Southeast Energy Resources, LLC

               

 

            164 Market Street, Suite 116 Charleston, SC 29401

 

                  

 

                 www.se-energyresources.com

Federal Residential Renewable Energy Tax Credit

Source: http://www.dsireusa.org/


Last DSIRE Review: 02/03/2011

Program Overview:

State:

Federal

Incentive Type:

Personal Tax Credit

Eligible Renewable/Other Technologies:

Solar Water Heat, Photovoltaics, Wind, Fuel Cells, Geothermal Heat Pumps, Other Solar Electric Technologies

Applicable Sectors:

Residential

Amount:

30%

Maximum Incentive:

Solar-electric systems placed in service before 1/1/2009: $2,000
Solar-electric systems placed in service after 12/31/2008: no maximum
Solar water heaters placed in service before 1/1/2009: $2,000
Solar water heaters placed in service after 12/31/2008: no maximum
Wind turbines placed in service in 2008: $4,000
Wind turbines placed in service after 12/31/2008: no maximum
Geothermal heat pumps placed in service in 2008: $2,000
Geothermal heat pumps placed in service after 12/31/2008: no maximum
Fuel cells: $500 per 0.5 kW

Eligible System Size:

Fuel cells: 0.5 kW minimum

Equipment Requirements:

Solar water heating property must be certified by SRCC or a comparable entity endorsed by the state where the system is installed. At least half the energy used to heat the dwelling's water must be from solar. Geothermal heat pumps must meet federal Energy Star criteria. Fuel cells must have electricity-only generation efficiency greater than 30%.

Carryover Provisions:

Excess credit generally may be carried forward to next tax year

Start Date:

1/1/2006

Expiration Date:

12/31/2016

Web Site:

http://www.energystar.gov/index.cfm?c=tax_credits.tx_index

Authority 1:
Date Enacted:
Date Effective:
Expiration Date:

26 USC § 25D
8/8/2005 (subsequently amended)
1/1/2006
12/31/2016

Authority 2:

IRS Form 5695 & Instructions: Residential Energy Credits

Note: The American Recovery and Reinvestment Act of 2009 does not allow taxpayers eligible for the residential renewable energy tax credit to receive a U.S. Treasury Department grant instead of taking this credit.

Established by the Energy Policy Act of 2005, the federal tax credit for residential energy property initially applied to solar-electric systems, solar water heating systems and fuel cells.
The Energy Improvement and Extension Act of 2008 (H.R. 1424) extended the tax credit to small wind-energy systems and geothermal heat pumps, effective January 1, 2008. Other key revisions included an eight-year extension of the credit to December 31, 2016; the ability to take the credit against the alternative minimum tax; and the removal of the $2,000 credit limit for solar-electric systems beginning in 2009. The credit was further enhanced in February 2009 by The American Recovery and Reinvestment Act of 2009 (H.R. 1: Div. B, Sec. 1122, p. 46), which removed the maximum credit amount for all eligible technologies (except fuel cells) placed in service after 2008.

A taxpayer may claim a credit of 30% of qualified expenditures for a system that serves a dwelling unit located in the United States and used as a residence by the taxpayer. Expenditures with respect to the equipment are treated as made when the installation is completed. If the installation is at a new home, the "placed in service" date is the date of occupancy by the homeowner. Expenditures include labor costs for on-site preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. The excess credit may be carried forward until 2016, but it is unclear whether the unused tax credit can be carried forward after then. The maximum allowable credit, equipment requirements and other details vary by technology, as outlined below.


Solar-electric property

·         There is no maximum credit for systems placed in service after 2008. The maximum credit is $2,000 for systems placed in service before January 1, 2009.

·         Systems must be placed in service on or after January 1, 2006, and on or before December 31, 2016.

·         The home served by the system does not have to be the taxpayer’s principal residence.


Solar water-heating property

·         There is no maximum credit for systems placed in service after 2008. The maximum credit is $2,000 for systems placed in service before January 1, 2009.

·         Systems must be placed in service on or after January 1, 2006, and on or before December 31, 2016.

·         Equipment must be certified for performance by the Solar Rating Certification Corporation (SRCC) or a comparable entity endorsed by the government of the state in which the property is installed.

·         At least half the energy used to heat the dwelling's water must be from solar in order for the solar water-heating property expenditures to be eligible.

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

·         The home served by the system does not have to be the taxpayer’s principal residence.

Geothermal heat pumps

·         There is no maximum credit for systems placed in service after 2008. The maximum credit is $2,000 for systems placed in service in 2008.

·         Systems must be placed in service on or after January 1, 2008, and on or before December 31, 2016.

·         The geothermal heat pump must meet federal Energy Star criteria.

·         The home served by the system does not have to be the taxpayer’s principal residence.


Significantly, The American Recovery and Reinvestment Act of 2009 repealed a previous limitation on the use of the credit for eligible projects also supported by "subsidized energy financing." For projects placed in service after December 31, 2008, this limitation no longer applies.

SC Solar Energy and Small Hydropower Tax Credit (Personal)

Source: http://www.dsireusa.org/


Last DSIRE Review: 12/15/2010

Program Overview:

State:

South Carolina

Incentive Type:

Personal Tax Credit

Eligible Renewable/Other Technologies:

Solar Water Heat, Solar Space Heat, Photovoltaics, Solar Cooling, Daylighting, Small Hydroelectric

Applicable Sectors:

Commercial, Residential

Amount:

25% of eligible costs for 2010; was 30% in 2009

Maximum Incentive:

In any given tax year, $3,500, or 50% of taxpayer's tax liability for that taxable year, whichever is less

Equipment Requirements:

Solar-thermal systems must be certified by SRCC or a comparable entity endorsed by the S.C. Energy Office

Carryover Provisions:

Excess credit may be carried forward up to 10 years

Start Date:

1/1/2006

Web Site:

http://www.energy.sc.gov/index.aspx?m=1&t=5&h=19

In South Carolina, taxpayers may claim a credit of 25% of the costs of purchasing and installing a solar energy system or small hydropower system for heating water, space heating, air cooling, energy-efficient daylighting, heat reclamation, energy-efficient demand response, or the generation of electricity in a building owned by the taxpayer.

The maximum credit a taxpayer may take in any one tax year is $3,500 for each facility or 50% of the taxpayer's tax liability for that taxable year, whichever is less. Unused credit, or credit that exceeds the annual cap, may be carried forward for 10 years.

The term "system" includes "all controls, tanks, pumps, heat exchangers, and other equipment used directly and exclusively for the solar-energy system." The term "system" does not include any land or structural elements of the building, such as walls and roofs, or other equipment ordinarily contained in the structure.

Solar-thermal systems must be certified by the Solar Rating and Certification Corporation (SRCC) or a comparable entity endorsed by the South Carolina Energy Office to qualify for the credit, unless the system was installed before June 19, 2007.