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How to apply for a solar water heater tax credit - IRS Form 5695 | Solar Energy System Tax Credit

How to apply for a solar water tax credit, using form 5695.

Note: The credit is not available for expenses for swimming pools or hot tubs. The water must be used in the dwelling.



How much:
30% of the cost (including installation/labor costs), with no upper limit.
Timing:
Tax credit in effect in through 2016. Must be installed in a home you own and use as a residence (no rentals, but second homes qualify) between January 1, 2006 and December 31, 2016.
Details:
At least half of the energy generated by the solar water heater ("qualifying property") must come from the sun.
Homeowners may only claim spending on the solar water heating system property, not the entire water heating system of the household.
The system must be certified by the Solar Rating and Certification Corporation (SRCC).
The water must be used in the dwelling.
The credit is not available for expenses for swimming pools or hot tubs.


Tax Form
For products "placed in service", you need to file the IRS Form 5695and submit it with your taxes
 The residential energy tax credit (from Form 5695) was claimed on line 52.
What you need to submit and save:
Save your receipts and the Manufacturer's Certification Statement for your records.
Submit Form 5695 with your taxes.