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Is there a tax credit for solar water heaters? Follow

Yes, Solar Water Heaters can qualify for a tax credit.

How much:

30% of the cost (including installation costs), with no upper limit. (Credit decreases to 26% for tax year 2020; drops to 22% for tax year 2021)

Timing:

Tax credit in effect in through 2021. Must be installed in a home you own and use as a residence (no rentals, but second homes qualify) between January 1, 2006 and December 31, 2021.

Details:

Existing homes and new construction qualify

At least half of the energy generated by the solar water heater ("qualifying property") must come from the sun.

Homeowners may only claim spending on the solar water heating system property, not the entire water heating system of the household.

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

The water must be used in the dwelling.

The credit is not available for expenses for swimming pools or hot tubs.

Find qualified models:

All ENERGY STAR certified solar water heaters qualify for the tax credit.  You will need to filter by 'solar' once you open the water heaters product list. 

How to apply:

File Tax Form 5695 with your tax return. 

 

 

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