Federal Solar Tax Credits & Incentives
It’s now easier to GO SOLAR! With a market value of $17 billion (seia.org), solar energy powers countless homes and has generated jobs for more than 250,000 Americans. One of the policies responsible for this growth is the Solar Investment Tax Credit (ITC). Since ITC’s passage in 2006, the solar industry grew 59%.
ITC: How Does It Work?
In simple terms, The Solar Investment Tax Credit serves as one of the pillars of stability for the solar industry. Whether you’re a business owner or a homeowner, owning a solar energy system lets you qualify for this program. With this legislation, 30% of the cost of your solar investment can be deducted from your federal taxes.
Tax Credits up
The Solar Investment Tax Credit isn’t permanent. Originally, the legislation was proposed to go on only until 2007 but with the help of solar advocates, Congress has extended the policy. Homeowners and businesses can now enjoy solar tax credits. This helps solar companies plan out innovation and investments, and help solar prices go down in the following years. Some solar installers, like Pep Solar, even let you get started on solar energy at little to no cost. If you’re thinking about investing in solar, now would be the best time. PEP Solar offers 0% down to install on approved credit.
Claiming Your Solar Tax Credits
One of the advantages of owning your own solar panel system as opposed to leasing is you’re eligible for tax credits. After you have determined that you qualify for the Federal ITC, here are the steps to claim the tax credit:
- Step 1: Complete the IRS Form 5695 to validate your qualification
- Step 2: Fill up your Individual Income Tax Return form 1040 and indicate your renewable energy credit information
Be sure to contact your tax adviser for more information on income tax returns.
Arizona Solar Tax Credit & Property Tax Exemptions
Arizona is one of the best solar states, not just because of the abundance of sunlight, but also because of the state’s legislation. The Arizona Solar Tax Credit lets homeowners enjoy a 25% tax credit up to $1,000 off their personal income tax. The Solar Equipment Sales Tax Exemption means you don’t have to pay sales taxes upon purchase of your solar energy system. You can install solar air conditioning units for heating and cooling in your home and add value to it, without worrying about increased property tax. There are no additional property taxes on the value added to your home after investing in solar, under The Energy Equipment Property Tax Exemption.
Leverage the Solar Tax Credit to strategically invest in renewable energy for your home or business. Take advantage of this incentive to install solar panels and reduce your tax liability while contributing to a sustainable future. With the Solar Tax Credit, you can lower upfront costs and enjoy long-term savings on energy bills. Make the smart choice today and embrace clean, renewable energy solutions that benefit both your finances and the environment.
PEP Solar has been helping the Arizona community achieve a sustainable future since 1981. As experienced solar industry workers, we approach each and every project with Pride, Excellence, and Performance.
Interested in solar energy and want to know more about Solar Tax Credits and Incentives? Talk to the experts at PEP Solar, and we’ll give you a free demonstration.
Want to lower your utility bills? Save up by harnessing the power of the sun. PEP Solar offers 0% on solar installations upon approved credit.
Talk to us, and we’ll give you a free demonstration.
Contact us today: (623) 264-6888 or fill out the following form for more info.
PEP SOLAR
2025 W Deer Valley Rd | Suite 104
Phoenix, AZ 85027
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