Solar Investment Tax Credit Explained
The federal solar tax credit was created to support the growth of the solar energy market. Below is general information on the federal tax credit so you can use it to your benefit!
The Federal Solar Tax Credit
- Incentive type – Personal tax credit and Commercial Investment Credit
- Eligible technology – Photovoltaic (Solar Power)
- Applicable sectors – Residential Federal Tax Credit – Commercial Federal Tax Credit
- Amount – 30% credit
Example: If the total cost of your solar installation is $25,000 , the solar tax credit would allow for $7,500 be deducted off the customers tax liability. The tax credit can be applied to multiple years if it exceeds the consumers owed taxes.
How to Claim the Solar Federal Tax Credit
Use the IRS Form 5695 & Instructions: Residential Energy Credits
Solar-electric systems placed in service after 12/31/2008: no maximum
Tax Credit Expiration
The tax credit will downgrade in 2019, so take advantage of this great incentive while it’s available!
Contact your CPA for more information on Solar Federal Tax Credit eligibility!