Residential "Energy  Efficient Property"  Tax  Credits

        The Federal Government offers a 30% tax credit for investment in renewable energy.  IRS Form 5695 is the method for claiming  your credit.

      You were limited  to $2,000 credit for solar electric property costs. If your expenses were greater that $6,666.67 carryforward options are in place.

      You were limited to $4,000 credit for wind energy property costs. If your expenses were greater than $13,333.33 and your kilowatt capacity was 4 kw or greater carryforward options are in place. With the wind calculations your tax credit depends on both the cost calculation and kilowatt capacity.

    Wind tax credit of 30% of expenses or kilowatt capacity x $1000 which ever is less.

      Solar water heating, fuel cells, and geothermal heat pumps also qualify for the 30% tax credits. The restrictions and similar to solar pv electric and wind mill expense calculations.

What’s New for 2009 (From IRS Form 5695)

Nonbusiness energy property credit available.

nonbusiness energy property credit will be available for property placed in service in 2009. The credit is available for items such as high-efficiency heating and cooling systems, water heaters, windows, doors, and insulation. The amount of the credit will be limited by the amount of any nonbusiness energy property credit you took in 2006 or 2007.

Qualified solar electric property.

    There is no limit on the amount of qualified solar electric property costs when figuring the residential energy efficient property credit.

     I live in the Blue Ridge Mountains of southwestern Virginia. Geothermal is out of the question. Solar water heating is questionable because of freezing temperature during 5 months of the year. Perhaps fuel cells are something I'll look into in the future.

     If you design your home renewable energy system so you can increase its capacity on a year by year basis, you make it more affordable and better able to pay for part of it with last years tax refund.

     You can tell that these credits were implemented by lawyers and politicians instead of engineers and manufacturers. Be aware that these credits are conditional on the whims of the congress and may change at any time without notice and fanfare.

     Congress may even change the tax laws without anyone in congress reading the bill before they vote on it. So stay alert if you're thinking of building a home renewable energy system. I'll try to keep you up to date on this kind of tax credit.

Home  |  Solar PanelsBatteries  |  Chargers  |  Inverters  |  Windmills
System Design Tax Incentives | System Monitor & Control
Legal Information

Karl Kinkel - President
Karl Kinkel, President & Founder
Longsgap Services LLC
5262 Elk Creek Pkwy
Independence, VA  24348
(276) 773-3730
Click Here to Email Us