Solar Energy Tax Credit

Incentives for making your home energy efficient.

The residential energy efficient property credit allows for a credit equal to 30 percent of the cost of qualified property. Qualifying properties are solar electric property, solar water heaters, geothermal heat pumps and small wind turbines.

The credit for solar electric property and solar water heating property, however, is available for property placed in service through Dec. 31, 2021, based on an applicable percentage. The applicable percentages are:

(1) In the case of property placed in service after Dec. 31, 2016, and before Jan. 1, 2020, 30 percent.

(2) In the case of property placed in service after Dec. 31, 2019, and before Jan. 1, 2021, 26 percent.

(3) In the case of property placed in service after Dec. 31, 2020, and before Jan. 1, 2022, 22 percent.

solar energy panels and woman