Tax Credits For Federal Solar Energy Investment
Federal Solar Energy Investment Tax Credits
The solar energy tax credit began in 1978 and allowed you to receive a 15 percent credit for solar energy purchases. It remained at the 15 percent credit until 1986 when it was reduced to 12 percent and was again reduced to 10 percent in 1988.
In 2005 the energy p
Research and Development Tax Credit
olicy act was put in to place and allowed for a 30 percent tax credit of up to $2,000.00. This act was set to expire as of December 31, 2008 but recently received an 8 year extension. The $2,000.00 cap will also be lifted on solar purchases after December 31, 2008. So it may be a good time to consider using solar energy in your home.
AMT & Solar Energy Credits
Effective December 31st, 2008 alternative minimum tax (AMT) filers will be able to also apply for the solar investment tax credit as well. This credit was not previously available to AMT filers.
Qualifying Solar Equipment
To qualify for the solar energy investment tax credit you must use solar energy to generate electricity, heat, cool, or to provide light inside of a structure. Solar pool heating equipment does not qualify for this credit.
Federal Historic Rehabilitation Tax Credit
The equipment must be installed and put to use in the year that you wish to take the credit for the purchase. The government uses the term “placed in service” which means that it must be operated during the year you are going to take the credit. If you received any type of subsidized funding for your solar equipment purchase than your credit available may be reduced. All solar equipment must meet current quality standards at the time the equipment is installed.
Illinois State Income Tax Form
For more free information on the federal solar energy credit please visit TurboTax Online. TurboTax Online offers the residential energy credit form needed to file for this credit as well as free information on many other deductions that may be available to you.
