Federal Tax Credits

US Department of Energy, The Energy Policy Act of 2005

Federal Tax Credits for Solar Domestic Hot Water Heaters

The Energy Policy Act of 2005 (EPACT) offers consumers and businesses tax credits for qualified solar water heating and photovoltaic systems.  The credits are available for systems “placed in service” from January 1, 2006 through December 31, 2020. The tax credit is for 30% of the cost of the system, up to $2,000. After December 31, 2008, this $2,000 cap will be removed for photovoltaic systems (but not solar water heaters). This credit is completely separate from the $500 home improvement credit.

Home Energy Efficiency Improvement Tax Credits

Consumers who purchase and install specific products, such as energy-efficient windows, insulation, doors, roofs, and heating and cooling equipment in the home can receive a tax credit of up to $500 for improvements “placed in service” starting January 1, 2009 through December 31, 2009. The ENERGY STAR® website has a complete summary of energy efficiency tax credits available to consumers.

Database of State Incentives for Renewables & Efficiency is a  comprehensive source of information on state, local, utility, and federal incentives that promote renewable energy and energy efficiency.

Learn more on Federal tax credits and access tax forms….

References & Credits:
U.S. Department of Energy; Consumer Energy Tax Incentives
Database of State Incentives for Renewables & Efficiency