Photovoltaic and solar thermal systems each carry an independent 30% federal tax credit. A federal tax credit is a dollar for dollar reduction on owed taxes. In addition to the tax credit, renewable equipment is categorized under the federal Modified Accelerated Cost-Recovery System (MACRS) as a five year property class. State specific incentives vary greatly. Kentucky incentives currently are offered for projects over 50kW and $1M at the discretion of Kentucky Economic Development Finance Authority (KEDFA) and include at least sales tax reimbursal. Ohio incentives include sales and property tax exemption. Competitive grants are also available through the Ohio Department of Development (ODOD). http://www.odod.state.oh.us/cdd/oee/elfgrant.htm Currently, TVA offers a $0.15kWh incentive for residential renewable systems in areas served by TVA power distributors. In Kentucky these electric companies include: Hickman-Fulton Counties RECC, Pennyrile RECC, Tri-County REMC, Warren RECC, and West Kentucky RECC. TVA service area also includes large portion of Tennessee and some portions of Virginia. A list of current incentives can be found at: http://www.dsireusa.org/