The Solar Investment Tax Credit (ITC) offers a 30% tax credit to support the growth of solar energy. This incentive can be applied to both residential and commercial projects in the U.S.
The Solar Investment Tax Credit (ITC) | SEIA indicates: “The Section 48 commercial credit can be applied to both customer-sited commercial solar systems and large-scale utility solar farms. The rate is effectively at 30% until Treasury issues guidance on new wage and apprenticeship standards. Two months later, the rate will be at 6%, with an additional 24% (for a total of 30%) available for meeting these new labor standards.”
Additional credits may also be available through state taxes. See which incentives are available in your state on the Database of State Incentives for Renewables & Efficiency.
How to Claim Your Solar Investment Tax Credit
Step
Who Qualifies
To qualify for a solar tax credit, you must own a solar-powered system.
Step
Certify Eligibility
If you are eligible, fill a 5965 IRS form to certify that you qualify for renewable energy credits.
Step
Add Credit Information
Add your renewable energy credit information to a 1040 form in order to complete the process.
Remember to check the State Incentives for Renewables & Efficiency to see if you can benefit from additional tax credits.
Please consult a tax professional if you have any additional questions.
Solar Power on the Rise
Since the Solar Investment Tax Credit was enacted in 2006, the solar industry has grown by over 200 times, with an average annual growth of 33% over the last decade.
With ever-increasing fuel prices, as well as health and environmental concerns surrounding emissions, solar-powered systems are becoming a necessary alternative.
They also represent significant savings. These autonomous systems offer a similar performance to diesel-powered ones while saving companies thousands of dollars on gas and labor every year.
With the use of solar power on the rise around the globe, it is expected to keep gaining ground for years to come, offering an efficient, clean, and more cost-efficient power alternative.
