The federal government offers a tax credit for installing certain types of renewable energy systems, including solar hot water heaters. The credit is worth 30% of the cost of the system, up to $1,500. To claim the credit, you must file IRS Form 5695 with your tax return.

Other related questions:

Q: How do I claim my renewable energy credit?

A: You may claim your renewable energy credit by contacting your local utility company.

Q: Can I deduct a new hot water heater on my taxes?

A: Yes, you can deduct a new hot water heater on your taxes.

Q: How does the renewable energy tax credit work?

A: The renewable energy tax credit is a tax credit that allows taxpayers to claim a credit for certain qualifying renewable energy expenditures. The credit is equal to a certain percentage of the eligible expenditures, and the specific percentage depends on the type of renewable energy. For example, the credit for solar energy is 30%, while the credit for fuel cells is 50%. The credit is claimed against the taxpayer’s income tax liability.


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