Residential Renewable Energy Tax Credit

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Residential Renewable Energy Tax Credit

Have you made energy-efficient upgrades to your home? Your home may be eligible for a renewable energy tax credit.

State: Federal
Incentive Type: Personal Tax Credit
Eligible Renewable/Other Technologies: Solar Water Heat, Photovoltaics, Wind, Fuel Cells, Geothermal Heat Pumps, Other Solar-Electric Technologies, Fuel Cells using Renewable Fuels
Applicable Sectors: Residential
Amount: 30%
Maximum Incentive: Solar-electric systems placed in service after 2008: no maximum
Solar water heaters placed in service after 2008: no maximum
Wind turbines placed in service after 2008: no maximum
Geothermal heat pumps placed in service after 2008: no maximum
Fuel cells: $500 per 0.5 kW
Eligible System Size: Fuel cells: 0.5 kW minimum
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. Geothermal heat pumps must meet federal Energy Star criteria. Fuel cells must have electricity-only generation efficiency greater than 30%.
Carryover Provisions: Generally excess credit may be carried forward to next tax year
Start Date: 1/1/2006
Expiration Date: 12/31/2016
Web Site: http://www.energystar.gov/taxcredits

Geothermal heat pumps

  • There is no maximum credit for systems placed in service after 2008.
  • Systems must be placed in service on or after January 1, 2008, and on or before December 31, 2016.
  • The geothermal heat pump must meet federal Energy Star criteria.
  • The home served by the system does not have to be the taxpayer’s principal residence.