The IRS offers all homeowner’s and commercial building owners who switch to solar in 2022 a 26% Investment Tax Credit. That is, 26% of the total system price regardless of how the project is funded weather it be a cash outlay or a $0 down financing program.
Is this a Credit or a Write off?
The Federal Solar Tax Credit is a dollar-for-dollar physical return on your tax dollars. This is a in fact a full credit on your income taxes, not just a write off. Homeowners with no taxable income will not be eligible to receive this credit.
Is the Solar Tax Credit a onetime shot, or do I receive a Tax Credit every year?
The 26% Solar Investment Tax Credit is a one time offer. However, it may take some homeowners more than one tax cycle to receive the full credit. We suggest you refer to your accountant to determine your tax liability and how much you will receive each year. For example, if your Solar ITC is $8,000, and you only have $4,000 tax liability it would take you two tax cycles to receive the full Tax Credit.
How long will the Solar Investment Tax Credit last?
The Federal ITC for Solar will remain at 26% through the end of 2022 for all homeowners and businesses owners that switch to Solar. The ITC steps down to 22% beginning 2023, and 0% for Residential Solar Systems, and 10% for Commercial & Utility-Scale Solar Systems in 2024. You can find more information regarding this Solar Incentive on the Solar Energy Industries Association’s website at seia.org.
How do I know what forms to fill out?
The Solar Tax form necessary to submit to the IRS is known as an F5695 “Residential Energy Credits” tax form. Integrity Solar Solutions will supply all customers with this form along with the associated “Instructions for Form 5695.”
Get a full breakdown of the entire process including solar installation costs, tree shade analysis and explanation of all the tax incentives benefits for your home or business by calling 845-584-3100 and ask for John.