What Homeowners Should Know About Solar Incentives
It's no secret that the U.S. is working hard to catch up and reach its renewable energy goals. But what does that mean for homeowners who also see the value in cleaner energy sources?
The federal government is offering tax incentives to homeowners who have solar systems installed in their homes. Specifically, a 26% tax credit for systems installed in 2022 and a 22% credit for systems installed in 2023. So far, the tax credit is set to expire in 2024 unless congress decides to extend it.
This is great news for homeowners who have been considering solar but just needed a tiny push to get the ball rolling, or homeowners who have already been living as sustainable as possible. But how do you know you're eligible for this credit and how do you go about claiming it?
According to the Office of Energy Efficiency and Renewable Energy, you should be eligible for the solar tax credit if your solar PV system was installed between January 1, 2006 and December 31, 2023. The system needs to be located at your primary or secondary residence, or for an off-site community solar project. Another important thing to note is that this credit can only be claimed on the "original installation" of the solar system, so it needs to be a new addition to your home.
Claiming the credit can become more complicated if the residence where the solar system is installed is also used as a home office or business, so the Office of Energy Efficiency and Renewable Energy suggests homeowners seek professional advice on their taxes to ensure they're eligible for the credit. But homeowners need to make sure they fill out and attach the IRS Form 5695 to their federal tax return to claim this solar credit. This is the Residential Energy Credits form, and instructions on how to properly fill out can be found here.
If you want the biggest return on your investment, now is the time to go solar! Head over to wattbuy.com to find a clean energy plan that's tailored to your energy needs.