Homeowners can save significant money by installing a solar power plant. Solar installers have the opportunity to receive 26% tax credits from the federal, state, and county governments. These credits can be used towards the system’s payback. The IRS may require you to fill out specific forms when applying for these credits. These are the easiest ways to handle the paperwork.
Federal tax credits can allow you to take 26% off your federal taxes for the year that you installed solar panels. If you have a residential or commercial building with solar panels installed in 2020, this applies. The deal is available to you as long as the system was built within the current calendar year. The credit available for 2021 is only 10%. You will need to be able to generate electricity from your solar panels before you apply. Also, the panels must be yours and you cannot lease them. Finally, complete the IRS Form 5695 when you do your taxes.
It can be challenging to complete one of these forms if you rent a property. You can only claim the residential solar credit for the portion of your residence you use. You can get 50% off the tax credit if you live in a house with only one tenant. You can split the cost of solar panels between the properties you own and the ones you rent.
A proper application is required for statewide incentives. A local solar company is the best way to handle your state-wide application. They will help you understand the requirements and provide information about how to qualify for your residential or commercial system.
This post was written by Daniel Massaad, owner and expert solar technician at Energy Solutions Direct! ESD is one of the premier Tampa solar companies! Our licensed and certified contractors are masters of their craft; with years of experience servicing the great Tampa Bay area and beyond, the choice is simple. ESD excels at offering you the best in solar value!
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