Federal & Local Tax Credits

federal and local tax credits, el cerrito

Hassler makes energy efficiency affordable. We will guide you through the tax credit process so your investment will pay off in the least amount of time possible. Check out the tax credit options below and give Hassler a call today to learn more about energy efficiency and solar tax credits.

Energy Efficiency:

25C: The Non-business Energy Property Credit.

This is ideal for remodelers. Make home improvements using qualified energy efficient products and collect a 10% tax credit subject to a $500 lifetime cap. Upgraded products include: exterior windows, exterior doors, adding insulation, and certain roofs (installation not included). There is also a credit (including installation) for select heating and air-conditioning systems, hot water heaters, biomass fuel stoves, and oil hot water heaters. A stipulation to the $500 credit limitation is that only $200 may be used for windows, and all improvements must be made to the taxpayer’s primary residence. https://www.irs.gov/Credits-&-Deductions/Individuals/Nonbusiness-Energy-...

25D: Residential Energy Efficient Property Credit.

Install qualified energy efficient property of: solar panels, wind turbines, geothermal heat pumps and fuel cells…in new or existing homes, get 26% of the expenditures back in tax credit. All must be placed in service on or before December 31, 2022. The credit for fuel cell expenditures made is limited to $500 for each one-half kilowatt of capacity of the property; the amounts of the other qualified expenditures eligible for the credit are not limited. https://www.irs.gov/Credits-&-Deductions/Individuals/Residential-Energy-...

179D: Commercial Buildings (and Multifamily built under Commercial Code) Energy Efficient Deduction.

Builders that surpass the minimum energy efficient standards in new construction and renovation receive a deduction. The more energy efficient the building is, the larger the deduction the builder receives (up to $1.80 per square foot). The energy efficiency elements evaluated in order to obtain this deduction are the building envelope, the HVAC system, and the lighting. The taxpayer must obtain a third party certification to verify the energy savings are legitimate. This tax incentive supports and rewards building owners who want to lower operating costs and increase operating profits. https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Commerci...

Solar:

Solar Investment Tax Credit(ITC):

A taxpayer may claim a credit of 26% of qualified expenditures for a solar PV and solar thermal system that serves a dwelling unit located in the United States that is owned and used as a residence by the taxpayer. Expenditures with respect to the equipment are treated as made when the installation is completed. If the installation is at a new home, the "placed in service" date is the date of occupancy by the homeowner. Expenditures include labor costs for on-site preparation, assembly or original system installation, and piping or wiring to interconnect a system to the home. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. The maximum allowable credit, equipment requirements, and other details vary by technology, as outlined below.