On October 3, 2008, the Emergency Economic Stabilization Act of 2008, H.R. 1424, was enacted into law and includes a new federal-level investment tax credit to help consumers purchase small wind turbines for home, farm, or business use. Owners of small wind systems with 100 kilowatts (kW) of capacity and less can receive a credit for 30% of the total installed cost of the system. The credit will be available for equipment installed through December 31, 2016. This legislation marks the first federal incentive for small wind systems since 1985. The incentive was further expanded through the American Recovery and Reinvestment Tax Act of 2009, which removed the financial cap that had been present in the 2008 legislation..
Home-owners, farmers, and businesses that install wind turbines with not more than 100 kilowatts of nameplate capacity are eligible for the incentive.
To qualify, tax payers will need to have evidence regarding:
Taxpayers installing on-site wind systems at their residence should use the IRS Residential Energy Efficient Property Form 5695. For businesses, use Form 3468 for small wind energy property.