Solar Thermal Incentives

Residential Renewable Energy Tax CreditFlag

Incentive Type: Personal Tax Credit
Eligible Solar Thermal Technologies: Solar Water Heating
Eligible Sectors: Residential
Eligible Customers: Homeowners
Amount: 30% of the eligible system costs, no maximum.
Details: Uses IRS Form 5695, expires December 31, 2016. Solar water heating property must be certified by the SRCC, and at least half of the energy needed to heat the building’s water must be provided by the solar thermal system. Solar pool and spa heating systems are not eligible, and the building does not have to be the taxpayer’s principal residence.
Website: http://www.energystar.gov/taxcredits

 

Energy-Efficient Mortgages (EEM)

Incentive Type: Federal Loan Program
Eligible Solar Thermal Technologies: Solar Water Heating, Solar Space Heating, Passive Solar Space Heating
Eligible Sectors: Residential
Eligible Customers: Homeowners
Amount: Varies
Details: Allows homeowners to pursue energy efficiency and renewable energy improvements, and secures lenders against loan default. Options include a Conventional EEM through Fannie Mae and Freddie Mac, Department of Veterans Affairs EEM, and a Federal Housing Authority EEM. Lenders who provide EEMs may become Energy Star lender partners providing other incentives.
Website: http://www.resnet.us/ratings/mortgages

 

Residential Energy Conservation Subsidy Exclusion – Personal & Corporate

Incentive Type: Personal & Corporate Exemption
Eligible Solar Thermal Technologies: Solar Water Heating, Solar Space Heating
Eligible Sectors: Residential, Multi-family Residential
Eligible Customers: Homeowners and building owners
Amount: 100% of the subsidy
Details: Per Section 136 of the US Code, energy conservation subsidies provided by public utilities are non-taxable.
Website: http://www.irs.gov/publications/p525/index.html