Start Taking Advantage of Government Tax Credits for Home Solar Energy Systems
Want to invest in your home, save money on energy bills, and receive a tax credit from the government all at once? We’ve got one word for you: solar.
As part of the Emergency Economic Stabilization Act of 2008, the government is providing a number of tax credits to homeowners as an incentive to make their home more energy efficient. These residential tax credits are for installations such as new windows, doors, roofs and insulation. Installing solar energy systems is another option on the list, and one which provides a number of benefits.
To qualify for the government tax credit, you must install one of two solar energy systems: a solar water heating system, or a photovoltaic system. By filling out the correct IRS forms for tax credits, the government will repay you up to 30% of the cost of the system, for up to $2,000. While initially these tax credits were to expire at the end of 2008, this most recent bill has extended them to the end of 2016.
Learn Abour Your Choices in Solar Energy
A solar water heating system incorporates solar panels to collect energy from the sun to heat water used in your home for showers, washing dishes, etc. Because of the variety of different systems available, you will need to meet with a local contractor to decide which system will work best for your home and climate. You can also learn more about your system options through the U.S. Department of Energy.
To ensure that your final design will meet federal requirements, the government sponsored Energy Star website provides the following guidelines to homeowners who want to ensure eligibility for tax credits on 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.
• 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, the second of the solar options with tax credits available for homeowners, consist of a series of solar cells which, when connected to create a system of panels, can efficiently absorb available sunlight to convert into usable energy. This energy can be used in addition to your normal energy supplies, or to power all your home’s energy needs. Just as with the solar water heating system, there are a number of options available, and you will need to discuss your choices with a contractor.
Want a tax credit, but don’t think a home solar system is right for you? The government is offering tax credits for a number of other projects. Check out the other options for home improvements that qualify for government reimbursement.
For more information on homeowner tax credits for home improvements visit these websites:
Energy Star
US Department of Energy: Energy Efficiency and Renewable Energy
Database of State Incentives for Renewable Energy
Green Building and Home Remodeling Resources
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