Green Rewards from Uncle Sam

Quick Reference:

Tax Credits for Solar Energy Systems

Item	Tax Credit	Tax Credit Requirements
Solar Water Heating	30% of cost, no limit	All Energy Star solar water heaters qualify for the tax credit. Use IRS Form 5695. Must be placed in service before December 31, 2016. 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).
Photovoltaic Systems	30% of cost, no limit	Use IRS Form 5695. Must be placed in service before December 31, 2016.

 

Notes:

For solar water heating systems, 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.

Photovoltaic systems must provide electricity for the residence, and must meet applicable fire and electrical code requirement.