The almost $800 billion economic recovery bill includes a bigger tax break for residential solar hot-water installations.
Homeowners already could take a tax credit on up to 30
percent of the cost of a solar hot-water system installation, but the total
amount was capped at $2,000. The economic stimulus bill, expected to be signed
by President Barack Obama tomorrow, removes the cap.
This puts residential solar thermal systems on par with
residential solar PV. Last year, a massive financial industry bailout bill
renewed the federal tax credits for both solar PV and thermal for eight more
years. However, a separate provision lifted a $2,000 cap on the federal tax credit
for solar electric systems for homes.