TurboTax / Tax Calculators & Tips / All Tax Guides / General Tax Tips / Video: Federal Tax Incentives: The Wind Power Tax Credit

Video: Federal Tax Incentives: The Wind Power Tax Credit

Updated for Tax Year 2015


OVERVIEW

The "Wind Power" tax credit is just one of the many federal tax incentives available to taxpayers in the United States. Learn about the "Wind Power" tax credit with help from TurboTax in this video clip.


Video transcript:

Hello, I'm Jeremy from TurboTax with important news on how you can qualify for the wind power tax credit this year.

Have you ever driven down the highway and seen hundreds of large fan-like structures spinning in the breeze? These wind turbines are generating electricity without polluting the environment.

Smaller versions of these wind turbines are available that can generate electricity for your home. The federal government encourages you to purchase and install these wind turbines by giving you a tax credit to offset some of the expenses.

The wind power tax credit covers 30% of the cost to purchase and install the turbines at your main home plus one other.

  • If you plan on taking advantage of the credit, you must install the turbines by 2016.
  • Because there is no maximum credits you can claim, your tax savings are likely to be substantial.

However, because your tax reduction can be significant, be sure to keep every document that proves your cost. The last thing you want is to spend all that money and to lose the credit because you can't prove it to the IRS.

Anyone who claims a credit must file Form 5695. If your credit is larger than the amount of tax you owe, you can use the excess in the future tax year, but no later than 2016.

For more tax tips and guidance, visit TurboTax.com.

Get every deduction you deserve

TurboTax Deluxe searches more than 350 tax deductions and credits so you get your maximum refund, guaranteed.

For only $54.99$34.99*
Start for Free

The above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on taxes, your investments, the law, or any other business and professional matters that affect you and/or your business.


Security is built into everything we do
Here's how
* Important Offer Details and Disclosures
  • Try for Free/Pay When You File: TurboTax online and mobile pricing is based on your tax situation and varies by product. Free 1040EZ/A + Free State offer only available with TurboTax Federal Free Edition; Offer may change or end at any time without notice. Actual prices are determined at the time of print or efile and are subject to change without notice. Savings and price comparisons based on anticipated price increase expected 3/18/16. Special discount offers may not be valid for mobile in-app purchases.
  • TurboTax CD/Download products: Price includes tax preparation and printing of federal tax returns and free federal efile of up to 5 federal tax returns. Additional fees apply for efiling state returns. E-file fees do not apply to New York state returns. Savings and price comparison based on anticipated price increase expected 3/18/16. Prices subject to change without notice.
  • Anytime, anywhere: Internet access required; standard message and data rates apply to download and use mobile app.
  • Fastest refund possible: Fastest tax refund with efile and direct deposit; tax refund timeframes will vary.
  • Pay for TurboTax out of your federal refund: A $X.XX Refund Processing Service fee applies to this payment method. Prices are subject to change without notice.
  • About our TurboTax Product Experts: Customer service and product support vary by time of year.
  • About our credentialed tax experts: Live tax advice service is available via phone for your toughest tax questions; fees may apply. Service, experience levels, hours of operation and availability vary, and are subject to restriction and change without notice. Not available for TurboTax Business customers.
  • #1 best-selling tax software: Based on aggregated sales data for all tax year 2014 TurboTax products.
  • Most Popular: TurboTax Deluxe is our most popular product among TurboTax Online users with more complex tax situations.
  • Benefit Assist: After you file, TurboTax automatically shows you a full list of government benefits you may qualify for, like Food Stamps or reduced phone & utilities. Plus, we help you apply, saving you time and making it easier than ever to get more money! Estimate based on calculation of Benefit Assist users from tax year 2013 and published reports of average benefit and savings amounts from federal and state programs. Benefit Assist users who received one or more federal or state benefits received on average $576 (based on survey March-June 2015). Actual amounts and qualifications based on your individual situation; some individuals will not qualify. Feature may not be available for all customers.