How does the Solar Water Heater Tax Credit work?
If someone doesn’t make enough to pay into the tax system, how will the 30% tax credit work? As a refund?
This question is based on something I overheard and you can always learn something new about the IRS and how various deductions work. The company was listing the amount on the spreadsheet as money you would save from the purchase price from the unit but that must be false in any scenario.
Form 5695, Residential Energy Credits, from LAST year is in the link below. The new one should be up on that site eventually. But you can get an idea of how it works. Just ignore the part about the cap of $500 or $2000.
As you’ve guessed, the tax credit is not refundable – you won’t get paid if you don’t owe that much tax.
If you’re that poor, some cities like San Francisco or Berkeley (I think) may have programs to help you make your home more energy efficient, in some cases, even subsidizing a solar array.
PARABOLIC TROUGH REFLECTOR SOLAR WATER HEATER GREEN POWER