I Want a 30% Tax Credit
Updated: Dec 9, 2018
Many people are not exactly sure how to claim their 30% Tax Credit on the cost of their Solar Install Cost. First off, it is a Tax Credit not a Rebate. What does that mean? First off, a Tax Rebate works like a rebate you would get from a coupon when you go grocery shopping. You mail in your rebate form with necessary documents and they mail you a check for the rebate amount. A Tax Credit can be applied to the amount of tax that you are required to pay in taxes at the end of the year based on your income. Now if you have not paid the taxes during the year and owe the taxes, the Tax Credit will lower the amount owed. If you paid the taxes in your paychecks or prepayments and the amount of your Tax Credit can be applied so you will receive more in tax return. So if you typically receive money back from your tax return, you will get even more money back thanks to your Solar Install. So it helps in two ways; if you owe taxes, you will owe less, if you are getting taxes back you can get more! What will you do with our extra money?
Your Residential Energy Tax Credit is IRS Form 5695. You will file this with our yearly tax return. You have up to 5 years to continue to collect your Credit if you did not receive it all in year one.
Now here is my disclaimer, I AM NOT A TAX PROFESSIONAL, seek advice from a professional.