The tax credit situation is one that is constantly evolving.
The following is a link that will allow you learn more about the potential tax credits that are available to you:
There also may be tax incentives or credits from your State Government which can be taken in addition to the Federal tax credits. Follow this link to see what your state offers for tax incentives:
You should understand that there is a distinct difference between a tax deduction and tax credit.
A tax deduction is a reduction from income before the total tax liability is computed.
A tax credit is an actual reduction in your tax bill.
Take a look at the table below which illustrates the following example.
Suppose your taxable income is $30,000 and you receive a $2000 tax deduction. Your taxable income will now be $28,000. If you are in the 28% tax bracket, your taxes due will be $7,840 ($28,000 x .28) instead of $8400, ($30,000 x .28) for a tax reduction of approximately $560.
If you receive a $2000 tax credit, however, you can deduct it from your taxes due of $8400 for a new total of $6400. You can definitely see the distinction between a deduction and a credit!
| Your Taxable Income (28% tax bracket) |
Your Normal Income Tax | Deduction vs Credit | New Taxable Income | Taxes Paid | SAVINGS |
| $30,000 | ($30,000 x .28) = $8400 | $2000 DEDUCTION | $28,000 | ($28,000 x .28) = $7,840 | $560 |
| $30,000 | ($30,000 x .28) = $8400 | $2000 TAX CREDIT | $30,000 | ($8,400 – $2000) = $6,400 | $2000 |
Radiantec offers several products that may be eligible for Federal and State tax incentives:
- Polaris Water Heater
- Solar Panels
- Solar Storage Tanks
Since we are radiant heat experts and not tax experts, you will want to speak with your tax advisor to see if the products you purchase are eligible for the credit.
Please keep in mind that even if the products you purchase are not eligible, they most certainly are still a worthwhile investment for you. For instance, all Radiantec solar systems provide an excellent payback, especially with the escalating cost of fuel, without any type of tax credit or incentive.
Since the solar portion of our company is non-profit, we are able to provide you with a system that is reasonably priced to begin with. If you are then eligible for a tax credit, that’s icing on the cake!