Applying for the Solar Tax Credit doesn’t need to be hard!
If you’re considering a new solar system, you’ve probably heard about the federal solar tax credit, also known as the Investment Tax Credit (ITC). The Federal ITC makes solar more affordable for homeowners and businesses by granting a dollar-for-dollar tax reduction equal to 26% of the total cost of a solar energy system.
The average national gross cost of installing a solar panel system in 2021 is $16,860. At that price, the solar tax credit can reduce your federal tax burden by $4,618 – and that’s just one of the many rebates and incentives that can reduce the cost of solar for homeowners.
Determine if you are eligible
Make sure you pay federal income tax in order to be able to use the federal ITC against your total taxes.
Complete IRS Form 5695
This form validates your qualification for renewable energy credits, and can be obtained online. Click HERE to view Form 5695.
Add your renewable energy credit information to your typical Form 1040
Loop your renewable energy credit information into your regular tax form.
It’s that easy!