fs-2025-01.pdf

Here are the key points summarized in English:

Residential Clean Energy Property Credit

• The credit is a nonrefundable personal tax credit.
• Eligible property includes solar panels, geothermal systems, and fuel cells installed on or in connection with a taxpayer's principal residence.
• The credit amount is 26% of the total cost of eligible property, not exceeding $500.

Key Points

1. Used Property: No, used property does not qualify for the credit.
2. Subsidies: Public utility subsidies and rebates from manufacturers or sellers may affect the credit amount.
3. Recordkeeping: Taxpayers must keep records to establish the credit amount and maintain them as long as necessary.

Additional Information

1. The credit is claimed on IRS Form 5695, Residential Energy Credits.
2. Financing costs such as interest payments are not eligible expenditures for the credit.
3. A taxpayer subject to Alternative Minimum Tax (AMT) is eligible to claim the credit.
4. Government or public utility incentives may affect the credit amount.

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