**UPDATED Under the Consolidated Appropriations Act of 2021**
The Non-Business Energy Property Tax Credits (Equipment Tax Credits for Primary Residences) have been retroactively extended from 12/31/2017 through 12/31/2021.
The Renewable Energy Tax Credits for fuel cells, small wind turbines, and geothermal heat pumps now feature a gradual step down in the credit value, the same as those for solar energy systems. New in 2021, wood or pellet stoves or larger residential biomass heating systems are included in these tax credits.
- 30% for systems placed in service by 12/31/2019
- 26% for systems placed in service after 12/31/2019 and before 01/01/2023
- 22% for systems placed in service after 12/31/2022 and before 01/01/2024
Tax Credit for Biomass Heating Systems (2021):
- 26% for systems placed in service between 01/01/2021 through 12/31/2022
- 22% for systems placed in service between 01/01/2023 and 12/31/2023.
Tax Credits for Home Builders: The tax credits for builders of new energy-efficient homes has been retroactively extended to homes built after December 31, 2017 through December 31, 2021.
Tax Deductions for Commercial Buildings: Section 179D of the Internal Revenue Code allows deductions for energy-efficient commercial buildings. These tax deductions were made permanent under the Consolidated Appropriations Act of 2021.