Federal Solar Tax Credit - Maximize Savings
Homeowners looking to switch to solar should take advantage of the Investment Tax Credit (ITC), which was increased to 30% in 2022. This valuable incentive allows you to reduce your solar installation costs by a third, making now the perfect time to make the switch to clean energy.
The ITC applies to both residential and commercial solar systems, offering significant savings that can accelerate your return on investment. By acting now, you can maximize these savings while contributing to a more sustainable future.
The Investment Tax Credit (ITC), also known as the Residential Clean Energy Credit or Federal Solar Tax Credit, is a federal incentive designed to increase renewable energy production and help more homeowners install solar. This incentive was set to expire after 2024, but through the passed Inflation Reduction Act of 2022, this renewable energy incentive was extended and increased to 30% until 2032. The incentive drops to 26% in 2033, 22% in 2034, and ends in 2035. Now, more than ever, is the right time to go solar!
Solar Tax Credit Eligibility
Our expert Solar Advisors are dedicated to helping you maximize your savings by determining your eligibility for the federal solar tax credit. With years of experience, they guide you through the process to ensure you receive the full benefits you’re entitled to, making your switch to solar as cost-effective as possible.
To qualify for the solar tax credit, you must own your solar energy system rather than lease it, and the system must be installed at your primary or secondary residence in the U.S. The credit applies to both new installations and expansions of existing systems. Our team will walk you through each step, from eligibility verification to filing the necessary paperwork, so you can take full advantage of this valuable incentive. Here’s what you need to qualify:
- Homeowners are eligible for the ITC credit.
- Solar or battery backup must be installed and operational the same year you claim the federal tax credit.
- Individuals applying for the tax credit must have sufficient tax liability.
- You’ve financed or outright purchased your solar system or energy storage.
- The solar or energy storage system must be new. Used solar equipment is not eligible.
How to Claim Tax Credits
The process to claim the federal solar tax credit is easy. You must file Form 5695 when you file your federal income taxes. The form will ask you to provide information about your solar PV system, including the cost of the system, the date it was installed, and the name of your solar installer.
The credit can only be claimed for up to the amount you owe in federal income tax liability. Your tax liability will then be reduced by that amount, offering significant cost savings for upgrading your home to a renewable energy source that will save you even more.
