What energy credits are available?

Energy Tax Credits for Taxpayers

Taxpayers have various energy tax credits available to them, which can be claimed for making energy-efficient improvements or installing renewable energy systems. Below are the types of energy tax credits currently available:

Federal Energy Tax Credits

Energy Efficient Home Improvement Credit

• This credit applies to qualified energy-efficient improvements made to a taxpayer's home.
• Eligible improvements may include certain high-efficiency heating and air conditioning systems, water heaters, windows, doors, and insulation materials.
• The credit amount can vary based on the type of improvement and the year in which the expenses were incurred.
• For more details, refer to the Energy Efficient Home Improvement Credit | Internal Revenue Service.

Residential Clean Energy Credit

• Taxpayers who install renewable energy systems such as solar panels, solar water heaters, wind turbines, geothermal heat pumps, and fuel cells in their homes may be eligible for this credit.
• The credit is a percentage of the cost of the system and installation.
• The credit percentage may change depending on the year the system was installed.
• For additional information, visit the Home energy tax credits | Internal Revenue Service.

Business Energy Investment Tax Credit (ITC)

• Businesses that install solar energy systems are eligible for the ITC, which is a tax credit based on a percentage of the investment in the solar property.
• The credit is also available for other renewable energy technologies.
• For further guidance, see Federal Solar Tax Credits for Businesses | Department of Energy.

Production Tax Credit (PTC)

• This credit is for businesses that produce renewable energy from resources such as wind or solar.
• The credit is based on the amount of electricity produced and sold.
• Specific eligibility criteria apply, and the credit amount can vary.
• More information can be found at the same Department of Energy link provided above for the ITC.

State-Specific Energy Tax Credits

Georgia Energy Tax Credits

• Georgia offers tax credits for various energy-efficient and renewable energy investments.
• Credits include those for Energy Star certified geothermal heat pump systems, lighting retrofit projects, and energy-efficient buildings.
• The credit amounts and ceilings are specified for different types of property and installations.
• For detailed information, refer to Georgia Code Title 48. Revenue and Taxation § 48-7-29.14.

Arizona Energy Tax Credits

• Arizona provides tax credits for charitable donations to Qualifying Charitable Organizations (QCOs) and Qualifying Foster Care Charitable Organizations (QFCOs), which may include organizations involved in energy efficiency or renewable energy projects.
• The Arizona Commerce Authority administers the Qualified Small Business Capital Investment program, which includes tax credits for certain energy investments.
• For eligibility and application details, visit Tax Credits | Arizona Department of Revenue.

New Mexico Gross Receipts Tax Overview

• While not a direct energy tax credit, New Mexico's Gross Receipts Tax may apply to businesses involved in the sale of energy-efficient products or renewable energy systems.
• The tax rate varies and can impact the pricing of energy-related goods and services.
• More information is available at Gross Receipts Tax Overview : Businesses - Taxation and Revenue New Mexico.

Indiana Energy Tax Credits

• Indiana offers various tax credits, including those related to energy efficiency and renewable energy investments.
• Credits may be available for adoption (which can include adoption of energy-efficient practices), coal gasification, and other energy-related investments.
• Specific details can be found at DOR: Credits - IN.gov.

Taxpayers should carefully review the eligibility requirements and consult the provided resources for each credit to ensure compliance and maximize their tax benefits.