Solar Water Heaters eligible for 30% Tax Credit | 05/11/11

Energy Efficient Tax Credits
Consumers who install solar energy systems (including solar water heating) can receive a 30% tax credit

Tax credits for being energy efficient

You may be eligible to claim a tax credit for adding an energy-efficient item to your home. Better yet, this credit could apply to repair projects that would normally be considered ineligible, such as replacing doors or windows with qualifying energy efficient products.  There are two categories for this tax credit:

   1. The installation of qualifying windows, ventilation, doors, heating, roofing (for 2009 and 2010 only), insulation, air conditioning, non-solar water heaters and biomass stoves. These items are eligible for a lifetime tax credit limit of $500 (a $200 limit on windows). The credit will be the smaller of 10% of the cost or the $500 limit.
   2. The installation of qualifying solar panels and solar water heaters, wind turbines, fuel cells or geothermal pumps. These items are eligible for a tax credit that is 30 percent of the cost, but with no limit on the amount you can claim.

Consumers who install solar energy systems (including solar water heating and solar electric systems), small wind systems, geothermal heat pumps, and residential fuel cell and microturbine systems can receive a 30% tax credit for systems placed in service before December 31, 2016; the previous tax credit cap no longer applies.



H&R Block

Check out the Department of Energy’s consumer energy tax incentives webpage for some helpful information.
Check out the Energy Star website for the definitions and qualifications for a wide range of energy-efficient products.

Lic. # M1527    Texas State Board of Plumbing Examiners PO Box 4200 Austin, TX 78765