Solar Tax Credits and Rebates
As a homeowner in Florida, you’re in a prime location to harness the abundant power of Solar Energy Savings. The Solar Investment Tax Credit (ITC), can make this switch to renewable energy even more appealing.
The Solar Tax Credit is a federal initiative established in 2005 that allows homeowners to deduct a portion of their solar PV installation costs from their federal taxes. This policy is designed to encourage the growth of renewable energy across the country. Here’s a closer look at what this means for Florida homeowners, based on information provided by the U.S. Department of Energy:
In addition to drastically reducing your electric bill, the federal government will help you pay for it! You can receive up to 30% in fact with a Solar PV System.
Eligibility for the Tax Credit:
To be eligible for the Solar Tax Credit, you must own your home and the solar PV system. Your solar PV system needs to have been installed between January 1, 2017, and December 31, 2034. If you’re leasing your solar system, you’re not eligible for this tax credit. Furthermore, the system must be new and installed on your primary residence.
Claiming Your Solar Energy Savings:
Claiming your Solar Energy Savings Tax Credit involves a few steps. You must first verify your eligibility, then calculate the credit based on the current percentage of your solar PV system’s cost. The next step is to fill out IRS Form 5695, ‘Residential Energy Credits,’ and include the result when you file your federal tax return.
Remember, while this guide provides a comprehensive overview of the Solar Tax Credit, you should always consult with a tax professional to understand how this tax credit applies to your specific circumstances. Harnessing Florida’s sunshine for renewable energy not only benefits your wallet but also contributes to a more sustainable future.
Here is the link to download form 5695: http://www.irs.gov/pub/irs-pdf/f5695.
