Solar Energy Tax Credits Available through 2016

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. Qualified expenditures include labor
costs for on-site preparation, assembly or original system installation, and piping or wiring to connect 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.

Solar-Electric Systems

  • 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, 2016.
  • The home served by the system does not have to
    be the taxpayer’s principal residence.

Solar Water-Heating Systems

  • 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, 2016.
  • Equipment must be certified for performance by
    the Solar Rating Certification Corporation (SRCC)
    or a comparable entity endorsed by the government
    of the state in which the property is installed.
  • At least half the energy used to heat the dwelling’s
    water must be from solar in order for the solar
    water-heating property expenditures to be eligible.
  • The tax credit does not apply to solar waterheating
    property for swimming pools or hot tubs.
  • The home served by the system does not have to
    be the taxpayer’s principal residence.
Related Posts
No related posts for this content