Are installation costs covered by the tax credits?
Installation costs ARE COVERED for:
- HVAC (Heating, Ventilation and Air Conditioning) systems
- Water Heaters (including solar)
- Solar Panels
- Geothermal Heat Pumps
- Wind Energy Systems
- Fuel Cells
The tax credit for HVAC and non-solar water heaters is 30% of the cost plus installation costs, up to $1,500. The law specifies installation costs include: "expenditures for labor costs properly allocable to the onsite preparation, assembly, or original installation of the property."
The tax credit for solar water heaters, solar panels, geothermal heat pumps, wind energy systems, and fuel cells is 30% of the cost plus installation costs, with no upper limit. The law specifies installation costs include: "labor costs properly allocable to the onsite preparation, assembly, or original installation of the property and for piping or wiring to interconnect such property to the home."
Installation costs are NOT covered by the tax credit for:
- Windows
- Doors
- Insulation
- Roofs
The tax credit for windows, doors, insulation and roofs is for 30% of the cost of materials, up to $1,500.
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