Qualified fuel cell property costs are costs for qualified fuel cell property installed on or in connection with your main home located in the United States. Qualified fuel cell property is an integrated system comprised of a fuel cell stack assembly and associated balance of plant components that converts a fuel into electricity using electrochemical means. To qualify for the credit, the fuel cell property must have a nameplate capacity of at least one-half kilowatt of electricity using an electrochemical process and an electricity-only generation efficiency greater than 30%.

Danny1219Neida919

Level 2

I purchased solar panels for my residence in 2019. How do I know if I qualify for a fuel cell property cost and I do where can I find the cost?

ReneeM7122

Level 9

To figure the credit, the maximum qualifying costs that can be taken into account by all occupants for qualified fuel cell property costs is $1,667 for each one-half kilowatt of capacity of the property. The amount allocable to you for qualified fuel cell property costs is the lesser of:

The amount you paid, or
The maximum qualifying cost of the property multiplied by a fraction. The numerator is the amount you paid and the denominator is the total amount paid by you and all other occupants

What is qualified fuel cell property costs?

Qualified fuel cell property costs.

To qualify for the credit, the fuel cell property must have a nameplate capacity of at least one-half kilowatt of electricity using an electrochemical process and an electricity-only generation efficiency greater than 30%.

Use Form 5695 to claim the Residential Energy Credit for solar panels.

Access the form from the Credits and Deductions section in Turbo Tax. Type Form 5695 in the search box, and then click Jump to Form 5695.

Here is a TurboTax article about energy credits.

Here is a link to more information on the IRS website.

@Danny1219Neida919

LRada

Level 2

Is this qualified fuel property something separate/additional to the solar panels? Or by installing solar panels it is assumed that the qualified fuel cell property comes with it? Is this some sort of equipment? This is very confusing and not well defined by the IRS.org documentation, neither by TurboTax. Thank you!

DoninGA

Level 15

@LRada Qualified Fuel Cell Property is not associated in any way, shape or form to Qualified solar electric property.

If Qualified Fuel Cell Property is also installed on a residence along with Qualified solar electric property, it is a separate credit.

Qualified fuel cell property is an integrated system comprised of a fuel cell stack assembly and associated balance of plant components that converts a fuel into electricity using electrochemical means. To qualify for the credit, the fuel cell property must have a nameplate capacity of at least one-half kilowatt of electricity using an electrochemical process and an electricity-only generation efficiency greater than 30%.

The credit amount for costs paid for qualified fuel cell property is limited to $500 for each one-half kilowatt of capacity of the property.