Did you recently purchase solar for your home? You may have
federal tax credits available to you! If you haven't yet made your purchase, you
can still qualify for a 30 percent credit if you act before the end of 2016.
The residential energy credit for installing solar water
heating and electric equipment is worth 30 percent of the cost of the system
placed in service through Dec. 31, 2016. There is no limit on the cost, or on
your income, to qualify for this credit, taken in Part II of IRS Form 5695.
According to the U.S.
Department of Energy, to qualify for the 30 percent credit on either a
solar water heating or a photovoltaic (solar electric) installation, the system
must be placed in service by Dec. 31, 2016, must be available on your principal
or second home (within the United States) and can be installed on either new or
existing homes.
To qualify for credit on a solar water heating installation,
at least half of the energy generated by the system must come from the sun and
the system must be certified by the Solar
Rating and Certification Corporation (SRCC). The water must be used in the
dwelling and the credit is not available for expenses for swimming pools or hot
tubs. The tax credit is only available for the solar water heating system, not
the entire water heating system of the household.
To qualify for a credit on a photovoltaic (solar electric)
installation, the system must provide electricity for the residence and must
meet applicable fire and electric code requirements.
Generally, you can include labor costs when figuring the
credit and you can carry forward any unused portion of this credit. These are
federal credits and they can be combined with other state, local and utility
incentives. To determine if you are eligible for other incentives, visit the Database of State Incentives for Renewables and
Efficiency.
As you prepare to file for your tax credit, save or make
copies of your receipts and be sure you have the Manufacturer Certification
Statement for your records.
UMA Solar offers solar hot water and solar electric systems
that are eligible for these federal tax credits through its nationwide network
of dealers. For more information about our solar hot water systems visit www.solene.com and for details on our solar electric
systems, visit www.heliolectric.com.
