|Incentive Type:||Personal Tax Credit|
|Eligible Efficiency Technologies:||Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Photovoltaics, Wind, Biomass, Geothermal Heat Pumps, Small Hydroelectric, Fuel Cells using Renewable Fuels|
|Eligible System Size:||Hydroelectric systems not to have generation capacity greater than 1 MW|
|Equipment Requirements:||Systems must be new and in compliance with all applicable performance and safety standards|
Residential taxpayers who install an energy system using a recognized non-fossil form of energy on their home after December 31, 2001 are eligible for a tax credit equal to the amount of the cost of the system and installation of the system, not to exceed $500. This cap is for individual taxpayers, so married taxpayers filing jointly can get a tax credit of up to $1,000 per household. The tax credit may be carried over for the following four taxable years.
Recognized non-fossil forms of energy generation means:
1. A system that captures energy or converts energy sources into usable sources, including electricity, by using:
2. A system that produces electric power from biomass or solid wood wastes; or
3. A small system that uses water power by means of an impoundment that is not over 20 acres in surface area.