image114

Tax credits

Residential Federal Tax Credit Information - Solar & Wind

  

RESIDENTIAL FEDERAL TAX CREDIT INFORMATION

Expiration Date: 12/31/2021

Program Type: Personal Tax Credit

Rebate Amount: 30%* 

Summary: 

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.

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.

Small wind-energy 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, 2008, on or before December 31, 2021.

· The home served by the system does not have to be the taxpayer’s principal residence.

Learn More

Further Information from the US Department of Energy 

image115

Commercial solar / wind tax rebates and incentives

A good source of information on current tax incentives and rebates is DSIRE, Database of State Incentives for Renewables & Efficiency®. They strive hard to keep the information current in this fast paced industry.

DSIRE Website Link