View all text of Subpart A [§ 21 - § 26]
§ 25D. Residential clean energy credit
(a) Allowance of creditIn the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of the applicable percentages of—
(1) the qualified solar electric property expenditures,
(2) the qualified solar water heating property expenditures,
(3) the qualified fuel cell property expenditures,
(4) the qualified small wind energy property expenditures,
(5) the qualified geothermal heat pump property expenditures, and
(6) the qualified battery storage technology expenditures,
made by the taxpayer during such year.
(b) Limitations
(1) Maximum credit for fuel cells
(2) Certification of solar water heating property
(c) Carryforward of unused credit
(d) DefinitionsFor purposes of this section—
(1) Qualified solar water heating property expenditure
(2) Qualified solar electric property expenditure
(3) Qualified fuel cell property expenditure
(4) Qualified small wind energy property expenditure
(5) Qualified geothermal heat pump property expenditure
(A) In general
(B) Qualified geothermal heat pump propertyThe term “qualified geothermal heat pump property” means any equipment which—
(i) uses the ground or ground water as a thermal energy source to heat the dwelling unit referred to in subparagraph (A) or as a thermal energy sink to cool such dwelling unit, and
(ii) meets the requirements of the Energy Star program which are in effect at the time that the expenditure for such equipment is made.
(6) Qualified battery storage technology expenditureThe term “qualified battery storage technology expenditure” means an expenditure for battery storage technology which—
(A) is installed in connection with a dwelling unit located in the United States and used as a residence by the taxpayer, and
(B) has a capacity of not less than 3 kilowatt hours.
(e) Special rulesFor purposes of this section—
(1) Labor costs
(2) Solar panels
(3) Swimming pools, etc., used as storage medium
(4) Fuel cell expenditure limitations in case of joint occupancyIn the case of any dwelling unit with respect to which qualified fuel cell property expenditures are made and which is jointly occupied and used during any calendar year as a residence by two or more individuals, the following rules shall apply:
(A) Maximum expenditures for fuel cells
(B) Allocation of expendituresThe expenditures allocated to any individual for the taxable year in which such calendar year ends shall be an amount equal to the lesser of—
(i) the amount of expenditures made by such individual with respect to such dwelling during such calendar year, or
(ii) the maximum amount of such expenditures set forth in subparagraph (A) multiplied by a fraction—(I) the numerator of which is the amount of such expenditures with respect to such dwelling made by such individual during such calendar year, and(II) the denominator of which is the total expenditures made by all such individuals with respect to such dwelling during such calendar year.
(5) Tenant-stockholder in cooperative housing corporation
(6) Condominiums
(A) In general
(B) Condominium management association
(7) Allocation in certain cases
(8) When expenditure made; amount of expenditure
(A) In general
(B) Expenditures part of building construction
(f) Basis adjustments
(g) Applicable percentageFor purposes of subsection (a), the applicable percentage shall be—
(1) in the case of property placed in service after December 31, 2016, and before January 1, 2020, 30 percent,
(2) in the case of property placed in service after December 31, 2019, and before January 1, 2022, 26 percent,
(3) in the case of property placed in service after December 31, 2021, and before January 1, 2033, 30 percent,
(4) in the case of property placed in service after December 31, 2032, and before January 1, 2034, 26 percent, and
(5) in the case of property placed in service after December 31, 2033, and before January 1, 2035, 22 percent.
(h) Termination
(Added Pub. L. 109–58, title XIII, § 1335(a), Aug. 8, 2005, 119 Stat. 1033; amended Pub. L. 109–135, title IV, § 402(i)(1), (2), (3)(E), Dec. 21, 2005, 119 Stat. 2612, 2614; Pub. L. 109–432, div. A, title II, § 206, Dec. 20, 2006, 120 Stat. 2945; Pub. L. 110–343, div. B, title I, § 106(a)–(c)(3)(A), (c)(4)–(e)(1), Oct. 3, 2008, 122 Stat. 3814–3816; Pub. L. 111–5, div. B, title I, §§ 1103(b)(2)(B), 1122(a), Feb. 17, 2009, 123 Stat. 320, 324; Pub. L. 112–240, title I, § 104(c)(2)(F), Jan. 2, 2013, 126 Stat. 2322; Pub. L. 114–113, div. P, title III, § 304(a), Dec. 18, 2015, 129 Stat. 3039; Pub. L. 115–123, div. D, title I, § 40402(a), (b), Feb. 9, 2018, 132 Stat. 148; Pub. L. 116–260, div. EE, title I, § 148(a)–(b)(2), Dec. 27, 2020, 134 Stat. 3055; Pub. L. 117–169, title I, § 13302(a)–(c)(2), Aug. 16, 2022, 136 Stat. 1946, 1947.)