Tax Credits For Solar Water Heating

Yes solar water heaters can qualify for a tax credit.

Tax credits for solar water heating. The credit is available through the end of 2019. The state of hawaii offers a personal tax credit of 35 of the cost of the system or 2 250 whichever is less as well as a one time 750 rebate for existing homes not available for homes built after 2009. State solar hot water incentives. Federal solar hot water incentives.

Drops to 22 for tax year 2021 tax credit in effect in through 2021. This credit is worth a flat. Federal tax credits include 30 of the cost of solar hot water systems with no cap same federal tax credit for pv systems applies. They must also come with a thermal efficiency of 90 or up.

After that the percentage steps down each year and then stops at the end of 2021. Water heaters using oil gas or propane are all eligible as long as they have what s known as an energy factor of 0 82 or up. Credits for approved solar installations installing alternative energy equipment in your home can qualify you for a credit equal to 30 of your total cost. Use up to 30 less energy in your home by outfitting it with energy star certified products available across more than 75 categories.

Credit decreases to 26 for tax year 2020. New york offers a state tax credit of up to 5 000. 30 of the cost including installation costs with no upper limit. If you happen to have an electric heat pump heater then it must have an energy factor of at least 2 0.

Arizona and massachusetts for instance currently give state income tax credits worth up to 1 000 toward solar installations. All energy star qualified solar water heaters qualify for the tax credit solar panels photovoltaic systems solar panels or photovoltaic systems are solar cells that capture light energy from the sun and convert it directly into electricity.