Residential Energy Credit

March 13, 2012

It’s like a 30% discount on the price of energy efficient solutions for your home.

A tax credit offering 30 percent of the cost of qualified alternative energy equipment for a residence is being offered through 2016.

Qualifying equipment includes alternatives like:

  • energy efficient solar hot water heaters
  • solar electricity generators
  • geothermal heat pumps
  • wind turbines

Generally, you may include labor costs when figuring the credit and you can carry forward any unused portions of the credit.

Not all energy-efficient improvements qualify so be sure you have the manufacturer’s tax credit certification statement.

Reminder:  tax credits are not deductions.  Rather, they help reduce the total amount of tax you owe dollar-for-dollar.

For more information and forms explaining Residential Energy Credits go to: Residential Energy Tax Credit Information