Certain solar-powered improvements are eligible for a tax credit

You are allowed a credit for 30 percent of certain expenditures that increase the energy efficiency of your personal residence. Costs eligible for the credit include qualified solar electric property expenditures, qualified solar water heating property expenditures, and qualified fuel cell property expenditures. The credit is available for residential energy-efficient property placed in service in 2006, 2007, and 2008. There is no requirement that property be new to qualify.
Qualified solar water heating property expenditures are expenditures for property to heat water for use in your residence if at least half of the energy used is derived from the sun. Qualified solar electric property expenditures are expenditures for property that uses solar energy to generate electricity for use in your home. Qualified fuel cell property expenditures are expenditures for qualified fuel cell property installed on or in connection with your home. Costs for labor properly allocated to the onsite preparation, assembly, or original installation of qualifying property and for piping or wiring to interconnect such property to the dwelling unit are also considered qualifying expenditures. Expenditures for swimming pools and hot tubs do not qualify.

The maximum credit allowed for any tax year is $2,000 for any qualified solar electric property expenditures or qualified solar water heating property expenditures, and $500 for each half kilowatt of capacity of qualified fuel cell property for which qualified fuel cell property expenditures are made. If your allowable credit exceeds your tax liability, the excess can be carried over to the next year.

If your home is jointly occupied and used during the year as a residence by two or more individuals, the maximum amount of qualifying expenditures that may be taken into account by all the owners is:
  • $6,667 in the case of any qualified solar electric property expenditures;
  • $6,667 in the case of any qualified solar water heating property expenditures; and
  • $1,667 in the case of each half kilowatt of capacity of qualified fuel cell property.

Tax Tips Small Business

  • Deducting the Business Use of Your Home

    Don't overlook your home office

    If you use a portion of your home for business, you may be able to take a home office deduction whether you are self-employed or an employee. Expenses that you may be able to deduct for business use of the home may include the business portion of real estate taxes, mortgage interest, rent, utilities, insurance, depreciation, painting, and repairs.

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Small Business Quick Tip

  • Employer Provided Education

    Employer-provided education assistance benefits of $5,250 provided under a written plan are excludable from wages. The education doesn't need to be job-related to qualify.
Saturday, 21st July 2018
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Tax Tips Personal

  • Giving to Charity

    New rules require diligent recordkeeping
    Keeping the receipts from your charitable contributions just became more of a priority. Starting January 2007, you will not be allowed to deduct charitable contributions of any amount unless you have the proof. What does this mean for you? Starting in 2007,

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Personal Quick Tip

  • IRA Contribution Deadline

    If by year-end you haven't contributed funds to your 2016 IRA, or if you've put in less than the maximum allowed, don't worry. You can contribute to either a traditional or Roth IRA until the April due date for filing your tax return for 2016 not including extensions. You can contribute up to $5,500 to your IRA each year. If you are age 50 or older, you are allowed to contribute an additional $1,000.