Solar Tax Credits and Incentives
Our government is encouraging everybody to go solar! By installing a solar energy system you can benefit from a range of Solar Tax Credits and Incentives that make the process much easier. Going solar will not only benefit you financially because of these incentives from your local government but you will also enjoy vastly reduced energy bills! Here at Amerite Solar Company, we are pleased to offer the people of Westminster, CO, absolute support to achieve the best financial benefits possible from your solar panels!
What is a Solar Tax Credit?
Also known as the Federal Residential Solar Energy Tax Credit, this incentive has been created to encourage more of our communities to go solar. It means that you can claim a percentage of the cost of your solar PV system on your federal income taxes. Essentially you can write off a proportion of the installation costs from the tax you are paying on your income. The basic guidelines say that the installation of your system must have been completed within the current tax year and the percentage that you receive will depend on which tax year that is. For systems installed in 2022-2023, you can benefit from a 30% tax credit. This will decrease over the years, dropping to 26% for systems installed in 2033, and 22% by 2034. Get this process in place now and benefit from this incentive!
Who is Eligible for it?
The criteria to benefit from this tax credit are clear. If your solar PV system was installed between January 1st, 2017, and December 31st, 2034, you are eligible. It must also be located in a residence within the United States and have been purchased new; it is only applicable for the ‘original installation’. Finally, you must own the solar PV system, having purchased it through financing or cash. If you are leasing the system or paying a solar company to purchase the electricity you are not included. Alternatively, you can receive the tax credit if you have purchased an interest in an off-site community solar project that does not exceed your home’s energy consumption.
What is Covered?
These tax credits and incentives are useful for all aspects of solar system installation. You will receive support based on the cost of the Solar PV panels or cells themselves, energy storage devices such as a battery, Balance-of-system equipment like any wiring, mounting equipment, and inverters, contractor labor for every part of the process, inspection costs, permitting fees, developer fees, and sales taxes on certain expenses.
Interactions With Other Benefits You May Receive
If you are already receiving other tax incentives and credits, a solar panel system claim may impact that. As your local expert solar company, we are here to help you achieve the ideal solution for your home, so can assist you to deal with this. Circumstances that may be affected include taxable income rates, energy rebates, and utility subsidies. Our team will be glad to go through which option is the most beneficial for you.