How the Solar Energy Credit and Residential Energy Efficient Property Credits Work ?
This nonrefundable energy tax credit may help you pay for qualified residential alternative energy equipment, such as geothermal heat pumps, solar hot water heaters, and wind turbines. The credit was expanded by The American Recovery and Reinvestment Act in early 2009. A few of the previously imposed maximum amounts were eliminated and it now provides for a credit equal to 30% of the cost of qualified property. The credit is usually equal to 30% of the cost of the equipment and may include the cost of the labor used to install it. For 2009, there is generally no cap on this credit and it’s available for equipment placed into service through 2016. Regrettably, it’s a nonrefundable credit, which is an important, because in this case, your credit is limited to your tax liability.

