Do Small Wind Turbines Qualify For Tax Credits?

Small Wind Turbine Tax Credit Details

The ITC program provides a 30% tax credit for small wind turbines with a capacity of at least 5 kW. This credit can be claimed against federal income tax liability, and it can also be claimed against alternative minimum tax (AMT) liability. The credit amount is calculated as 30% of the total cost of the turbine and installation, including the cost of the turbine, tower, and inverter.

Qualifying Costs and Exclusions

To qualify for the ITC, the small wind turbine must be used for generating electricity for a residence, farm, or small business. The turbine must also be installed on the customer’s own property, and it must meet certain technical requirements, such as having a minimum capacity of 5 kW and a maximum capacity of 100 kW. The ITC does not apply to turbines that are used for commercial or industrial purposes. Additionally, the credit is not available for turbines that are used for research or development purposes.

Certification and Installation Requirements

To qualify for the ITC, the small wind turbine must be certified by a recognized testing laboratory, such as the Small Wind Certification Council (SWCC) or the International Electrotechnical Commission (IEC). The turbine must also be installed by a qualified installer, and the installation must meet certain technical requirements, such as having a minimum wind speed of 7.5 mph and a maximum wind speed of 140 mph. The installer must also provide documentation to the customer, including a certification letter and a description of the installation.