Federal

Federal Investment Tax Credit (ITC)

Residential

Qualifying Systems:  Solar PV, Solar Hot Water, Geothermal, and *Battery Energy Storage

Maximum Credit:  None

Where/ who/ when:  This credit is taken on your personal income tax return.  You must have taxable income to take the credit.

Expiration Date:  12/31/2021 – please see phase out schedule below:

                30% for systems placed in service by 12/31/2019

                26% for systems placed in service after 12/31/2019 and before 01/01/2021

                22% for systems placed in service after 12/31/2020 and before 01/01/2022

The home served does not need to be the tax payers primary home.

Specific to Solar Hot Water:

The tax credit does not apply for solar water heating for swimming pools or hot tubs.

At least half of the energy used to heat the water must be from solar.

*Battery Energy Storage

The federal tax code does not explicitly reference energy storage, so stand-alone energy storage systems do not qualify for the tax credit. However, the IRS issued Private Letter Rulings in 2013 and 2018, which address energy storage paired with PV systems. In both cases, the IRS ruled that the energy storage equipment when paired with PV met the statutory definition of a “qualified solar electric property expenditure,” as was eligible for the tax credit. It is important to note that Private Letter Rulings only apply to the taxpayer who requested it, and do not establish precedent. Any taxpayer considering the purchase of an energy storage system should consult their accountant or other tax professional before claiming a tax credit.  

Source:

http://programs.dsireusa.org/system/program/detail/1235

Commercial

Qualifying Systems:  Solar PV, Solar Hot Water, Geothermal, and *Battery Energy Storage

Maximum Credit:  None

Where/ who/ when:  This credit is taken on your business tax return.  You must have          taxable income to take the credit.

Expiration Date:  None at this time – please see phase out schedule below:

                30% for systems placed in service by 12/31/2019

                26% for systems placed in service after 12/31/2019 and before 01/01/2021

                22% for systems placed in service after 12/31/2020 and before 01/01/2022

                10% for systems placed in service after 12/31/2021

Specific to Solar Hot Water:

The tax credit does not apply for solar water heating for swimming pools or hot tubs.

At least half of the energy used to heat the water must be from solar.

*Battery Energy Storage

The federal tax code does not explicitly reference energy storage, so stand-alone energy storage systems do not qualify for the tax credit. However, the IRS issued Private Letter Rulings in 2013 and 2018, which address energy storage paired with PV systems. In both cases, the IRS ruled that the energy storage equipment when paired with PV met the statutory definition of a “qualified solar electric property expenditure,” as was eligible for the tax credit. It is important to note that Private Letter Rulings only apply to the taxpayer who requested it, and do not establish precedent. Any taxpayer considering the purchase of an energy storage system should consult their accountant or other tax professional before claiming a tax credit.  

Source:

http://programs.dsireusa.org/system/program/detail/1235

USDA RURAL DEVELOPMENT PROGRAM (REAP)

The Rural Energy for America Program (REAP) provides assistance to agricultural producers and rural small businesses to complete a variety of projects.  Offering both loan guarantees and grants, the REAP program helps eligible applicants install renewable energy systems such as solar panels, anaerobic digesters, make energy efficiency improvements such as installing irrigation pumps or replacing ventilation systems and conduct energy audits and feasibility studies.

Source:

https://www.rd.usda.gov/programs-services/rural-energy-america-program-renewable-energy-systems-energy-efficiency

 
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