If you are one of those homeowners who have been considering installing solar panels in Florida, this might be your cue to act.
Presently, you can reduce the cost of installing solar energy systems in your residential buildings by 26% with the new solar panel tax credit scheme. This implies that you can save anywhere from $7000 – $10,000 on your next installation.
Federal Tax Credit for solar panels: all you need to know
The Federal Solar investment tax credit was created following the Energy Policy Act of 2005 which provided numerous incentives to support power production. This solar tax credit program was scheduled to last for just two years.
However, this scheme was massively successful, thus impacting the economy positively. It was this success that constantly led to the postponement of the expiration date of the scheme, up until 2020 when the date was again moved forward by two years with more solar incentives.
What are the benefits of setting up solar panels?
- Contribute to the environmental change: The cleaner your energy is, the more the chances of prevalence against fossil fuel damages. In addition to creating a healthier environment, you are also aiding to create more employment opportunities in the clean energy sector.
- Get rid of unnecessary energy bills:
- Partake in the solar rebates, including the recent Investment Tax Credit (ITC).
How the Solar Tax Credit works
The amazing thing here is that you only have to buy and use a solar energy system, and you qualify for the solar federal tax credit.
In the case where you cannot collect all bonuses in a year, it is possible to roll over the remainder for another year. The scheme is only active for owners of a sun-powered system.
With a leased system, claiming the solar tax credit will be impossible.
How much could a solar tax credit save?
The ITC is a dollar-to-dollar reduction, therefore the amount saved in dollars depends on the cost of the project. An estimate from the recent SEIA report will help determine the savings at each project scale.
Therefore, a homeowner that bought a system in 2021 for $30,500 is entitled to credits of $7930. Once you are eligible, and you know how to file solar tax credit, you can enjoy this benefit.
Requirements to use the federal tax credit
To get this tax credit for solar power, you must meet some criteria that have been put in place to regulate the claiming of this benefit. They include;
- It must be fixed in your main or secondary home
- It must have been fully purchased and owned by you.
- It must have been installed before 31st December 2023.
Property types include; Mobile homes, houseboats, cooperative homes, condominiums, Family homes, etc.
Alt text for the image: Federal solar tax credit incentives
Why should you go solar in 2022 if you can?
A lot of rebates are going into the sun-power industry now, so you can tell that the government is very interested in this sector.
If you can afford to, then you should make that switch from fossil fuels to the sun-power world. In other words, it is a win-win situation. Save with solar energy today.
How do you get the federal solar tax credit in 2022?
There is a procedure on how to apply for the solar tax credit.
By completing the IRS Form 5695, you can claim your residential solar tax credits. Here is how to make the calculation:
- Derive the total cost of your systems
- Find your residency type
- Include the rebates from your ITF
- Get your non-refundable tax bonus.
After completing the calculation, a tax worker can guide you on how to claim your solar tax credit.
Solar energy is the future, and having a trustworthy installation company like PPM Solar is a power move.
Our experts are always available to handle all forms of installations. We have a track record of providing only high-quality service within and around the state.
Contact us today to give you easy commercial and residential solar power in Florida and start reaping massive benefits from the government.