Green Tax Breaks Available Thu 2016

If you purchase an energy-efficient product or renewable energy system for your home, you may be eligible for a federal tax credit.

Below you will find an overview of the federal tax credits for energy efficiency that are still available.

Some energy efficiency tax credits were also available in 2009 and 2010. These can still be claimed on your 2010 taxes. Learn more about the tax credits that expired at the end of 2010.

NOTE: The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 included changes to home energy efficiency tax credits, beginning after December 31, 2010. This page will be updated with more information; please check back.

How to Claim Your Tax Credit

  • Note: Tax forms for the 2010 tax year may not yet be available. Visit the IRS Web site to obtain the latest forms.
  • Claim improvements made in 2010 on your 2010 taxes, filed by April 15, 2011.
  • Use the 2010 version of the following forms:
    • For renewable and efficiency credits: IRS Form 5695.
    • For alternative motor vehicle credits: IRS Form 8910. Also download instructions for form 8910.
    • For qualified plug-in electric drive motor vehicle credits: IRS Form 8936
  • Save your receipts and the Manufacturer Certification Statement for your records.
  • For 2009 taxes, visit the IRS Web site to obtain the 2009 version of these forms.

Products Eligible for Tax Credits Through 2016

Tax credits for these products are available at 30% of the cost, with no upper limit, through 2016 (Select “See Details” for more information on each product, or see the printable version).

Geothermal Heat Pump

Photo of two geothermal heat pump—two tall rectangular boxes with pipes and tubes coming out the top of each.

Credit: Bruce Green

Credit: 30% of cost, with no upper limit

When and Where:

  • Must be “placed in service” by Dec. 31, 2016
  • Available on principal home or second home.
  • New and existing homes

Solar Energy Systems

Photo of solar panels on the roof of a home.

Credit: Cheryl Unger

Credit: 30% of cost, with no upper limit

When and Where:

  • Must be “placed in service” by Dec. 31, 2016
  • Available on principal home or second home.
  • New and existing homes
  • See details

    Product Requirements More Information
    Solar Water Heating Property At least half of the energy generated by the “qualifying property” must come from the sun.

    The system must be certified by the Solar Rating and Certification Corporation (SRCC).

    Credit includes installation costs.

    Learn more about solar water heaters.

    All ENERGY STAR solar water heaters qualify.

    The water must be used in the dwelling. The credit is not available for expenses for swimming pools or hot tubs.

    Tax credits are only available for the solar water heating system property, not the entire water heating system of the household.

    Photovoltaic Systems (Solar Electric Property) Photovoltaic systems must provide electricity for the residence and must meet applicable fire and electrical code requirement. Learn more about:

Wind Energy Systems

Photo of a home with a small wind turbine behind the garage.

Credit: Bergey WindPower

Credit: 30% of cost, with no upper limit

When and Where:

  • Must be “placed in service” by Dec. 31, 2016
  • Available on principal home or second home.
  • New and existing homes
  • See details

    Product Requirements More Information
    Residential Small Wind Turbines Nameplate capacity of not more than 100 kilowatts.

    Credit includes installation costs.

    Learn more about:

Fuel Cells

Photo of a man examining one of three fuel cells. The fuel cells are tall boxes, roughly six feet tall and three feet wide, with a round panel on the front.

Credit: Capstone Turbine Corporation

Credit: 30% of cost, up to $500 per .5 kW of power capacity

When and Where:

  • Must be “placed in service” by Dec. 31, 2016
  • Primary residence
  • New and existing homes
  • See details

    Product Requirements More Information
    Residential Fuel Cell Systems Efficiency of at least 30% and must have a capacity of at least 0.5 kW.

    Credit includes installation costs.

Vehicle Tax Credits

Tax credits are also available for some vehicles (Select “See Details” for more information on each product, or see the printable version).

Vehicles

Photo of a hybrid electric vehicle.

Credit: ©iStockphoto.com

Credit: Varies, see below.

When:

  • See below; credits phased-out after certain number of vehicles are sold.
  • See details

    Product Requirements More Information
    Hybrids, battery-powered, plug-in electric, advanced lean burn, fuel cell, or alternative fuel vehicles Credit is based on a formula determined by vehicle weight, technology, and fuel economy compared to base year models. There is a 60,000 vehicle limit per manufacturer before a phase-out period begins. See Fueleconomy.gov to find out which vehicles are still eligible.

    Use IRS Form 8910 (PDF 86 KBPDF) for vehicles purchased for personal use. Use IRS Form 3800 (PDF 144 KBPDF) for vehicles purchased for business. The 2009 forms will be available late 2009 or early 2010.

    Also see credits for alternative fuel vehicle refueling property.

    Plug-in Electric Vehicles Credit: $2,500-$7,500, based on capacity of the battery system. The first 200,000 vehicles sold get the full tax credit before the credit begins phasing out. Use IRS Form 8936 (PDF 78 KBPDF).

    See the IRS information on the Plug-in Electric Vehicle Credit.

You May Be Eligible for Additional Incentives

The tax credits listed here are federal tax credits.

These can be combined with other state, local, and utility incentives.

Related Links

Note: This summary is for informational purposes only and should not be considered official tax information. Please see the IRS web site for official tax guidance.

 

 

 

 

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