Energy Credit for Solar Panels

[Gretel]

I am trying to find a definite answer if solar panels also need a manufacturer certification and if installing costs qualify as well. For solar water heaters the answer is yes to both but I have run out of options with my research for solar panels.

Anyone knows?

[dsi]

I'm not in my office, but have you checked TTB?

[AJsTax]

go to

Energystar.gov
click on the 1040 button. was at bottom left last time I was on the site.
All the answers to the energy credits of all types are right there in one place.

[Gretel]

Thank you, DSI and AJ. I did both but did not find the answers to my question.

[Dusty2004]

On the Energy Star web site

What you need to submit and save:

You only need to submit Form 5695 with your taxes.

Save your receipts and the Manufacturer's Certification Statement for your records.

Related topics:

Which products qualify for a tax credit?

Is there an income limit on the tax credit?

Which components associated with my product are also eligible?

Is the $1,500 tax credit for each product? Each year? Each person?

Can the tax credit be carried over to future years?

There are links for each of them on the web site.

Dusty

[Jesse]

I am trying to find a definite answer if solar panels also need a manufacturer certification and if installing costs qualify as well. For solar water heaters the answer is yes to both but I have run out of options with my research for solar panels.

Anyone knows?

I would say definitely yes you need the manufacturer certification. I'm not 100% sure on the installation because it says "Generally, labor costs are included when calculating this credit".

http://www.irs.gov/newsroom/article/0,,id=214873,00.html

Residential Energy Efficient Property Credit

Homeowners going green should also check out a second tax credit designed to spur investment in alternative energy equipment. The residential energy efficient property credit, equals 30 percent of what a homeowner spends on qualifying property such as solar electric systems, solar hot water heaters, geothermal heat pumps, wind turbines, and fuel cell property. Generally, labor costs are included when calculating this credit. Also, no cap exists on the amount of credit available except in the case of fuel cell property.

Not all energy-efficient improvements qualify for these tax credits. For that reason, homeowners should check the manufacturer’s tax credit certification statement before purchasing or installing any of these improvements. The certification statement can usually be found on the manufacturer’s website or with the product packaging. Normally, a homeowner can rely on this certification. The IRS cautions that the manufacturer’s certification is different from the Department of Energy’s Energy Star label, and not all Energy Star labeled products qualify for the tax credits.

[Jesse]

http://www.irs.gov/pub/irs-drop/n-09-41.pdf

.04 Labor Costs. Section 25D allows the credit for expenditures for labor costs
properly allocable to the onsite preparation, assembly, or original installation of
residential energy efficient property described in section 3.01 of this notice and for
piping or wiring to interconnect such property to the dwelling unit.

[Gretel]

Thank you, Jesse.