Solar Energy Tax Credits

The US Federal Government offers a 30% solar energy tax credit claim for qualified solar power expenditures on dwelling units located within the United States that are used as a residence by the taxpayer.

Here are a few details regarding the  solar energy federal tax credits:

1 –  There is no maximum for systems placed in service after 2008.

2 –  Solar energy systems must be installed and in service after January 1, 2006 and before December 31, 2016 to receive tax credits.

3 – Expenditures with respect to the equipment are treated as made upon completion of the installation.

4 –  If the installation is for a new home, the time of service date will begin when the occupancy of the home begins.

5 –  The home where the solar system is installed does not have to be the principle residence of the taxpayer.

6 –  A solar heating system must be certified by the Solar Rating Certification Corporation or a comparable entity approved by the government.

7 –  Solar energy tax credits are not available for solar water heating for swimming pools or hot tubs.

These federal tax credits and codes come originally from the Energy Policy Act of 2005, and revised and extended by the Energy Improvement and Extension Act of 2008.

Some states also offer solar energy tax credits, but laws and regulations change from state to state.