Voted # 1 Solar Company in El Dorado County
Serving All of California
Shingle Springs: (530) 564-3629
Bakersfield: (661) 670-0358
Did you know you can qualify for important and valuable tax credits if you install solar panels on your home? The federal government has a credit that can help you get back as much as 30% of the overall cost of your solar system. You'll need to fill out IRS Form 5695 to claim the credit, and you can still be eligible for it even if you've claimed other clean energy incentives for your solar project. Those incentives may just reduce the amount of credit you can receive.
Most people call this the solar tax credit, but it's officially the Residential Clean Energy Tax Credit. While it doesn't apply to any structural work you have done in order to support solar panels, it does apply to the panels themselves as well as installation of other solar system equipment. Through the Inflation Reduction Act signed by President Biden in 2022, this tax credit has been extended through 2034.
The credit works by reducing the income tax you owe and can reach as much as $7,500. It's important to note, though, that the credit can only reduce your tax payment and isn't something you'll get back in cash if you don't owe taxes. It's a non-refundable credit, which means it can't bring your tax bill below zero. However, you can carry forward part of your credit if it does take your taxes below zero, so you can use it to offset taxes the following year, as well.
To qualify for this credit the solar system has to be (a) at your home, (b) placed in service in 2017 or later, and (c) owned by you. Depending on where you live you may also be able to get state tax incentives, too.
Don't worry that the tax filing deadline has passed. If you already filed and realize you qualify for the credit you can amend your return to take advantage of it. If you requested an extension and haven't filed yet, there's still time to make sure the credit is on your return when it gets filed later this year. Either way, you're covered and can still get big benefits from this important federal tax credit.
The goal of Solar Savings Direct is to provide the people of California with service for all their solar needs. We look forward to working with you to help you lower your electric bill and to create a more environmentally friendly future. Our services to you are second to none.
Contact us today to learn more!
Bakersfield Office:
3701 Pegasus Drive
Bakersfield, CA 93308
CSLB # 1065773
Bakersfield Office Phone: (661) 670-0358
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