Legal Disclaimer: At Everlight Solar, we are solar experts, not tax experts! Tax codes are complicated, so consult your tax advisor before deciding what is best for you. If you have questions regarding your Federal Investment Tax Credit or IRS Form 5695, do not refer questions to your Energy Consultant or Everlight Solar. Rather, you should discuss your situation with your CPA or other qualified tax advisors. Everlight Solar is not responsible for or liable for any errors or omissions in regards to your personal tax and finance situation or obligations. The following is for informational purposes only, and should not be considered instructions or legal advice.
If you have been researching solar, you have most likely come across the term “tax credit.” A tax credit is a dollar-for-dollar reduction in the amount of income tax you would otherwise owe. The federal government’s Investment Tax Credit (ITC) is the main tax credit associated with solar. This tax credit, also known as the Federal Solar Tax Credit, helps homeowners and businesses go solar at a more affordable rate.
Am I eligible to claim this solar tax credit?
To be eligible for this tax credit, you need to meet all the following criteria:
- Your solar system was installed between January 1, 2006, and December 31, 2023.
- For residential solar, the solar system is located at your primary or secondary residence in the United States.
- You own the solar system (i.e., you purchased it with cash or through financing, but you are neither leasing nor are in an arrangement to purchase electricity generated by a system you do not own).
- The solar system is new or being used for the first time. The credit can only be claimed on the “original installation” of the solar equipment.
To learn more about the federal solar tax credit, click here: https://everlightsolar.com/how-to-claim-the-solar-tax-credit-itc/