Tax credits are available for qualified solar water heating and photovoltaic systems. The credits are available for systems “placed in service” from January 1, 2006 through December 31, 2016. The tax credit is for 30% of the cost of the system, up to $2,000. After December 31, 2008, this $2,000 cap will be removed for photovoltaic systems (but not solar water heaters). This credit is completely separate from the $500 home improvement credit.
|Solar Energy Systems||Solar Water Heating|| ||30% of cost, up to $2,000|
|Photovoltaic Systems||Photovoltaic systems must provide electricity for the residence, and must meet applicable fire and electrical code requirement.||30% of cost, up to $2,000. After January 1, 2009 the $2,000 cap no longer applies.|