This web site will provide information about the Energy Policy Act of 2005 (H.R.6). You can take a tax credit of up to $2000 on your solar heating installation. There is no longer a cap for photovoltaic installations! This is the first federal tax credit for solar in more than 20 years. This solar tax credit is for eqipment installed through 2016.
The Florida Energy Bill (CS/CS/CS/SB 888) allows florida residents to get an additional $500 rebate for installing a solar water heating system. This bill goes into effect July 01, 2006 and is funded through 2010.
(H.R.6) The Energy Policy Act of 2005
This is the first effort of the United States government to address U.S. energy policy since the Energy Policy Act of 1992. Among many other things, the 1724 page law provides new tax incentives for a number of solar and energy efficiency measures. Among them are:
Tax credits for residential solar photovoltaic and hot water heating systems.
Tax deductions for highly efficient commercial buildings.
Tax credits for highly-efficient new homes.
Tax credits for improvements to existing homes including high-efficiency air conditioners and equipment.
Tax credits for residential fuel cell systems.
Tax credits for fuel cell and microturbines used in a business.
Solar Photovoltaic and Hot Water Systems
This provision offers tax credits to individuals for residential solar energy systems.
For solar hot water systems, the allowable tax credit is 30% of the qualified solar system expenditures up to a maximum tax credit limitation of $2,000.
For solar photovoltaic (PV) systems, the allowable tax credit is 30% of the qualified PV system expenditures with no cap. This is new for 2009 through 2016.
To be eligible for the solar hot water system tax credit, the system must be certified by the Solar Rating and Certification Corporation
(SRCC) or the Florida Solar Energy Center (in the case of systems manufactured or sold in Florida) and produce 50% or more of the hot water needed by the residence. There is no qualification provided for PV systems (except in Florida, where systems must be rated and certified by the FSEC). Individuals may claim tax credits for either or both types of solar systems.
You will find that many so called “solar dealers” are not even licensed contractors and do not have SRCC or Florida Solar Energy Center
approved systems. If you claim the tax credit on a non-approved system, you, not the dealer, will be liable for any audit and penalties levied by the IRS. Don’t put yourself at risk……we can help you find a legitimate solar contractor in your area. Contact Us
and we will get you in touch with a licensed solar contractor with the proper approved systems no matter where you are in the United States.
The incentives apply to equipment placed in service during 2006-2016.
The Florida Solar Energy Standards Act:
All solar water and pool-heating collectors that are sold or manufactured in Florida must be tested and certified by the Florida Solar Energy Center
(FSEC). In addition, all solar water heating and pool systems sold must also be approved by FSEC. These requirements were established by the Florida Legislature through the Florida Solar Energy Standards Act. Through this Act, Florida Solar Energy Center
developed testing and certification requirements for solar collectors and design and installation criteria for solar systems.
You will find that many so called “solar dealers” are not even licensed contractors and do not have FSEC approved systems. If you claim the tax credit on a non-approved system, you, not the dealer, will be liable for any audit and penalties levied by the IRS. Don’t put yourself at risk. Please do your homework and hire a licensed solar contractor. You can visit flaseia.org (Florida Solar Enegry Industry Association) for FL residents. For all other states, start with seia.org (Solar Energy Industry Association) to find your local chapter.
An Important Distinction
There is an important difference between a tax deduction and a tax credit. A tax deduction is subtracted from income before total tax liability is computed. On the other hand, a tax credit is subtracted directly from the total tax liability. This means that a deduction and a credit have very different values, with a credit being 3 or more times more advantageous to the taxpayer than a deduction. For example, a tax credit of $1,000 for someone in the 28% tax bracket is equivalent to a tax deduction of $3,571.