Solar Tax Credits

 

The solar investment tax credit (ITC) offers homeowners and commercial property owners incentives to install solar and move to renewable energy.

The solar panel tax credit allows you to claim up to 30%, depending on the year you install, of the total cost of your solar system as a credit on your federal tax return. If you have questions, we’ll help you out along the way.

Solar PV systems installed in 2020 and 2021 are eligible for a 26% tax credit. In August 2022, Congress passed an extension of the ITC, raising it to 30% for the installation of which was between 2022-2032. (Systems installed on or before December 31, 2019 were also eligible for a 30% tax credit.) It will decrease to 26% for systems installed in 2033 and to 22% for systems installed in 2034. The tax credit expires starting in 2035 unless Congress renews it.

There is no maximum amount that can be claimed.

How does it work?

  • We’ll provide you with the receipts you need to maximize your solar tax credits. You’ll want to show physical proof to maximize your solar tax credit savings.

  • Place your solar system in service. To claim your federal solar tax credit, you must place your solar system in service on or after January 1, 2006, and on or before December 31, 2034.

  • Residential: Fill out Form 5695. For residential renewable energy systems, use IRS Tax Form 5695 to report your expenses. You can use this form for any residence, not just your primary one. Learn more about residential energy credits.

  • Commercial: Fill out Form 3468. For commercial renewable energy systems, use IRS Tax Form 3468 to report your expenses.

  • There is no ceiling or cap on the solar tax credit, and there is no maximum credit for systems placed in service after 2008.

  • Carry over your tax credit. If the federal tax credit exceeds your tax liability, you may carry over the excess amount the following taxable year.