• 866-787-6527

  • Take Advantage of the Federal Solar Tax Credit in San Diego

    What is the Federal Solar Tax Credit?

    The Federal Solar Tax Credit, or Solar Investment Tax Credit (ITC), is an important piece of legislation set forth by the US government to support the growth of solar.  The ITC allows homeowners going solar to apply to receive 30% of the cost of their solar system credited to their taxes.  This legislation has spurred unprecedented growth of the solar industry in the US since its inception in 2005. 

    How does it work?

    The credit can be used for homeowners who buy their solar outright, and mostly not for leases.  So, say for instance you buy a solar system for $20,000.  You could apply to receive 30% of that - $6,000 - to be taken out of what you owe on your Federal Income Taxes.  If you don’t owe that much, the credit will be transferred to the following year.

    How long does it last?

    The legislation will guarantee the 30% Tax Credit through 2019.  Then, in 2020, the credit will drop down to 26%, then to 22% in 2021.  After 2023, it will officially drop to 0.  So, in order to get the most amount of credit for their solar systems, homeowners looking to save should go solar as soon as possible. 

    How do I apply for the Federal Solar Tax Credit?

    To claim the ITC credit, homeowners must file IRS Form 5695 as part of their tax return.  The credit is calculated on the form, and the result is entered on the 1040 tax form.  The credit is then deducted from what the homeowner owes on their Federal income tax.

  • Want to learn more about the ITC?  Give us a call.  We can answer any of your questions. (866)787-6527

  • About the Author

    Michael Powers

    http://www.terrawatts.com/

    •

    Michael is one of the founding partners of Stellar Solar. In 2001, he helped launch The Home Depot’s national solar energy program which is now offering home solar through hundreds of stores in nearly a dozen states. He is a writer and marketing professional with over 30 years’ experience in the fields of energy, market intelligence and leadership training. He currently serves as treasurer and board member of Global Energy Network Institute (GENI), a San Diego-based non-governmental organization that advocates linking renewable energy resources around the world using electricity transmission.