RESIDENTIAL RENEWABLE ENERGY TAX CREDIT
For Personal/Residential customers
|Eligible Renewable/Other Technologies||Solar Water Heat, Solar Photovoltaics, Geothermal Heat Pumps, Wind (Small), Fuel Cells using Renewable Fuels|
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*
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.
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 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.
- 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.
Public Information - IRS
U.S. Internal Revenue Service
1111 Constitution Avenue, N.W.
Washington, DC 20224
Phone: (800) 829-1040