Is There A Tax Credit For Solar Panels? As a homeowner, you’re always looking for ways to save money on your taxes. So you may be wondering if there are tax credits for solar panels? The answer is yes, there is! Keep reading to learn more about the tax credits for solar panels and how …
The federal solar tax credit, also known as the solar investment tax credit (ITC), allows you to deduct 26 percent of the cost of installing a solar energy system from your federal taxes.
The ITC applies to residential and commercial systems, and there is no limit on the number of systems you can install.
You can claim the federal solar tax credit for systems installed in 2020 and 2021.
If you purchase a solar system, you can claim the ITC when you file your federal income taxes.
If you lease a solar system, the leasing company will usually claim the tax credit and pass on the savings to you in lower monthly payments.
To claim the ITC, your solar PV system must be placed in service before December 31, 2023.
The ITC is not available for systems used for heating or hot water.
The ITC is also unavailable if you install solar panels on a car or RV or use them to power portable electronics.
The ITC is available for both new and existing homes.
If you install a solar system on a newly constructed home, you must occupy the house within 12 months to claim the credit.