In addition to the free electricity, one of the big cost savings associated with solar panel systems is a federal tax credit. This money can help offset some of the price of installing your solar panels. However, it is only available if you take the time to ask for it. This guide will explain what the solar tax credit is and show you how to get it.
Understand What Credit You Need to Claim
The first step is figuring out just what tax credit you get for installing a solar panel system. The main one is called the Federal Solar Tax Credit. This credit can be claimed in the same year you finish installing your panels. It allows a credit for a certain percentage of your cost for installing solar panels. The government plans to phase out this credit, so the exact percentage slowly goes down for each year. The official form used for this credit is IRS form 5695.
Keep Track of Your Expenses
Since the tax credit you get is based on the cost of installing panels, you need to keep track of all expenses. Things you can include in your calculations include the cost of equipment, installation, electrician fees, permit fees and shipping. Keep your receipts for all these purchases in case you get audited.
Make Your Claim
Once you are ready to make your claim, all you need to do is fill out form 5695 with the appropriate information. Then you can add the credit information to your 1040 form or other tax forms to see what sort of tax break or refund you are eligible for. If you are uncomfortable doing this yourself, any tax specialist can help.
GVEC Solar Services loves to help customers save money on solar panel installations. That’s why we’ll help you figure out all qualifying expenses. Our other services include solar panel repairs, battery storage solutions, electrician services and more. Give us a call today at 855.898.8807 to learn how we can help streamline your energy needs. Our offices are in Gonzales, Schertz, Seguin, La Vernia and Cuero.