Tax Credits for Second Homes & Owner - Builders

[MountainDon]

OK. I've cleared up something I wasn't sure about; I thought I'd pass it along in case anyone else was similarly unsure.

The Federal Tax Credits for certain energy devices are available to second homes and to owner-builders. Not all of the credits, but some.

The following is taken from energystar.gov

The available tax credits for homeowners building their own homes are for photovoltaics, solar water heating, geothermal heat pumps and fuel cells. The credit for photovoltaic and solar water heating property does not have to be for your principal residence; so, rental units, second homes, etc... are all eligible. To qualify for the fuel cell credit, the new home you are building must be planned as your principle residence.

The tax credit for new windows, doors, insulation, roofs, HVAC and non-solar water heating ("eligible building envelope components" and "qualified energy property" (Section 25C)) are ONLY available for existing homes.


For items placed into service from January 1, 2009 through December 31 the tax credit is 30% with NO cap on photovoltaic equipment as in the past.

Tax credits are available for qualified solar water heating and photovoltaic systems. The credits are available for systems "placed in service" from January 1, 2006 through December 31, 2016. The tax credit is for 30% of the cost of the system, up to $2,000. After December 31, 2008, this $2,000 cap will be removed for photovoltaic systems (but not solar water heaters).

As for the definition of "qualified ... photovoltaic systems" here's the best I can find in the government info.
Photovoltaic systems must provide electricity for the residence, and must meet applicable fire and electrical code requirement.

IRS Form 5695 is used for the tax credit. (The link goes to the 2008 version of the form. For 2009 & up there would be a new form next tax season.)