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Federal Tax Credits for Commercial Renewable Energy Installations

What do these credits count towards?

The benefits listed below are part of the Business Energy Investment Tax Credit (ITC). Corporations can install solar electric, solar water-heating, fuel cell, small wind, and geothermal heat pump systems, and receive a tax credit for adhering to any required rules or regulations.

For information on installations on a residential scale, please reference our page on Federal Tax Credits for Residential Renewable Energy Installations.

What are the benefits of my installation?

Tax credits and regulations differ based on which installation you’ve implemented and when it was deemed serviceable.

Solar Electric & Solar Water-Heating Systems
Any systems beginning installation before the end of 2019 will carry the highest tax credit. Passive solar systems and solar pool-heating systems are not eligible for this credit.

  • Construction began by 12/31/2019: 30% credit
  • Construction began between 1/1/2020-12/31/2020: 26% credit
  • Construction began between 1/1/2021-12/31/2021: 22% credit
  • Construction began after 1/1/2022: 10% credit

Fuel Cell Systems
The fuel cell system must maintain a minimum capacity of 0.5 kW that have an electricity-only generation efficiency of 30% or higher. Up to $1,500 per 0.5 kilowatt of capacity on fuel cells is covered by this credit, but 30% of the system costs otherwise can be covered by the credit.

Small Wind Systems
Small wind systems placed in service after 12/31/2008 may receive a credit equivalent to 30% of the product and installation costs. To be eligible, the system must not exceed 100 kW in capacity and meet performance standards from the American Wind Energy Association (AWEA) or the International Electrotechnical Commission (IEC).

Geothermal Heat Systems
Geothermal heat systems can receive 10% credit for the cost of products and installation. This covers any eligible equipment up to, but not including, the electric transmission stage.

Please note…
We cannot provide legal advice to our customers. If you have any questions or concerns specific to your installation, seek the counsel of your tax preparer or other trusted adviser.

Source: http://energy.gov/savings/business-energy-investment-tax-credit-itc