Renewable Energy Source Property Law and Legal Definition

According to 26 CFR 1.23-2 [Title 26 -- Internal Revenue Chapter I -- Internal Revenue Service, Department of the Treasury Subchapter A -- Income Tax], renewable energy source property includes “any solar energy property, wind energy property, geothermal energy property, which meets the following conditions:

(1)The original use of the property begins with the taxpayer.

(2)The property can reasonably be expected to remain in operation for at least 5 years.

(3)The property meets the applicable performance and quality standards prescribed by law that are in effect at the time of the taxpayer's acquisition of the property.

Renewable energy source property does not include heating or cooling systems, nor systems to provide hot water or electricity, which serve to supplement renewable energy source equipment in heating, cooling, or providing hot water or electricity to a dwelling unit, and which employ a form of energy (such as oil or gas) other than solar, wind, or geothermal energy.