Did you know that an estimated 13 percent of homes in the United States of America are expected to use solar power by the year 2030? One of the biggest incentives for getting solar panels for your home is the solar panel tax credits that come with the purchase. While tax credits for solar sound nice, there are certain criteria that you’ll need to meet in order to qualify.
The first step towards finding out if you’re someone that qualifies for the federal tax credits for solar is doing your research. The good news is that you’re in the right place to gain the information that you seek about these tax credits and the qualifications that you need to meet.
Keep reading this article to learn more about the solar panel tax credits today!
What Are Solar Panel Tax Credits?
Tax credits are sums of money that you get back from the federal government when tax season rolls around. If you owe $3,000 to the IRS for your taxes and you have a $1,000 tax credit then you will only pay $2,000 to the government. You can qualify for the solar panel tax credit if you’ve purchased solar panels and a solar energy system for your home.
You’ll get a percentage back from the cost of your solar system and its installation. Two of the main qualifications that you’ll need to meet is that your system needs to be installed during that tax season and it needs to generate electricity for a home in the United States.
This program for federal tax credits got extended and runs through all of the year 2022 at 26 percent, and into the year 2023 at 22 percent. If there was ever a good time to invest in getting a solar energy system and own your solar for your home, it is right now.
Eligibility Criteria
There are certain criteria that you’ll need to meet if you want to become eligible for the solar panel tax credits. Your solar system needs to have been installed between January 1st of 2006 and December 31st of 2023 in order to be eligible for the solar panel tax credit.
Your solar energy system also needs to be installed on either your primary or your secondary address to qualify. Another thing to consider is that you’ll need to own your solar system rather than lease it. If you lease your solar panels then you won’t qualify for the tax credits.
The credit also won’t apply if your solar energy system isn’t new and has been used in the past. Keep that in mind when you start shopping for solar energy systems for your home’s needs.
Get Your Solar Panel Tax Credits Today
A massive benefit of getting solar energy for your home is the difference it makes within the environment since you’re using sustainable energy. It also has a big impact on your bank account thanks to the solar panel tax credits that you’ll qualify for. Make sure that your solar panels are installed on your primary or secondary residence in order to qualify.
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