Federal Income Tax Credit for 2019 - Solar Electric Property
09/01/2019
Tax Planning for 2019
Below is an excerpt from the Internal Revenue Service (see link below for the full article) regarding the income tax credit with alternative energy equipment. Note qualified solar electric property placed in service on or before December 31, 2019 may qualify for a 30% income tax credit, but this same property placed in service after December 31, 2019 may qualify for a smaller credit.
Are there incentives for making your home energy efficient by installing alternative energy equipment?
Yes, the residential energy efficient property credit allows for a credit equal to 30 percent of the cost of qualified property. Qualifying properties are solar electric property, solar water heaters, geothermal heat pumps, small wind turbines and fuel cell property. Only fuel cell property is subject to a limitation, which is $500 with respect to each half kilowatt of capacity of the qualified fuel cell property. Generally, this credit for alternative energy equipment terminates for property placed in service after Dec. 31, 2016. The credit for solar electric property and solar water heating property, however, is available for property placed in service through Dec. 31, 2021, based on an applicable percentage. The applicable percentages are:
- In the case of property placed in service after Dec. 31, 2016, and before Jan. 1, 2020, 30 percent.
- In the case of property placed in service after Dec. 31, 2019, and before Jan. 1, 2021, 26 percent.
- In the case of property placed in service after Dec. 31, 2020, and before Jan. 1, 2022, 22 percent