Will the Solyndra Scandal Affect Solar Tax Breaks?Published:
Solyndra is a solar panel manufacturing company that recently filed for bankruptcy. The problem is that the company got a $535 million taxpayer-funded loan from the federal government in 2009. With Solyndra’s financial records being revealed, critics are asking why the White House invested in a company that was seemingly on the path to bankruptcy.
The Solyndra story brings another issue into question, which is what will happen to the solar energy tax breaks that many businesses and homeowners enjoy? As lawmakers begin to lose confidence in the promises of green energy, citizens may begin to see less tax incentives geared towards green energy use.
One tax credit that homeowners can currently take advantage of is the federal Energy Efficiency Credit, available when you install energy-efficient equipment in your home. If you purchase a geothermal heat pump, a solar panel, a solar water heater, a fuel cell or a wind energy system, not only can you deduct 30% of the cost of this product but you can also carry your deduction forward into the following tax year. This may be useful in situations where the amount you would be able to deduct exceeds your tax liability for the year. This is called a renewable Residential Energy Tax Credit.
For more information about Solyndra and solar energy tax breaks, please visit the following websites: