solar panels

How does the tax credit for solar panels work?

For residential projects:

How much:
30% of the full project cost (including hardware and labor costs), with no upper limit.
Timing:
Claim the credit after interconnection of the solar system in a home you own and use as a residence (no rentals, but second homes qualify).
Details:
Photovoltaic systems must provide electricity for the residence, and must meet applicable fire and electrical code requirement.
How to apply:
For residential systems, claim the tax credit on your personal taxes: File Tax Form 5695 with your tax return(Residential Energy Credit) and IRS form 3468 (Investment Credit)

Note:

  • This is the Federal Tax credit that is available to everybody in the U.S.A. Local incentives are not included in this bog post. For local incentives, consult the following website Desire: http://www.dsireusa.org/
  • The Tax Credit decreases to 26% for tax year 2020 and drops to 22% for tax year 2021.

 

 For Commercial projects:

Commercial projects tend to be much larger and tax implications are usually more complex.

We work with the renowned accounting and consulting firm Baker Tilly to provide you answers to complex situations. We’re in direct contact with their sustainability expert.

 

Contact us if you have specific questions. We’re not tax expert, but have experience with this and are happy to help you out with what we know.

Contact us

Related Post

0 Comments

leave a comment