Agency: Department of the Treasury
Description:
Tax credit of up to 30% (varying amounts depending on year) for expenditures for certain solar electric, solar water heater, fuel cell, small wind, geothermal heat pump, and battery storage technologies.
Bill Section:
13302
US Code:
26 USC 25D
New or Existing:
Existing
Potential Cost:
$22,000,000,000
Timeline:
2024 – 2034
Implementation Status/Rulemaking:
More information on the Residential Clean Energy Credit Source
TCS Notes:
The credit equals 30% of the costs of new, qualified clean energy property installed anytime from 2022 through 2032. Credit is reduced to 26% in 2033 and 22% in 2034. Credit must be claimed in the year the technology is installed, not purchased, and it is non-refundable. Any credits that exceed one’s tax burden can be carried forward and claimed in future years. There is no annual or lifetime limit on the tax credit, except for on fuel cells. Fuel cell property is limited to $500 for each half kilowatt of capacity. If more than one person lives in the home, the combined credit for all residents can’t exceed $1,667 for each half kilowatt of fuel cell capacity.