Residential Renewable Energy Tax Credit

30% FEDERAL TAX CREDIT AVAILABLE
RESIDENTIAL RENEWABLE ENERGY TAX CREDIT

For Private/Personal/Individual Tax Payer Customers (Non-Business)

Eligible Renewable/Other Technologies	Solar Water Heat, Solar Photovoltaics, Geothermal Heat Pumps, Wind (Small), Fuel Cells using Renewable Fuels
Applicable Sectors	Residential
Incentive Amount	Up to 30%
Maximum Incentive	Solar-electric systems placed in service after 2008: no maximum Solar water heaters placed in service after 2008: no maximum
Eligible System Size	Small wind turbines: 100 kW or less Fuel cells: 0.5 kW or greater Microturbines: 2 MW or less CHP: 50 MW or less*
Equipment Requirements	Solar water heating property must be certified by SRCC or a comparable entity endorsed by the state where the system is installed. At least half the energy used to heat the dwelling's water must be from solar.
Carryover Provisions	Excess credit generally may be carried forward to next tax year

Note: The Bipartisan Budget Act of 2018, signed in February 2018, reinstated the tax credit for fuel cells, small wind, and geothermal heat pumps. The tax credit for all technologies now features a gradual step down in the credit value.

A taxpayer may claim a credit of up to 30% of qualified expenditures for a system that serves a dwelling unit located in the United States that is owned 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 at a new home, the "placed in service" date is the date of occupancy by the homeowner. Expenditures include labor costs for on-site 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 Technologies.

Solar-electric property

30% for systems placed in service by 12/31/2019
26% for systems placed in service after 12/31/2019 and before 01/01/2021
22% for systems placed in service after 12/31/2020 and before 01/01/2022
There is no maximum credit for systems placed in service after 2008
Systems must be placed in service on or after January 1, 2006, and on or before December 31, 2021
The home served by the system does not have to be the taxpayer’s principal residence

In order to apply for the Federal Incentives, visit the following links to download the Form 5695 and instructions on how to fill the form out.

Download IRS Form 5695