What is a solar tax credit?
Solar tax credit is a federal tax credit for people who have purchased solar energy systems for their homes. The sun tax credit can be applied to both existing houses and newly built houses and accessories, but not for rental properties. In 2011, up to 30% of the cost of the construction and installation of these solar energy systems can be applied to a solar tax credit. This amount will be deducted from the total income tax, which claims a tax credit, provided that it has properly applied and submitted the necessary forms. The sun heaters collect and warm water by thermal energy that are generated by the sun, while solar panels convert light energy into electricity. The sun tax credit for each system will remain effective until 31 December 2016.
To qualify for a tax credit, the solar water heater must derive at least 50% of their heating capabilities directly from the Sun. This percentage is called a qualifying property and if it is not met, the solar water heatery will not be entitled to a solar tax credit. In addition, an energy tax loan cannot be required if the solar water heater is used for a pool or hot tub if water is not used in the home, or if heating is not certified by solar evaluation and Corporation (SRCC) certification. Home owners can only claim a solar heater loan, unlike the entire system for heating and storage of water. If these requirements are met, 30% of the total cost of the water heater, installation costs and work costs can be required for a tax credit.
solar panels are governed by similar requirements to solar water heaters and are also eligible for 30% of the total cost. It must provide electricity to the sales and stay in the use of a tax credit. In addition, solar panels must meet current safety instructions and adapt to general electrical and fire codes
To apply for a solar tax credit, a person must fill in form 5695 Internal Revenue Service (IRS) After obtaining the necessary certification for the solar energy system. This form will be used on line 52 forms 1040 to claim a tax credit. Every year, a different form of 5695 and the tax credit should be claimed by the year when the solar energy system was completed and used.