On your federal tax return, you can claim a tax credit of 30% of the cost of alternative energy equipment installed on your home, including solar hot water heaters, solar electric equipment and wind turbines. The installation must be on a property in the U.S., but does not have to be your principal home. This tax credit is available through calendar year 2016.
TAX TIP: There is no maximum dollar limit on the credit for most types of property. And, if your tax credit is more than the tax that you owe, you can carry forward unused portions of this credit to next year’s return. See IRS Form 5695 “Residential Energy Credits” for more information and to claim these credits.