May 26, 2015

Residential Renewable Energy Tax Credit

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Eligibility: 
Residential
 
Savings Category:
Solar Water Heat, Photovoltaics, Wind, Fuel Cells, Geothermal Heat Pumps, Other Solar-Electric Technologies, Fuel Cells using Renewable Fuels
 
Maximum Rebate: 
Solar-electric systems placed in service after 2008: no maximumSolar water heaters placed in service after 2008: no maximum
Wind turbines placed in service after 2008: no maximum
Geothermal heat pumps placed in service after 2008: no maximum
 

Fuel cells: 
$500 per 0.5 kW

PROGRAM INFO
 
Program Type:
Personal Tax Credit
 
Rebate Amount:
30%
 
Established by The Energy Policy Act of 2005, the federal tax credit for residential energy property initially applied to solar-electric systems, solar water heating systems and fuel cells. The Energy Improvement and Extension Act of 2008 extended the tax credit to small wind-energy systems and geothermal heat pumps, effective January 1, 2008. Other key revisions included an eight-year extension of the credit to December 31, 2016; the ability to take the credit against the alternative minimum tax; and the removal of the $2,000 credit limit for solar-electric systems beginning in 2009. The credit was further enhanced in February 2009 by The American Recovery and Reinvestment Act of 2009, which removed the maximum credit amount for all eligible technologies (except fuel cells) placed in service after 2008.
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. Expenditures include labor costs for on-site preparation, assembly or original system installation, and for piping or wiring to interconnect 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. The excess credit may be carried forward until 2016, but it is unclear whether the unused tax credit can be carried forward after then. The maximum allowable credit, equipment requirements and other details vary by technology, as outlined below.

Solar-electric property
  • 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 property
  • 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 water-heating property for swimming pools or hot tubs.
  • The home served by the system does not have to be the taxpayer’s principal residence.
Fuel cell property
  • The maximum credit is $500 per half kilowatt (kW).
  • Systems must be placed in service on or after January 1, 2006, and on or before December 31, 2016.
  • The fuel cell must have a nameplate capacity of at least 0.5 kW of electricity using an electrochemical process and an electricity-only generation efficiency greater than 30%.
  • In case of joint occupancy, the maximum qualifying costs that can be taken into account by all occupants for figuring the credit is $1,667 per 0.5 kW. This does not apply to married individuals filing a joint return. The credit that may be claimed by each individual is proportional to the costs he or she paid.
  • The home served by the system must be the taxpayer’s principal residence.
Small wind-energy property
  • There is no maximum credit for systems placed in service after 2008.
  • Systems must be placed in service on or after January 1, 2008, and on or before December 31, 2016.
  • The home served by the system does not have to be the taxpayer’s principal residence.
Geothermal heat pumps
  • There is no maximum credit for systems placed in service after 2008.
  • Systems must be placed in service on or after January 1, 2008, and on or before December 31, 2016.
  • The geothermal heat pump must meet federal Energy Star criteria.
  • The home served by the system does not have to be the taxpayer’s principal residence.
Significantly, The American Recovery and Reinvestment Act of 2009 repealed a previous limitation on the use of the credit for eligible projects also supported by "subsidized energy financing." For projects placed in service after December 31, 2008, this limitation no longer applies.

Other Information 
 
Solar water heating property must be certified by SRCC or a comparable entity endorsed by the state where 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 criteria. Fuel cells must have electricity-only generation efficiency greater than 30%.

Source
http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=US37F

February 25, 2015

Residential Energy Tax Credits for Solar

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General Information 

Residents can get a credit on their Oregon income taxes for adding
solar energy system(s) to their homes, helping to reduce imported fossil
fuels and preserve Oregon’s environment.

After the system is installed, residents can file a Residential Energy Tax
Credit (RETC) application. Each solar technology must be installed
according to minimum requirements. The Oregon Department of Energy (ODOE)
maintains a list of solar companies that understand these requirements.
 
Residential – Solar Electric (PV) Tax Credits
 
Solar electric systems, also called “PV” systems generate electricity directly
from the sun using photovoltaic modules. More information is available
on solar electric (PV) page.
  1. Tax credit is based on $1.90 per watt of installed capacity (DC) up to $6,000 per residence taken over four years ($1,500 per year) limited to 50 percent of the cost of the system.
  2. Must be verified by a tax credit technician. 
  3. Must be comprised of new UL listed equipment.
  4. Be a minimum of 200 watts.
Solar Domestic Water Heating Residential Tax Credits

Solar domestic water heating systems use roof-mounted solar collectors to
pre-heat incoming cold water so that on a sunny day, little or no backup water
heating is needed. More information is available on the solar water heating page.
  1. System must be verified by a tax credit technician.
  2. Tax credit is based on estimated energy savings for a typical four-person household.
  3. Tax credit amount is $0.60 per kWh saved up to $1,500.
  4. Credit is limited to 100 percent of the total system cost.
  5. Equipment must be new and either OG-300 certified or listed as a “Research and Development” system by ODOE.
  Residential – Solar Pool Heating Tax Credits

Solar Pool heating systems are very effective for increasing swimming pool
temperatures under warm sunny conditions. Most collector systems use unglazed
type collectors that are not effective under cloudy, rainy or cool conditions.
These systems can eliminate the need for backup heat during most of a typical
outdoor swimming season. Annual savings vary greatly, depending on the size
of the pool and the number of months used each year. Use of a pool
blanket is highly recommended with or without a solar pool heating system.
  1. Equipment must be new and collector must come with a 10-year warranty. 
  2. Collector area must be at least 40 percent of the pool surface area if there is a pool blanket. 
  3. Collector area must be at least 60 percent of the pool surface area without pool blanket. 
  4. Tax credit amount is $0.15 per kWh saved up to $1,500. 
  5. Credit is limited to 50 percent of the total system cost.
 
Residential – Passive Solar Space Heating Tax Credits
 
Passive solar space heating relies on the use of windows, a home’s design
and construction materials to collect and store heating energy.
  1. Systems must produce energy savings equal to or greater than 20 percent of the annual energy used for space heating in the dwelling. 
  2. New or retrofit homes are eligible. 
  3. Tax credit amount is $0.60 per kWh saved up to $1,500. 
  4. Energy savings are determined by ODOE. 
  5. Systems must meet minimum passive solar design criteria.
 
Residential – Active Solar Space Heating Tax Credits
Active solar space heating systems use solar collectors to heat water that is
used to heat the home. These systems are more complicated than any of the
other solar energy systems; should be designed and built by trained or
experienced professionals. A RETC is based on:
  1. Systems that produce energy savings equal to not less than 15 percent of the annual energy used for space heating in the dwelling 
  2. A tax credit amount is $0.60 per kWh saved up to $1,500. 
  3. Energy savings estimated by the solar professional and reviewed by ODOE. 
  4. Verification by a tax-credit technician.