Understanding the Residential Clean Energy Credit

💰The residential Clean Energy Credit is a valuable tax credit that can offset installation costs of clean energy power generation.

🏠Homeowners are eligible for the credit regardless of income or filing status, and there is no annual or lifetime limit to the credit amount.

⚡Eligible clean energy power generation systems include solar electric panels, wind turbines, geothermal heat pumps, and fuel cells.

🔋Battery storage technology is eligible for the credit, except for fuel cells which have their own set of rules.

📝To claim the credit, homeowners must use form 5695 and provide the address of the property where the clean energy system is installed.

What is the residential Clean Energy Credit?

—The residential Clean Energy Credit is a tax credit offered to homeowners who install solar, wind, geothermal, or fuel cell power generation systems.

How much is the credit?

—The credit is 30% of the materials and installation cost of the clean energy system.

Who is eligible for the credit?

—All homeowners, regardless of income or filing status, are eligible for the credit. There are no income limitations.

Is there a limit to the credit amount?

—There is no annual or lifetime limit to the credit amount.

What expenses are eligible for the credit?

—Eligible expenses include the materials and installation costs of the clean energy system. Finance charges and costs to improve the home's structure are not eligible.

00:00The federal government offers a tax credit to homeowners who install solar, wind, geothermal, or fuel cell power generation.

00:50The credit is 30% of the materials and installation cost of clean energy systems like solar electric panels, wind turbines, geothermal heat pumps, and fuel cells.

01:52The credit has no annual or lifetime limit and can be claimed by all filing statuses with no income limitations.

03:14Eligible expenses for the credit include material and installation costs, excluding finance charges and costs to improve the home's structure.

03:59The credit is claimed on form 5695, and homeowners must provide the address of the property where the clean energy system is installed.