To claim the Residential Clean Energy Credit, it is crucial to maintain accurate documentation, even though you do not need to submit these documents with your tax return. The IRS strongly recommends keeping these records in case of an audit or future reference. Here are the documents you should keep:
- Purchase Receipts: Keep receipts for the purchase of qualified clean energy property, including solar panels, solar water heaters, wind turbines, geothermal heat pumps, fuel cells, and battery storage technology.
- Installation Records: Maintain records of installation costs, including labor costs for onsite preparation, assembly, or original installation, and for piping or wiring to connect the property to the home.
- Manufacturer Certifications: If applicable, retain manufacturer certifications for the equipment, such as Solar Rating Certification Corporation certifications for solar water heaters.
- State or Local Incentives Documentation: If you received any state or local incentives, rebates, or credits, keep records of these to subtract from the total cost when calculating the federal credit.
- Records of Home Improvements: For related home upgrades necessary for the installation (e.g., new electrical panels), keep detailed records of these expenses.
These documents will help you substantiate your claim for the Residential Clean Energy Credit and adjust the basis of your home if the property is sold in the future.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-documents-do-i-need-to-keep-for-the-residential-clean-energy-credit/
