The solar panel industry is booming right now. With more than 3 million solar energy installations in the US, about 1 million were built in the last two years.
Getting solar panels is a great idea as they are much cheaper to use over the years than standard energy sources. However, along with the savings also comes additional tax credits for using clean, renewable energy. Do you know how to claim solar tax credits?
Sounds confusing? Don’t worry, we’ve got all the info you need to know to track down your tax credits and use them! That’s exactly what this detailed guide will cover; how to take advantage of your tax credits.
Nothing to worry about, let’s get going!
How to Qualify for Solar Tax Credits
Homeowners who install solar panels or make other energy-efficient home improvements can qualify for a federal tax credit. The solar tax credit is also known as the investment tax credit (ITC). Offers a dollar-for-dollar reduction in your federal taxes.
To qualify for the solar tax credit, you must install roof solar panels or make other energy-efficient improvements to your primary house in the United States.
How Much is the Solar Tax Credit?
The solar tax credit is a federal solar tax credit that offers a huge financial incentive for homeowners and businesses to go solar. The ITC is available for both residential and commercial solar projects.
It covers 30% of the cost of the system. In other words, if you spend $10,000 on a new solar system, you can claim a $3,000 tax credit on your federal taxes. The solar tax credit can be applied to both existing homes and new construction.
It’s also available for both purchase and lease agreements. There is no maximum limit on the solar tax credit, so you can claim the full 30% no matter how big your system is. Read the guide on average solar panel tax incentives at State Journal.
Will the Solar Tax Credit Expire?
The solar tax credit is set to expire at the end of 2019, so now is the time to take advantage of this generous incentive. After 2019, the solar tax credit will decrease to 26% in 2020 and then 22% in 2021.
After that, it will go away completely for residential solar customers. Businesses will still be able to claim a 10% credit.
So if you’re thinking about going solar, don’t wait! Contact a solar installer today to get started.
What Kind of Taxes Can You Deduct with the Solar Tax Credit?
The solar tax credit allows you to deduct 26% of the solar panel tax credit cost from your federal taxes. This is a huge incentive for going solar for both residential and commercial systems.
The solar tax credit is applied on purchases and leases. So it’s a great way to save money on your solar investment.
Claiming Solar Tax Credit For Your Business
Overall, solar tax credits are a great way to save money on your solar panel installation.
They are widely available and easy to claim. Be sure to do your research and talk to your tax advisor. This is to make sure you are taking advantage of all the credits available to you.
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