Tax Credits For Solar Water Heating

Federal solar hot water incentives.

Tax credits for solar water heating.

Renewable energy tax credits for fuel cells small wind turbines and geothermal heat pumps now feature a gradual step down in the credit value the same as those for solar energy systems. Yes solar water heaters can qualify for a tax credit. 30 of the cost including installation costs with no upper limit. The state of hawaii offers a personal tax credit of 35 of the cost of the system or 2 250 whichever is less as well as a one time 750 rebate for existing homes not available for homes built after 2009.

Water heaters using oil gas or propane are all eligible as long as they have what s known as an energy factor of 0 82 or up. Federal tax credits include 30 of the cost of solar hot water systems with no cap same federal tax credit for pv systems applies. They must also come with a thermal efficiency of 90 or up. Drops to 22 for tax year 2021 tax credit in effect in through 2021.

If you happen to have an electric heat pump heater then it must have an energy factor of at least 2 0. Credit decreases to 26 for tax year 2020. Use up to 30 less energy in your home by outfitting it with energy star certified products available across more than 75 categories. This credit is worth a flat.

Yes the residential energy efficient property credit allows for a credit equal to the applicable percent of the cost of qualified property. The credit is available through the end of 2019. State solar hot water incentives. Arizona and massachusetts for instance currently give state income tax credits worth up to 1 000 toward solar installations.

Qualifying properties are solar electric property solar water heaters geothermal heat pumps small wind turbines and fuel cell property. After that the percentage steps down each year and then stops at the end of 2021.