Solar Panel Credits 2015

Homeowners solar companies and industry advocates alike were given a big christmas gift in 2015 when congress approved the 2016 federal spending bill and extended the solar panel tax credit.

Solar panel credits 2015. The december 18 bill contained a 5 year solar tax credit extension which makes solar energy more affordable for all americans. Check this post for the most up to date information for 2020. The federal solar tax credit is a huge incentive that can reduce project costs by up to 26. If you re considering solar 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 deduction equal to 26 of the total cost of a solar energy system.

5 minutes last updated on august 27 2020. You calculate the credit on the form and then enter the result on your 1040. If you end up with a bigger credit than you have income tax due a 3 000 credit on a 2 500 tax bill for instance you can t use the credit to get money back from the irs. All of the financial benefits listed below go to the owner of the solar panel system.

Filing requirements for solar credits. If you buy your system in cash or with a solar loan that means you also get the tax credits rebates and srecs for the system however if you lease your system the third party owner will receive all of the solar incentives. To claim the credit you must file irs form 5695 as part of your tax return. The residential renewable energy tax credit as the irs calls it can be an attractive way to save on the significant cost of installing solar panels or roofing an average sized residential solar.