Yes, the
residential energy efficient property credit equals 30% of what you spend on
qualifying property such as solar electric systems, solar hot water heaters,
geothermal heat pumps, wind turbines, and fuel cell property.
- Generally,
labor costs are included when
calculating this credit.
- Not all
energy-efficient improvements qualify for these tax credits. For that
reason, you should check the
manufacturer's tax credit certification statement before
purchasing or installing any of these improvements. The certification
statement can usually be found on the manufacturer's website or with the
product packaging.
- The IRS
cautions that the manufacturer's
certification is different from the Department of Energy's Energy Star
label, and not all Energy Star labeled products qualify
for the tax credits.
- Keep in
mind, these are not refundable credits, which means you can take the credit up to the tax owed. There
is no refund of any credit amount left over.
- Further information on this credit can be obtained in IRS Form 5695, Residential
Energy Credits.
If you are eligible for
the Residential Energy Efficient Property Credit, you may enter it here:
- Click the Federal Taxes tab
(or Personal if
using Home & Business)
- Then, Deductions & Credits
- In the
"Your Home" section, next to "Home Energy Credits",
click Start or Revisit/Update
Or click Show more to expand menu options
- Answer Yes to "Did you make energy-saving improvements
in 2015 or have a carryforward from 2014?" then follow
the prompts from there.
