Residential Energy Efficient Property Credit

A credit of 30 percent of the expenditures made by a taxpayer during the taxable year for:

• qualified solar electric systems;
• qualified solar water heaters;
• qualified fuel cell property;
• qualified small wind energy property; and
• qualified geothermal heat pumps.

The credit for expenditures made for qualified fuel cell property is limited to $500 for each one-half kilowatt of capacity of the property; the amounts of the other qualified expenditures eligible for the credit are not limited. In addition, this credit may be carried over if it exceeds the limitation imposed by section 26(a). The credit is available for property placed in service through Dec. 31, 2016.
The credit for solar electric property and solar water heating property is extended for property placed in service through December 31, 2021, at applicable percentages as described in the statute.