" United States Residential Energy Efficient Property Credit (REEP) ''


The Residential Energy Efficient Property Credit provides an incentive for taxpayers to purchase alternative energy products and equipment for their home.

What is Residential Energy Efficient Property Credit ?

Tax credits provide a dollar-for-dollar reduction in the amount of taxes that you might owe to the Internal Revenue Service (IRS) as part of your actual tax bill.

How Does REEP Credit Work ?

In order to qualify for the credit, the energy-saving improvements must have been made in a home located in the United States. An individual taxpayer can claim REEP credit for eligible energy efficient assets.

How To Qualify for REEP Credit ?

A taxpayer can claim a credit of 26% of your cost of the eligible property. You can include any labor costs for onsite preparation, basic installation or assembly of the property.

How Much Credit Can Claim under REEP ?

REEP credit is limited to an overall lifetime credit limit of $500. REEP credit is non-refundable. A nonrefundable tax credit allows taxpayers to reduce their tax liability to zero, but not below zero.

What are the Limits for Claiming REEP Credit ?

REEP credit can be applied to include the installation of solar electric property, solar water heaters, geothermal heat pumps, small wind turbines, fuel cell property and qualified biomass fuel property.

Which Improvements are Qualified for REEP Credit ?

How to Claim for Residential Energy Efficient Property Credit ?


Claim the REEP credit by filing Form 5695 with your tax return.