Energy Credits Available for Solar Products
If you are building a new home, you can qualify for the tax credit for geothermal heat pumps, photovoltaics, solar water heaters, small wind energy systems and fuel cells, but not the tax credits for windows, doors, insulation, roofs, HVAC, or non-solar water heaters.
A 30% tax credit (including labor and installation), with no upper limit, is available for consumers building new homes (through 2016) for:
Photovoltaics
Solar Water Heaters
Geothermal Heat Pumps
Small Wind Energy Systems
Fuel Cells (up to $500 per .5 kW of power capacity)
To qualify for the fuel cell credit, the new home you are building must be planned as your "principal residence." The credit for photovoltaic, solar water heaters, geothermal heat pumps, and small wind energy systems does not have to be for your principal residence; so, rental units, second homes, etc... are all eligible. See the Instructions attached to 2008 IRS Form 5695 to help you further with this provision.
The tax credit for these products is ONLY available for existing homes:
Windows/Skylights
Doors
Insulation
Roofs (metal and asphalt)
HVAC
Water Heaters (non-solar)
Bio-mass Stoves
Geo-Thermal Heat Pump Geo-Thermal Heat Pump Same criteria as ENERGY STAR:
Closed Loop:
EER >= 14.1, COP >= 3.3
Open Loop:
EER >= 16.2, COP >= 3.6
Direct Expansion:
EER >= 15, COP >= 3.5
30% of the cost All ENERGY STAR geo-thermal heat pumps qualify for the tax credit.
What about water-to-water geothermal heat pumps?
Must be “placed into service” before December 31, 2016.
Solar Energy Systems Solar Water Heating At least half of the energy generated by the “qualifying property” must come from the sun. Homeowners may only claim spending on the solar water heating system property, not the entire water heating system of the household.
The credit is not available for expenses for swimming pools or hot tubs.
The water must be used in the dwelling.
The system must be certified by the Solar Rating and Certification Corporation (SRCC).
30% of cost All ENERGY STAR solar water heaters qualify for the tax credit.
Must be placed in service before December 31, 2016.
Photovoltaic Systems Photovoltaic systems must provide electricity for the residence, and must meet applicable fire and electrical code requirement. 30% of cost Must be placed in service before December 31, 2016.
Small Wind Energy Systems Residential Small Wind Turbines Has nameplate capacity of not more than 100 kilowatts. 30% of cost Must be placed in service before December 31, 2016.
Fuel Cells Residential Fuel Cell and microturbine system Efficiency of at least 30% and must have a capacity of at least 0.5 kW.
30% of the cost, up to $500 per .5 kW of power capacity Must be placed in service before December 31, 2016.
