Federal Tax Credits
Save Money on Taxes When You Convert to Solar Power
Save on your taxes with the Federal Solar Investment Tax Credit (ITC). It will reduce the cost of converting to solar power by deducting 30% from your federal taxes!
This tax credit can help you decrease the cost of your system. A tax credit will reduce your tax liability (different than a tax deduction, which reduces the amount of your taxable income).
If you take advantage of the Solar Tax Credit, you will save on your tax bill and possibly get a larger refund the year you go solar.
The Future of ITC
The federal tax credit is currently 30%. You must pay taxes to claim the credit, since Federal tax credits are non-refundable.
Use form 5695 to calculate and claim your federal investment tax credit. This form is also used to carry over the credit from a previous year. The percentage from your year of interconnection remains the same for subsequent tax forms each year until the credit is fully redeemed.
