Despite calls for its renewal, Congress hasn’t addressed the issue of the popular residential energy credit, which officially expired after 2017. This credit, which is generally equal to 10% of the cost of qualified energy-saving improvements made to a principal residence, may be part of any “extenders legislation” eventually enacted this year. But that doesn’t mean homeowners are completely shut down for now.
BY KEN BERRY, J.D. – CPA PRACTICE ADVISOR TAX CORRESPONDENT
Alternatively, a taxpayer may still claim the “residential renewable energy credit” for qualified equipment, including expenses for solar, wind, geothermal and fuel-cell technology. For 2019, this credit is equal to 30% of the cost of alternative energy equipment installed in your home, or three times the percentage for the regular residential energy credit.
But the alternative credit is being phased out over a three-year period. For 2020, it drops down to…