Download Credit Flow Chart – Solar Power or Fuel Cells

Credit Flow Chart – Solar Power or Fuel Cells
Is the tax year 2006 or 2007?
No
Yes
No Credit
Is this residential property that uses solar
power or energy cells to create electricity?
No
Yes
No
Is this the taxpayer’s primary residence
(main home) or second residence?
Yes
Is this property used to heat water and
that has been certified for performance?
Yes
No
Is this property that uses solar energy to
generate electricity?
No
The credit for the
year is the sum of
the amount
determined in
boxes A and B.
No
Is this the taxpayer’s primary residence
(main home)?
Yes
Box A
Credit is 30% of the
cost (1) of the hot water
property limited to
$2,000 for the year.
Box B
Credit is 30% of the
cost (1) of the solar
energy property limited
to $2,000 for the year.
Yes
No
Is this property a qualified fuel cell
power plant?
Yes
Box C
The credit is $500 for
each 0.5 kilowatt of
capacity with no
annual limit.
(1)
The credit for the year
is the sum of the
amount determined in
boxes A , B and C.
The credit can only be taken in the year the installation of the property is completed (but only if
in 2006 or 2007). Then use the total costs incurred during 2006 and 2007.