Contractor Help: The Wind, Solar, Geothermal and Fuel Cell Tax Credit (25D)

The Wind, Solar, Geothermal and Fuel Cell Tax Credit (25D)

Well, once again I am standing at Uncle Sam’s door looking for a handout to help me with my construction business. Let’ see what else he has in his “fix the economy” toolbox.

Previously, I told you about the Existing Home Retrofit Tax Credit (25C). Well, there is more good news. Tax Code Section 25D makes even more money available to your customers who choose to get serious about going green. Where 25C has $1,500 lifetime limit, 25D has no cap through December 31^st, 2016 and still allows 30% of the cost to be credited back to your customer. No cap… that allows for some genuine upgrades for those who are willing and able.

Tax Code Section 25D credits are available for:

• Fuel Cells
• Solar Panels
• Solar Water Heaters
• Geothermal Heat Pumps
• Small Wind Energy Systems

These credits are available for both new construction and existing homes. Also, it is my understanding the cost of installation can be included when calculating the cost of the improvement. This is great news for your customer as it allows for a larger tax credit than if labor was not included. I had to say it.

Your homeowner will need to claim the 25D Tax Credit on IRS Form 5695 when they file their federal income tax return. To do this correctly they will need to have the following documents.

• Receipts for materials and labor.
• Name and address of manufacturers involved.
• Identification of the class of eligible building envelope component.
• Make and model numbers of products that have these.
• A statement that the component is eligible for the credit.

I make light of looking for help from Uncle Sam, but intelligent business people (like us licensed contractors) are always looking for an edge.  Going green has been in the news for quite some time now and for several good reasons. There are people among us who care about the environment and they are willing to spend the money required to make things better. Whether they are trying to “keep up with the Jones’s” or they genuinely feel like being good stewards for mother earth is of no consequence. You, as an entrepreneur in the shelter industry, need to be attentive to the changing of the times and be available to collect your fair share. Customers are looking to go green and the current administration has no problem with handing out money. Apparently, it’s just like Doritos… we’ll just make more.

ps…don’t wait any longer – get your contractors license and start benefiting.

Stuart Winston

www.mycontractorslicense.com