Residential 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
  • Applicable Sectors:     Residential
  • Amount:    30%
  • Maximum Incentive:    Solar-electric systems placed in service before 1/1/2009: $2,000
  • Solar-electric systems placed in service after 12/31/2008: no maximum
  • Solar water heaters placed in service before 1/1/2009: $2,000
  • Solar water heaters placed in service after 12/31/2008: no maximum
  • Wind turbines placed in service in 2008: $4,000
  • Wind turbines placed in service after 12/31/2008: no maximum
  • Geothermal heat pumps placed in service in 2008: $2,000
  • Geothermal heat pumps placed in service after 12/31/2008: 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 by comparable entity endorsed by the state in which 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 requirements. Fuel cells must have electricity-only generation efficiency greater than 30%.
  • Carryover Provisions:    Excess credit may be carried forward to succeeding tax year
  • Start Date:    1/1/2006
  • Expiration Date:    12/31/2016
  • Web Site:     http://www.energystar.gov/taxcredits