The Solar Credit Resurfaces with a 30% Revival

The Solar Credit Resurfaces with a 30% Revival

The Inflation Reduction Act (IRA) has passed, and with it the solar Investment Tax Credit (ITC) has been increased from 26% to 30%, effective immediately, and has been extended through 2032.

The U.S. Treasury allows Energy Tax Credits for home or business owner incomes. Taxpayers are allowed one tax credit equal to 30 percent of the qualified investment in solar electric panels. Solar tax credits do not apply to solar heating for pools or hot tubs. Always consult your tax adviser, and take advantage of these solar tax credits on your next income tax return.

How to get Residential Energy Credits

A taxpayer may claim a credit of 30% of qualified expenditures for a system that serves a dwelling located in the United States and used as a residence by the taxpayer. Expenditures with respect to the equipment and labor are treated as made when the installation is completed. If the installation is on a new home, the “placed in service” date is the date of occupancy by the homeowner.

  • The tax credit covers all costs, including plans, permits, site preparation, equipment, wiring, labor and installation. Components such as roof decking or rafters that serve only a roofing or structural function do not qualify for the credit.
  • There is no maximum credit amount for systems.
  • If the federal tax credit exceeds the tax liability, the excess amount may be carried forward to the succeeding taxable year.
  • The home served by the system does not have to be the taxpayer’s principal residence.
  • 30% for systems placed in service through 2032

To get the 30% Solar Credit, download IRS form 5695 for Residential Energy Credits

Learn about Solar Power In Your State

Learn more about the latest information about solar rebates, renewable energy tax credits, and other incentives available for solar power systems in your state to save even more. Many states offer cash solar rebates and other incentives like sales or property tax exemptions when you install solar panels. State rebates typically range from 10% to 30% of your total installation cost. Read more on our Solar Power In Your State page.

Go Solar with a trusted company

SunWatts has been helping families and businesses go solar since 2007. We help you build a solar power system designed to meet your specific needs and budget. Choose among the top brands for your materials; then, we work with you to get everything up and running.

Our ready-made solar kits can be customized with popular options like battery storage, professional installation, ground mounting, or EV charging. It’s all just a click away.

Alone among solar providers, we offer not only the most extensive selection of components at the best possible prices but a choice of installation methods. You can DIY (do-it-yourself), or hire your own labor, or we can provide bumper-to-bumper installation.

Regardless of how you choose to proceed, we promise going solar with SunWatts will be easier and more rewarding with a far greater return on investment than you ever imagined. Contact SunWatts today for a free solar evaluation and to find the right solar kit for your project.

Oct 21st 2022

90 thoughts on “The Solar Credit Resurfaces with a 30% Revival”

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