The $2,000 tax credit limit for residential solar systems has been lifted, meaning that homeowners can get a 30% tax credit on the solar panels they install after Dec. 31, 2008. That will save folks who want to install a system serious money — especially for those who live in states with generous state rebates. (If you buy a $24,000 3-kilowatt solar array in California — big enough to power the average home - you can claim a $7,200 federal tax credit. Add in the state solar rebate and the cost of the system is cut in half.)
The bill also includes tax credits of $3,000 or more toward the purchase of fuel-efficient, plug-in hybrid vehicles. To learn more about plug-in hybrids, click here.
There are also incentives for the production of homegrown renewable fuels, such as biodiesel and renewable diesel, and for the installation of E-85 pumps for consumers to fill up flex-fuel vehicles.