It’s no secret that solar panels are more affordable and more efficient than ever before. And now, with the help of a new federal tax credit, you can save up to 30% on your solar panel purchase! With this deal, it won’t be long until all homes in America generate their own clean energy. This is an investment worth making for everyone who wants to protect themselves from skyrocketing utility bills and environmental pollution. The solar tax credit is available for homeowners just like you!
We’ll also have some great tips on how to save money with your new solar panel installation so that you don’t end up spending any more than necessary when making this investment. Join us as we explore what’s available and talk about ways to make your solar panel installation both cost-effective and easy!
What is a tax credit?
A tax credit is a dollar-for-dollar reduction in tax liability for an amount that was spent or that the taxpayer paid. Tax credits are subtracted directly from the total of tax owed and reduce a taxpayer’s liability. Tax credits are different from deductions, which can only decrease your primary tax (or income) by 2.5%.
What is the federal solar tax credit?
Every year the federal government offers a tax credit to incentivize homeowners to install solar panels on their homes. With this incentive, homeowners can save around $5,000 off the cost of installing solar panels. If you have been considering investing in renewable energy for your home and are looking for an affordable way to do it then now is the time! The tax credits are only good until December 31st so don’t wait any longer! This solar tax credit is a dollar-for-dollar reduction in the amount of solar taxes owed. For example, if you have solar panels on your home and owe $2,000 for solar taxes, with the solar panel tax credit of 30%, you will only owe $1,400 instead. If you want to know more about solar tax credits, contact the Phoenix Power team today.
Am I eligible to claim the federal solar tax credit?
Every state and even every county has unique claim requirements. If you are interested in knowing specifics, please give our team a call. With your zip code we can tell you exactly what programs are available in your area that may help you pay for solar panels. In addition, because we work with installation partners across the US, we are able to offer special discounts on your solar panels.
In the United States, solar taxes are claimed on your solar credits. Different solar panels for solar power systems may qualify for a solar tax credit. The Energy Policy Act of 2005 created solar energy investment through new solar panels and solar tax credits. These solar tax credits include: up to 26% solar panel installation cost, solar panel solar credits of 10% and solar thermal solar energy tax credits of 10%.
What’s included in the solar tax credit?
- Solar PV panels or PV cells used to power an attic fan (but not the fan itself)
- Labor costs for contractor design, installation, preparation, testing, inspection, and permit fees
- Equipment necessary for keeping your solar panels safe and compliant such as wiring, inverters, and converters
- Devices that are charged exclusively by solar panels and used to store energy
- Sales taxes on eligible expenses
Other Incentives for Installing Solar Panels
Different states and local authorities offer unique incentives for homeowners wishing to install solar panels and take advantage of opportunities like tax credits and solar panel discounts. Starting with a free consultation, our team can map out every program and incentive you are eligible for so paying for your solar panels doesn’t seem impossible. We will match you with one of our expert solar advisors who will answer all of your questions and find ways to save you money on solar panels.