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Category: Credits

What Improvements and Property Qualify for the Residential Energy Credit?

The Residential Energy Credit has been extended for tax year 2017 but is limited.

 

Nonbusiness Energy Property Credit at the time the instructions went to print, the nonbusiness energy property credit (Part II of form 5695) has expired. You can't claim the nonbusiness energy property credit for property placed in service after 2016. Part II is now shown as “Reserved for Future Use” in case Congress extends the credit for 2017. To find out if legislation extended the credit so you can claim it on your 2017 return, go to IRS.gov/ Extenders.

 

Residential Energy Efficient Property Credit

If you made energy saving improvements to more than one home that you used as a residence during 2017, enter the total of those costs on the applicable line(s) of one Form 5695.

You may be able to take a credit of 30% of your costs of qualified solar electric property and solar water heating property. Include any labor costs properly allocable to the onsite preparation, assembly, or original installation of the residential energy efficient property and for piping or wiring to interconnect such property to the home.

Qualified solar electric property costs. Qualified solar electric property costs are costs for property that uses solar energy to generate electricity for use in your home located in the United States. No costs relating to a solar panel or other property installed as a roof (or portion thereof) will fail to qualify solely because the property constitutes a structural component of the structure on which it is installed. The home doesn't have to be your main home.


Qualified solar water heating property costs
. Qualified solar water heating property costs are costs for property to heat water for use in your home located in the United States if at least half of the energy used by the solar water heating property for such purpose is derived from the sun. No costs relating to a solar panel or other property installed as a roof (or portion thereof) will fail to qualify solely because the property constitutes a structural component of the structure on which it is installed. To qualify for the credit, the property must be certified for performance by the nonprofit Solar Rating Certification Corporation or a comparable entity endorsed by the government of the state in which the property is installed. The home doesn't have to be your main home.

 

 

  * TaxSlayer will calculate the allowed credit based off of total expenses entered.

 

For additional information, please refer to Form 5695 instructions.