Georgia Clean Energy Property Tax Credit Instructions

1. Review eligibility, criteria and other requirements associated with the clean energy property tax credit by checking the information provided on this website and the Department of Revenue regulations as well as any other applicable laws and regulations relevant to your particular project (i.e. building, environmental permits, etc.)
2. Complete installation of clean energy property. The clean energy property for which a tax credit is being claimed must be placed in service prior to applying for the clean energy property credit.
3. Retain all required documentation.
4. Complete appropriate GEFA preapplication form (below).
5. Await receipt of confirmation from GEFA.
6. Complete Department of Revenue Form IT-CEP-AP.
7. Attach GEFA confirmation to IT-CEP-AP and submit to Department of Revenue.
8. If tentatively approved, claim the tax credit on your state income tax form (attach signed IT-CEP).

Eligible Products

Solar energy equipment that uses solar radiation as a substitute for traditional energy for water heating as well as related devices necessary for collecting, storing, exchanging, conditioning, or converting solar energy to other useful forms of energy.

Solar energy equipment for domestic water heating must be certified for performance by the Solar Rating Certification Corporation, Florida Solar Energy Center, or by a comparable entity approved by the authority to have met the certification of Solar Rating Certification Corporation OG-100 or Florida Solar Energy Center GO-80 for solar thermal collectors, Solar Rating Certification Corporation certification OG-300 or Florida Solar Energy Center GP-5-80 for solar thermal residential systems, or both.

Additionally, the Georgia Environmental Facilities Authority deems that collectors or systems that have met the following certification standard(s) are eligible for the Georgia Clean Energy Property Tax Credit:

• Florida Solar Energy Center GP-7-80 (System)
• Solar Rating Certification Corporation OG-400 (Pool Heating Systems)

A listing of qualified products can be found here: 

Collectors

• FSEC Certified Collectors
• SRCC Certified Collectors

Systems

• FSEC Certified Systems
• SRCC Certfied Systems

Definitions and Examples

Collectors vs. System

A solar hot water collector is a device that collects solar radiation and converts it to heat. A solar hot water system integrates a collector or collectors, a water storage tank and other components such as pumps, controllers and/or heat exchangers into a single package system. Only those components defined in the certification standards are eligible for the tax credit.

Water Heaters

In order for the cost of a fossil fuel fired water heater to be eligible for the clean energy property tax credit, it must be part of a certified system. Stand-alone fossil-fuel fired (electric, natural gas, propane, etc.) water heaters are NOT eligible for the clean energy property tax credit. For example, a single tank system with electric backup is eligible if certified by SRCC or FSEC, however, a conventional water heater, even if replaced in conjunction with a solar water heating system, is NOT eligible.

Solar Pool Heaters

Certified solar hot water heaters for the purposes of heating water in a swimming pool are eligible for the Georgia Clean Energy Property Tax Credit.

Installers

Residential and general contractors must be licensed in accordance with state law. Georgia does not require additional certification or license to install solar thermal or hot water systems however consumers are encouraged to seek experienced contractors when installing clean energy property.

The State of Georgia does not recommend or endorse any installer or contractor however the following resources are provided for informational purposes.

• Southface Solar Road Map
• Georgia Solar Energy Association
• North American Board of Certified Energy Practitioners

Preapplication (required for preapproval of the clean energy property tax credit)

Please click here for the preapplication form.

Documentation (required to be kept by taxpayer)

Taxpayers are required to maintain documentation concerning any credits claimed. Documentation includes but is not limited to the following:

• Dated receipts, invoices, contracts marked paid, canceled checks, other proof of payment.
• System manuals, product information, specifications, literature, cut sheets, warranties, etc.
• Completed GEFA pre-application.
• Any applicable federal, state or local permits and/or licenses.
• Other reasonably available and relevant material that demonstrates eligibility for the tax credit.

Confirmation

1. Upon receipt of the pre-application by GEFA, the taxpayer will receive a confirmation. 
2. Print out the confirmation and attach to a completed Department of Revenue Form IT-CEP-AP.
3. Mail both forms to the Department of Revenue.
4. Within 60 days of receiving an application, the Georgia Department of Revenue will review and tentatively approve the application.
5. Upon receiving tentative approval, the taxpayer may claim the credit on his/her tax return for that tax year.

How much of a tax credit can be claimed for residential solar hot water?

The lesser of 35% of the cost of the clean energy property or the sum of $2,500.00 per dwelling unit applies for clean energy property related to solar energy equipment for domestic water heating.

Note: These limits do NOT apply to active solar space heating or solar electricity. Please see the active solar space heating or solar electricity sections for relevant information and tax credit limits.