Green Daily

Did you install a solar water heating system or a photovoltaic system in your home in 2007? If you did you may qualify for up to $2,000 in tax credits on the water heating system and up to $1,000 in credits on the photovoltaic system. In both cases you can write off up to 30% of the costs. For example, if your solar water heating system cost $10,000, then you could get a tax credit of $2,000 (30% x 10,000 = $3300, but you can only write off $2,000 of that).

For a solar water heating system to qualify:

* At least half of the energy generated must come from the sun. Homeowners may only claim spending on the solar water heating system property, not the entire water heating system of the household.

* The credit is not available for expenses for swimming pools or hot tubs.

* The water must be used in the dwelling.

* The system must be certified by the Solar Rating and Certification Corporation (SRCC).

For a photovoltaic system to qualify, the system must provide electricity for the residence, and must meet applicable fire and electrical code requirements.

You must install these systems in in primary residence. You can't take the write off for systems installed in a second home or vacation home. You will need your receipt to qualify for this tax break.

Want to save money next year?

Check out the Green Daily Guide to Home Energy Efficiency. Get money-saving tips, tricks, and how-to videos for every homeowner. Not only will you save on your utility bill, next year you may be able to write it off your taxes too if legislation now pending in Congress passes to extend the tax credits to 2008!