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Residential Renewable Energy Income Tax Credit

January 8, 2024 | Reading Time: 3 minutes

What is the Residential Renewable Energy Income Tax Credit?

The Residential Renewable Energy Income Tax Credit, often referred to as the Federal Investment Tax Credit (ITC), is designed to encourage the adoption of renewable technologies by providing a 15% energy credit on the system’s expenditures against personal income tax or up to $1,000.

Who qualifies for the Residential Renewable Energy Income Tax Credit?

You may qualify for the Residential Renewable Energy Income Tax Credit if you are an owner or tenant of a residential property with an approved renewable energy technology, you are not a dependent of another taxpayer, and you occupy the property as your primary residence.

Can the credit carry over?

Yes, you can carry over any remaining credit amount and apply it to your income tax liability for any one or more of the following three taxable years.

How do I claim the Residential Renewable Energy Income Tax Credit?

To claim the Residential Renewable Energy Income Tax Credit taxpayers should submit a completed IRS Form 5695 with their federal income tax return.