Local Law Blogs

Still Plenty of Time to Take Advantage of the Residential Energy Efficiency Tax Credit

By Vincent J. Mangini

Originally created by the Energy Policy Act of 2005, the Residential Energy Efficiency Tax Credit provides a tax credit for the taxable year an amount equal to the sum of 30% of qualifying expenditures made by the taxpayer during such year for solar electric or solar water heating systems, fuel cell property, wind energy systems or a geothermal heat pump. See 26 U.S.C. § 25D.  All qualifying expenditures must be for property used as a dwelling located in the United States, but only qualified fuel cell property must be installed at property used as the taxpayer's principal residence.  All of the other expenditures may be installed either at the taxpayer's principal residence or another residence of the taxpayer.  This credit is applicable to qualifying property and expenditures placed in service before January 1, 2017.

Full post as published by New Jersey Law Blog on January 03, 2011 (boomark / email).