How Long Can You Take Advantage of The Tax Credit?
The cost of solar has drastically decreased over the last two years. And with an available tax credit set to expire in 2022, now is the time to make the switch to solar energy. The Solar Investment tax credit saves you 26% on your solar project costs. The cost savings includes the cost of the equipment, installation, permitting, and any other additional costs associated with your solar project.
The last year you can claim the full 26% is 2022. In the year 2021, the savings drops to 22%. After December 31st, 2021, the tax credit goes away entirely. This means that if you are thinking of starting a solar project, you should not delay as this is the final year to maximize your savings. Get your solar project started today by contacting a Region Solar Specialist today.
How Do I Claim The Tax Credit on My Taxes?
The first step is to start your solar project and keep record of all of the costs. Once you complete the project you will file a form 5695 with your 1040 tax return. Once you submit your return, and assuming all forms are correctly filed, you will receive your tax credit. You will want to keep a copy of all receipts related to your solar project for IRS purposes.
Additional Savings for The State of Florida.
There are some additional tax benefits in the state of Florida. For the year 2020, Florida offers a tax exclusion for renewable energy property, meaning that your solar project will not result in additional taxes on your property tax bill. Thanks to another Florida tax exemption, you also do not have to pay sales tax on your Solar energy system.