A1A Solar explains the investment tax credit
It’s tax season, which always brings a lot of questions about claiming solar on taxes. Remember, we’re solar people, not tax people, so it’s always best to consult a tax professional before filing your tax credit.
Here’s an overview of what the solar tax credit is and how to file for it:
What is the ITC?
According to TurboTax, “Installing alternative energy equipment in your home can qualify you for a credit equal to 30 percent of your total cost. The credit is available through the end of 2019. After that, the percentage steps down each year and then stops at the end of 2021.” The equipment that qualifies for a tax credit includes solar-powered units that generate electricity or heat water.
You must own your solar-powered system rather than lease it. You’re also eligible to claim the solar tax credit even if the solar energy system is not on your primary residence – as long as you own the property and live in it for part of the year.
- First, determine if you are eligible for the federal ITC.
- Complete IRS Form 5965 to validate your qualification for renewable energy credits.
- Add your renewable energy credit information to your typical Form 1040.
With current solar incentives, the initial solar investment cost is drastically reduced, accelerating return on investment and payback scenarios. These generous local/state rebates and federal tax credits make it an easier decision to invest in solar. If you haven’t gone solar yet, contact us to discuss the benefits and incentives.
About A1A Solar
A1A Solar began in 2010, and today, it’s the No. 1 solar installer in Florida. The company is a certified NABCEP solar installer and a licensed state electrical contractor for thermal and technical sales. A1A Solar earned the title Veteran-Owned Business of the Year in 2016 as well as Best Place to Work in Jacksonville 2016. To learn more, visit our website or contact us at 904-657-8775 today.