Forida Solar Hot Water

Qualifies For the 2006
30% Tax Credit!

*Please consult with your Tax specialist or Accountant
Details below.
$500.00 Florida Rebate
These are SRCC Certified Skyline System 3 20-01 & 10-01 Solar Hot Water Systems that qualify for the 2006 Federal Income Tax Credit. The credit has a $2,000 cap. The installed system must meet 50% or more of your water heating energy needs. Always check with you tax professional for tax advice.
IRS Form 5695 - Residential Energy Credits.

These systems are also exempted from the Florida Sales Tax.

 

NOTE: This 30% tax credit was not extended in the Energy Bill that passed in December, 2007. We hope for a special extension, but we can not count on it. It does go through 2008.

Residential Solar and Fuel Cell Tax Credit
Last DSIRE 07/30/2007

Incentive Type: Personal Tax Credit
Eligible Renewable/Other Technologies: Solar Water Heat, Photovoltaics, Fuel Cells, Other Solar Electric Technologies
Applicable Sectors: Residential
Amount: 30%
Maximum Incentive: $2,000 for solar electric and solar water heating; $500 per 0.5 kW for fuel cells Carryover Provisions: Excess credit may be carried forward to succeeding tax year
Eligible System Size: Not specified
Equipment/Installation Requirements: Solar water heating property must be certified by SRCC or by comparable entity endorsed by the state. At least half the energy used to heat the dwelling's water must be from solar in order for the solar water heating property expenditures to be eligible.
Authority 1: 26 USC ¤ 25D
Date Enacted: 8/8/2005
Effective Date: 1/1/2006
Expiration Date: 12/31/2008

Summary:
The Energy Policy Act of 2005 (thomas.loc.gov/cgi-bin/query/z?c109:h6: H.R. 6) establishes a 30% tax credit up to $2,000 for the purchase and installation of residential photovoltaic (solar electric) and solar water heating property. An individual can take both a 30% credit up to the $2,000 cap for a photovoltaics system and a 30% credit up to a separate $2,000 cap for a solar water heating system. A 30% tax credit up to $500 per 0.5 kW is also available for fuels cells.

Solar water heating property must be certified for performance by the Solar Rating Certification Corporation or a comparable entity endorsed by the government of the State in which the property is installed. Note that the tax credit does not apply to solar water heating property for swimming pools or hot tubs.

The credit is calculated based on the individual's expenditures excluding subsidized energy financing, which is defined as "financing provided under a Federal, State, or local program a principal purpose of which is to provide subsidized financing for projects designed to conserve or produce energy." Consumers who receive other incentives are advised to consult with a tax professional regarding how to calculate this federal tax credit.

If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. Expenditures include labor costs for the onsite preparation, assembly, or original installation of the system and for piping or wiring to interconnect the system to the dwelling.

To be eligible for the credit, a system must be "placed in service" or activated between January 1, 2006, and December 31, 2008. Expenditures with respect to the equipment are treated as made when the installation is completed. This provision is particularly important for expenditures made before 2006 for projects not "placed in service" until 2006. If the installation is on a new home, the "placed in service" date is the date of occupancy by the homeowner. The IRS will be issuing further guidance on claiming this credit.

IRS Publication 553 1. (Rev. March 2007)
Residential energy efficient property credit. You may be able to take a credit of 30% of your costs of qualified solar electric property, solar water heating property, and fuel cell property. This includes labor costs properly allocatable to the onsite preparation, assembly, or original installation of the property and for piping or wiring to interconnect such property to the home. This credit is limited to:

  • $2,000 for qualified solar electric property costs,
  • $2,000 for qualified solar water heating property costs, and
  • $500 for each half kilowatt of capacity of qualified fuel cell property costs are paid.
    • For more details, see Form 5695.

    Contact:
    Information Specialist - IRS
    Internal Revenue Service
    1111 Constitution Avenue, N.W.
    Washington, DC 20224
    Phone: (800) 829-1040
    Web site: http://www.irs.gov

    Florida Solar Energy Center EPAct2005 Summary

    $500.00 Florida Solar Energy System Incentives Program

    For residential systems installed by a licensed plumbing or solar contractor. (Other rebates apply for commercial and other solar installations). For details please go to Solar Energy System Incentives Program.

    As of March 2008, the funding has run out. More funding may be available in July 2008. See above link.


    Florida Solar Hot Water