The credit for the purchase of a residential energy-efficient property has
been extended through 2008. This credit applies to the installation of solar
and fuel cell equipment at the taxpayer’s residence, which may include a
co-op or condo:

o Solar water heater - For use in the taxpayer’s main home or second residence and at least half of the energy used is derived from the sun. The credit is 30% of the qualified property’s cost, limited to a maximum credit of $2,000.

o Solar energy electric generating equipment – For use in the tax-payer’s main home or second residence. The credit is also 30% of cost,
limited to $2,000.

o Qualified fuel cell property - A fuel cell power plant that generates electricity by electrochemical means and has a 30% generation efficiency
that is installed at the taxpayer’s primary residence. The credit is $500 for each 0.5 kilowatt of capacity with no maximum.

Cost includes installation as well as hardware costs, only applies to equip-ment installed in a home located in the U.S., and can't be used to heat a swimming pool or hot tub. Taxpayers receive no benefit from this credit to
the extent that they are subject to the alternative minimum tax (AMT).