A tax credit of this size essentially takes that 30 percent of the total system’s cost and applies it to the taxes you owe for that year. Lucky for us, a good number of these renewable solutions do not have a no maximum cap to the amount we can claim, which means you won’t risk being at a loss for installing a renewable energy system. All those labor costs for prep-work, assembly and install would be covered under the total cost of the system. In terms of numbers, if the system cost $15,000, you could expect a credit of $4,500 on taxes you owe for the year it was installed. And if your tax credit exceeds what you owe for that year, it can be carried over to the next year up until 2016… Not a bad deal!
This tax credit isn’t even solely held to your primary residence; you can even claim it for a vacation home. The only difference is that the amount of the credit that you can utilize is dependent on the time that you are actually in that home. Rental properties, on the other hand, generally do not qualify as the owner does not usually live there. So what’s the rush then?