Are You Cashing in on Your Available Tax Credits?

Are You Cashing in on Your Available Tax Credits?Qualifying solar panels and water heaters are the last remaining federal tax credits available for homeowners. These credits were part of the Recovery Act of 2009, aimed at energy savings and job creation.

Originally set to expire at the end of 2016, along with other credits geothermal heat pumps and energy improvements, the credits for solar were extended through 2021.

The credit covers primary and vacation homes for solar panels, while the credit for water heaters applies to primary homes only. Both existing and new home construction qualify for the program. The panels must meet state and local codes for fire and electrical installations. The water heater must meet the U.S. Department of Energy’s Energy Star standards for solar water heaters.

The amount of the tax credits for the solar panels or photovoltaic systems are available on a sliding scale. If you install them:

  • In 2018 or 2019, you’ll qualify for a 30 percent credit.
  • In 2020, the credit will be 26 percent.
  • In 2021, the credit drops to 22 percent.

The purchase price, cost of installation and labor qualify for the tax credit and there is no upward limit on the amount for both solar panels and water heaters.

Solar-Ready HVAC Systems

A less generous but still active credit is available for homeowners who install solar-ready heat pump and air conditioning systems, like those Lennox offers in its SunSource Home Energy System.

These tax credits can help you defray the cost of installing solar for your home. Doing so will help you cut your energy costs using free energy. For more information, contact Mowery Heating, Cooling and Plumbing, serving homeowners in greater Indianapolis.

Our goal is to help educate our customers in Brownsburg, Indiana and surrounding areas about energy and home comfort issues (specific to HVAC systems). 

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