Form Wv/setc - Schedule Setc Residential Solar Energy Tax Credit (Page 2 of 2) in pdf

GENERAL INSTRUCTIONS

To claim this credit, this schedule must be completed and filed with your Personal Income Tax return (IT-140). The

schedule and return must be filed by the due date of the annual return without regard to extension of time for filing and payment

of tax.

These instructions are not a substitute for tax statutes and regulations. They are intended to facilitate the claiming of

this credit. The statutes are codified at West Virginia Code 11-13Z and the regulations at 110 C.S.R. 21D § 1, et. seq. and

may be obtained from the Secretary of State for a reasonable fee. Questions concerning interpretation of law or these forms

and instructions should be addressed to the West Virginia State Tax Department.

The Residential Solar Energy Tax Credit may be taken by any taxpayer who installs, or causes to be installed, a solar

energy system on property located in this state which is owned by the taxpayer and used as a residence after July 1, 2009.

The amount of the credit allowed against the taxes imposed in article twenty-one of the West Virginia Code is equal to thirty

percent of the cost to purchase and install the system up to a maximum amount of $2,000.

To qualify for the solar energy system tax credit, a solar energy system must:

Be a new and complete system able to collect, store, convert, monitor, and distribute energy to the

residence it serves

Be installed in the immediate vicinity of the residence served such that the solar energy is delivered

directly to the residence

Be a photovoltaic system, a solar domestic hot water system, or an active solar space heating

system.

SPECIFIC INSTRUCTIONS

Section A:

In order to qualify for the credit, the solar energy system must have been placed in service after July 1, 2009

on property located in West Virginia and used as a residence after July 1, 2009.

Section B:

Total cost to purchase and install shall include:

- architectural and engineering services, and designs and plans directly related to the construction or

installation of the solar energy system

- labor costs properly allocated to on-site preparation, assembly and original installation

- materials

Costs shall not include such items as extended warranties, delivery fees, discounts or rebates,

permit fees, operating and maintenance costs, repair costs, service contracts, supplemental heat-

ing equipment costs used with solar collectors, unpaid labor, etc.

The amount of the credit is 30 percent of the total cost, up to a maximum of $2,000. The solar energy system

is not eligible for the credit until it is placed in service. If the amount of the tax credit in any taxable year

exceeds the taxpayer’s liability for that year, the excess may be carried over and applied as a credit against

the tax liability of the taxpayer for succeeding taxable years until the earlier of the following:

1. Four taxable years have elapsed, or

2. The full amount of the excess credit is used.

No carryback to a prior taxable year is allowed for the amount of any unused portion of any annual credit

allowance.

Application of the credit allowed in combination with all other applicable tax credits, exemptions and deduc-

tions shall not reduce the tax liability below zero, and in no circumstances be applied as a refundable credit,

or result in a refundable credit.

If any unused credit remains after July 1, 2014, the amount thereof is forfeited.

Form Wv/setc - Schedule Setc Residential Solar Energy Tax Credit Page 2