Federal Tax Credits - Solar Water Heaters

Solar Water Heaters Solar water heaters come in a wide variety of designs, all including a collector and storage tank, and all using the sun's thermal energy to heat water. Solar water heaters are typically described according to the type of collector and the circulation system. Tax Credit: 30% of cost with no upper limit Expires: December 31, 2016 Details: Existing homes and new construction qualify. Both principal residence and second homes qualify. Rentals do not qualify. Requirements At least half of the energy generated by the "qualifying property" must come from the sun. The system must be certified by the Solar Rating and Certification Corporation (SRCC) or a comparable entity endorsed by the government of the state in which the property is installed. Note: The credit is not available for expenses for swimming pools or hot tubs. The water must be used in the dwelling. Photovoltaic systems must provide electricity for the residence, and must meet applicable fire and electrical code requirement. Tax Credit includes installation costs. More Information

• How to apply
• Solar Water Heater FAQs
• All ENERGY STAR Qualified solar water heaters qualify for the tax credit.