Compute a maximum safe output rating for your turbine using a reasonable methodology, etch it into a nameplate, and fasten it to the turbine.  B-)

I doubt anybody will seriously argue that your homebrew turbine is good for more than 100 KW.

= = ==

The devil here may be in details - like other laws or (more likely) administrative regulations on how to rate turbines, requirements for certifications, etc.  (And watch out for new rulemaking when the executive branch industry regulators and/or the IRS get around to implementing this.)

Does it cover the the other parts of the system (batteries, inverter, etc.)?  I'd be inclined to install the bulk of the system with UL-certified stuff and claim those costs, plus materials and any hired labor costs on the homebrew parts, then argue with the tax guys about whether they'll allow it if they decide to audit me.  Worst case I'd expect is to have to refund the deduction (plus maybe a late-payment penalty) on the homebrew part.  But I'd talk with my tax accountant first.

[Ungrounded Lightning Rod]

I doubt anybody will seriously argue that your homebrew turbine is good for more than 100 KW.

Especially if the battery fuse plus the nameplate rating on the inverter and the breakers on your DC loads total to less than that, so you couldn't load the system as installed at more than 100 KW.

[valterra]

not deduction....  CREDIT   :-)  

I am with you 100% on what you said.  Yes, it says "system," which, with solar, includes all the accessories.  Unless I am wrong about that!