The 2019 Energy Tax Credits
As part of the 2018 Congressional budget deal signed into law, many of the previously expired Energy Tax Credits had been fully restored retroactively for 2017 (for verification, see section 40401 and 40402 are tax extenders included in the passed Bipartisan Budget Act of 2018) – but not yet for 2018. Geothermal, wind, and fuel cells were extended through 2021 to match solar.
2019 Energy Tax Credits
There are significant “Renewable Energy Tax Credits” for 30% of the costs of major energy installations. These credits are unlimited, and include labor on installation for the following:
solar water heaters
solar panels
geothermal
heat pumps
small wind turbines
fuel cells
The 30% credits decline through 2021, and are as follows:
2018: 30%
2019: 30%
2020: 26%
2021: 22%
The installations must be installed in a home you own and use as a residence (no rentals, but second homes qualify).
These energy tax credits are non-refundable, but can be carried-over to a future tax filing year. More information can be found on the Energy Star Renewable Energy Tax Credits website. Prior to the Congressional budget deal, only the solar credits had remained in place.
What About the Residential Energy Property Tax Credits?
The very popular residential “Energy Property Tax Credits” for Energy Star certified energy efficiency improvements has not yet been restored for 2018.
These popular residential energy tax credits equaled 10% of the cost of product to $500, or a specific amount from $50–$300 for the following eligible items:
