Residential Renewal Energy – Federal Tax Credit
If you are considering making a solar, wind or other similar renewable energy improvement to your home, don’t forget to figure in the 30% Federal tax credit into your calculation of the overall net cost of the project. The tax code still allows for this significant tax credit for the installation of solar electric, solar water heating, small wind, geothermal heat pumps and fuel cell improvements to your primary residence, at least through 12/31/16. This Federal tax credit applies to the overall installed cost of the equipment, including the cost for new wiring, piping, etc., in the year the improvement is made. Also, if you aren’t eligible for the full credit in the tax year that the improvement is made the credit balance can be carried ahead and applied to a subsequent year’s tax return filing. There are some additional requirements that must be met in order to qualify for the credit, so please refer to this Department of Energy newsletter for these additional specifications. Please contact us, if we can assist you in determining whether making a renewable energy upgrade to your home would make sense for you!
Posted June 26, 2015/wittenbergcpa.com