To be eligible for the Residential Clean Energy Credit, you must meet the following criteria:
- Eligible Equipment: This credit applies to the installation of solar panels, wind turbines, geothermal heat pumps, solar water heaters, fuel cells, and battery storage systems.
- Installation Location: The system must be installed in a home located in the United States. Both primary and secondary residences qualify, but the credit for fuel cells is limited to primary residences.
- System Ownership: You must own the renewable energy system, either through purchase or financing. Leased systems or those under a power purchase agreement do not qualify.
- New Systems Only: The credit applies to new systems installed and operational for the first time. Second-hand or previously claimed systems are not eligible.
- Installation Timing: The system must become operational in the same tax year you claim the credit.
- Credit Calculation: The credit is 30% of the qualified expenses for installations made from 2022 to 2032, with decreasing percentages for 2033 and 2034.
- Claiming the Credit: To claim the credit, you must fill out IRS Form 5695 and report it on your federal tax return as a nonrefundable credit.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-eligibility-requirements-for-the-residential-clean-energy-credit/
