It’s no secret that solar can save big when it comes to energy bills, but there are a few ways to save even bigger in Arizona. Rebates, tax credits, and deductions provide extra benefits on top of all the other savings a solar system can bring. If you're considering solar for your home or business, don’t miss out on the federal Solar Investment Tax credit (ITC).
Taxes can be complicated, but the ITC is pretty straight forward. This federal tax credit is a great way to get extra savings out of your solar panels. However, to take full advantage of this credit, you have to act fast – you can only receive the full 30 percent credit if your solar energy system is installed by December 31, 2019.
What is the solar tax credit?
The ITC has been a vital component in the success of the solar market in the United States, contributing a generous 1,600 percent growth to annual solar panel installations since it was implemented. The ITC lets home and business owners subtract 30 percent of the cost of installing their solar energy system from their federal taxes. The best part? There is no cap on the value of the credit. The credit is available federally and can be applied to anyone who owns their solar panels. Click here for more information about important dates and installment deadlines surrounding the ITC.
Step by Step Guide
The process is fairly simple. The form is understandable and should not consume much time, so make sure to take advantage of this tax credit.
b. Insert any additional energy eligible additions on Line 2 through Line 4.
c. Add all costs up and insert total to Line 5.
d. Multiply Line 5 by 30 percent to get the total for your Investment Tax Credit.
3. Add your ITC information to your 1040.
Contact a tax expert for any questions regarding lines 2 through 4, or other tax-related questions. Information from Line 1 can be obtained from your solar provider if you don’t already know the cost of the panels after all rebates have been deducted.
The ITC was implemented in 2005 and has been a long-standing successful tax policy that is helping to create a powerful solar energy industry. If you are interested in installing your solar system soon to take full advantage of the ITC, contact SunHarvest today and start saving tomorrow!
Click here to learn about even more credits and exemptions available to Arizona’s solar customers!