Energy Tax Credits

Many of the residential Energy Tax Credits for improving your personal residence are gone for 2018. However, the remaining ETCs are available for Solar Water Heating, Solar Electric, Small Wind Energy, Geothermal Heat Pump and Fuel Cells. The credit is equal to 30 percent of the costs, including labor (Fuel Cells limited to $500). The credit is available to new construction and to existing personal residences. The Fuel Cell credit is only available for your principal residence. The credits and limitations are claimed by filing Form 5695.

Plug-In Electric Vehicles

The tax credit for hybrid vehicles is gone for 2018; however, there is a tax credit for Plug-In Electric Vehicles (PIEV). You can claim a credit for each new qualifying four-wheeled PIEV purchased or leased. If your use is divided between business and personal, the credit will be partly a General Business Credit and a non-refundable personal credit. These energy tax credits are non-refundable but can be carried over to a future tax filing year. The PIEVs that qualify are those manufactured primarily for use on public roads, not off-road vehicles, ATVs or golf carts. The credit ranges for $2,500 to $7,500. Be careful: the credit phases out when a manufacturer has sold more than 200,000 units. Search “plug-in electric drive motor vehicles quarterly sales” at IRS.gov to check the status of a manufacturer’s quarterly sales.

This is only a summary. Please be sure to read the IRS instructions, or call us at the number below.

Chris Anselmo is an attorney, CPA and a personal financial specialist. For our readers, Chris provides a free 30-minute consultation, in person or on the phone. To reach him, call his office at 440.886-3550.