Federal Tax Credits for Residential Use

The Emergency Economic Stabilization Act of 2008 creates a full 30% Federal Tax Credit for residential PV Solar Electric projects. This is a TAX CREDIT (not a deduction)-- it is a direct, dollar-for-dollar reduction from your taxes owed, and IS NOT limited by the Alternative Minimum Tax (AMT) and unlike the previous version, there is NO CAP!

The 30% credit is based on the net cost of the project (net of the rebate) and can significantly lower the cost of a residential solar project.

Use this form for 2009 tax return (and link to the attached file)

It’s pretty simple-- Lines 12 and 17.   Line 12 is your cost (net of the rebate), Line 17 is 30% of this amount.

Documentation is only required when requested (in an audit).