As the largest piece of legislation geared toward improving and protecting US energy security, the Energy Policy Act of 2005 has led to the rapid growth of the solar industry. In addition to benefiting homeowners by helping them save money on energy costs, solar panels help protect the environment.
If you are looking to install solar panels on your home, you may be wondering about the federal solar investment tax credit. Below are a few things you need to know about how you can take advantage of the tax credit today.
Although solar panel tax credits are set to last through the year 2023, the full 30% credit is only available through the end of 2019. That means if you’re interested in installing solar panels anytime in the near future, now is the time to act.
To take advantage of the tax credits, you’ll need to make sure your solar panels:
- Are certified and rated by the Solar Rating and Certification Corporation or other similar organization
- Get at least half of their energy supply from photovoltaic energy
- Meet all applicable fire and electrical safety codes
- Are in use at the time you file your tax paperwork
Complete the Paperwork
When you file your 1040 tax form with the IRS, you’ll need to include Form 5695 to apply for credits in the upcoming tax year. The form and instructions are available for download on the IRSwebsite.
Or Let Us Do It All For You!
If you’re thinking about having solar panels installed on your home or business, 2019 is the right time. While you can receive tax credits through 2023, there will never be another opportunity to realize the full 30% credit after the end of 2019.
For more information about the federal solar tax credit program or to discuss your solar installation options, please contact us.