How To Claim Solar Tax Incentives Before They End In 2019
The advantages and benefits provided by solar energy are not limited to protecting the environment only. In fact, various economic advantages and incentives come along with it. Solar panel energy systems replace expensive utility rates. Homeowners can now easily control their electricity costs by switching to solar.
The Federal Income Tax Credit is also a part of this system! You must understand the basics of the solar investment tax credit and learn how you can qualify and claim your tax incentives when you make the switch to solar energy.
Since the best incentives are ending by the end of the year 2019, you should make up your mind as soon as possible and enjoy a tax credit of up to 30% of the total amount of your solar panel installation; a bouquet of thanks to the federal tax credit policy!
So what really is the Solar Investment Tax Credit?
You can always claim your federal solar investment tax credit (ITC) for up to 30% of the total cost of your solar panel system on your federal incomes taxes. The year in which you install your solar panels is the year you can relish the financial benefits of the tax credit. To make it easier for you to understand, the tax credit you collect from your solar panels is the amount reduced from your federal incomes tax and the best part is, there are no limitations to how much tax credit you receive! Even though the tax credit remains 30% throughout the year 2019, the percentage will drop in subsequent years. In 2020 it will drop to 26%, then to 22% in 2021 and in 2022, it has been announced that only a tax credit of 10% will be given to commercial solar arrays! Unfortunately, by 2022 solar’s residential tax credits will expire.
How To Ensure Your Eligibility?
You should be eligible for the federal tax credit if you install a solar panel system between January 1st and December 31st, in the same year as your proposed tax year. It is necessary for you to own the solar array system in order for you to claim the federal tax credit. It is not possible for you to receive a tax credit if your solar panel system is leased. Also, if you are unable to use your full tax credit in a given tax year, you can carry any unused portion of your tax credit forward for use in future tax years until you have completely used it.
How To Claim Your Solar Credit?
When you file your federal taxes at the end of the year, you can claim your solar panel array investment tax credit. All you have to do is let your tax professional know that you’ve had a solar energy system installed and your full cost of the system, including all related labor and materials.. Your tax professional will complete the necessary tax forms to file for your investment tax credit. In case you file your own taxes and want to file for your solar tax credit, you should follow the IRS’ instructions to complete IRS form 5695 for nonbusiness energy property credit provided on the IRS website listed here: https://www.irs.gov/forms-pubs/about-form-5695.
Just for a quick reminder; you are running short on time to install a solar panel system and to enjoy the benefit of earning a tax credit up to 30% by the end of 2019! In order to prevent you from missing out on this amazing experience, we have decided to offer you a free of cost solar consultation with a professional solar expert! So without wasting any further time, quickly switch to solar energy systems and enjoy receiving your tax credit.