Renewable Energy Tax Credits

 

Renewable Energy Can Lower Your Federal Tax Bill as Well as Your Energy Bills

 

The American Recovery and Reinvestment Act of 2009 (ARRA) extends, expands, and simplifies the federal income tax credits for homeowners who make energy efficiency home improvements.

Please note: We at Eco Depot USA  are experts on Renewable Energy, not taxes, and we do not provide tax advice; we urge you to consult a tax professional.

A taxpayer may claim a credit of 30% of qualified expenditures for a system that serves a dwelling unit located in the United States and used as a residence by the taxpayer. Expenditures with respect to the equipment are treated as made when the installation is completed. If the installation is on a new home, the "placed in service" date is the date of occupancy by the homeowner.

 

Expenditures include labor costs for onsite preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. The maximum allowable credit, equipment requirements and other details vary by technology, as outlined below.  

        Solar-electric property

  • There is no maximum credit for systems placed in service after 2008. The maximum credit is $2,000 for systems placed in service before January 1, 2009.  
  • Systems must be placed in service on or after January 1, 2006, and on or before December 31, 2016.  
  • The home served by the system does not have to be the taxpayer’s principal residence.

        Solar water-heating property

  • There is no maximum credit for systems placed in service after 2008. The maximum credit is $2,000 for systems placed in service before January 1, 2009.  
  • Systems must be placed in service on or after January 1, 2006, and on or before December 31, 2016.  
  • Equipment must be certified for performance by the Solar Rating Certification Corporation (SRCC) or a comparable entity endorsed by the government of the state in which the property is installed.  
  • At least half the energy used to heat the dwelling's water must be from solar in order for the solar water-heating property expenditures to be eligible.  
  • The tax credit does not apply to solar water-heating property for swimming pools or hot tubs.  
  • The home served by the system does not have to be the taxpayer’s principal residence.

    Small wind-energy property
  • There is no maximum credit for systems placed in service after 2008. The maximum credit is $500 per half kilowatt, not to exceed $4,000, for systems placed in service in 2008.  
  • Systems must be placed in service on or after January 1, 2008, and on or before December 31, 2016.  
  • The home served by the system does not have to be the taxpayer’s principal residence.

 

Please note: We at Eco Depot USA  are experts on Renewable Energy, not taxes, and we do not provide tax advice; We urge you to consult a tax professional.  

 

 

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