If you want to qualify for the 30% federal investment tax credit on that new wind turbine in your backyard, make sure it meets new certification rules from the Internal Revenue Service.
In a notice that took effect on Jan. 26, the IRS said that small wind turbines (those with a capacity of no more than 100kw) must meet either a performance and safety standard of the American Wind Energy Association, or a standard published by the International Electrotechnical Commission, according to a statement posted by the Distributed Wind Energy Association.
The reason, says the association’s executive director, is to make sure that consumers aren’t misled by marketing hyperbole.
“The new certification requirement addresses the small, but persistent segment at the fringe of the industry that make wild assertions on efficiency, performance, and their special ability to work on buildings or very short towers,” association executive director Jennifer Jenkins said in a news release. “Now, in order to qualify for the federal tax credits, they will have to prove these claims to third-party experts. That will be very challenging or impossible for unproven designs with exaggerated performance, but will not pose a major barrier for the industry leaders.”
The Interstate Renewable Energy Council already maintains a list of small turbines that meet the Wind Energy Association’s standard.
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Turbines of up to 100kw in capacity must be certified if they are going to be eligible for a federal tax credit. The new rule took effect on Jan. 26.