How to Claim Your 30% Solar Tax Credit
If you are thinking about going solar or adding panels to your home or commercial solar system, there has never been a better time!
Passed in summer 2022, the Inflation Reduction Act act includes thousands of dollars in tax credits and rebates for people who install solar panels.
As you can see, there are plenty of benefits to claiming your residential ITC—but applying for the credit requires research and planning. Claiming your federal tax credit boils down to a few simple steps:
1. Determine if you’re eligible for the credit
It’s important to ensure you have enough tax appetite to use the federal tax credit against your total taxes. Consult with your tax advisor to determine if the federal ITC can apply to you.
2. Complete IRS Form 5695
This form can be found at IRS.gov. It will validate your qualification for the credit..
3. Add renewable energy credit information to your typical form 1040
Be sure to mention your renewable energy credit into your regular tax form.
4. Compare your solar quotes to maximize savings
Getting at least 3 total solar quotes is recommended to ensure you're getting the best deal for your solar energy needs.
Am I eligible for the solar tax credit?
- You’ll need to own your solar energy system, rather than leasing it. Leasing a solar energy system means that the third-party owner gets the solar tax credit.
- You may still be eligible even if the solar energy system is not your primary residence, just as long as you own the property and live in it for a part of the year.
- If your federal tax liability is lower than your ITC savings, you can still carry over remaining credits to the following year!
Don’t miss out on this opportunity! Connect with our team and your tax advisor to learn more about claiming your federal solar tax credit. You could qualify for up to $10,000-plus in tax breaks and rebates for clean energy technology. Click the "Free Solar Proposal" button at the top of this page and fill out the form to get started with your local solar experts at A.M. Sun Solar.