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Yes, solar water heaters are eligible for solar tax credits under specific conditions:
Requirements for Qualification:
- Energy Source: A minimum of 50% of the energy produced by the system must be solar-generated.
- Certification: The system needs to be certified by the Solar Rating and Certification Corporation (SRCC) or another state-approved body.
- Usage Restrictions: The credit doesn’t cover water heaters for swimming pools or hot tubs. The heated water must be for use within the home.
- Safety Standards: For photovoltaic systems, the setup must conform to fire and electrical code requirements.
- Installation Costs: The credit includes the cost of installation.
- Residential Requirement: Interestingly, the home served by the system doesn’t have to be your primary residence to claim the tax credit.
Solar Tax Credit for Solar Water Heaters:
The Residential Clean Energy Tax Credit value is set to decrease gradually according to the following timeline:
- 30%: For systems operational between January 1, 2017, and December 31, 2019.
- 26%: For systems operational between January 1, 2020, and December 31, 2021.
- 30%: For systems operational between January 1, 2022, and December 31, 2032.
- 26%: For systems operational between January 1, 2033, and December 31, 2033.
- 22%: For systems operational between January 1, 2034, and December 31, 2034.
It’s essential to consult with a tax professional to make sure you meet all the requirements and to get detailed advice tailored to your situation.
