How Can the Solar Tax Credit Help Save You Money in 2024?
What Do You Need To Know About the 2024 Federal Solar Tax Credit?
Tax season is approaching, which means that now is an ideal time to learn more about the Federal Solar Tax Credit. Whether you are a homeowner or business owner, you can save money by switching to solar energy and then claiming the tax credit for next year. By choosing a quality local solar provider, such as Solera Energy, you will be eligible to receive a solar tax credit.
But how does that work?
We’ve put together a quick and easy-to-read guide that helps explain the entire process of receiving a solar tax credit and, hopefully, will save you money as well!
What Is a Tax Credit?
To begin with, it is worth taking a moment to explain what a tax credit is. The simplest way to explain it is to say that it’s a deduction on the amount of income tax that you would typically owe each year. People receive tax credits for various reasons, with some of the more common reasons including health insurance and having children.
What Is a Solar Tax Credit?
A tax credit is money that you can claim on your taxes in the form of exemptions for complying with specific government initiatives or regulations. One of these initiatives involves installing a solar power system for your home or business. As it currently stands, the solar tax credit is at 30%.
How Can You Tell if You Are Eligible for a Solar Tax Credit?
There are several criteria that you must meet to be eligible to receive a federal solar tax credit. These include, but are not limited to, the following items:
- Solar PV systems installed in 2020 and 2021 are eligible for a 26% tax credit. In August 2022, Congress passed an extension of the ITC, raising it to 30% for the installation of which was between 2022-2032.
- The PV system must be located at your primary or secondary residence in the United States or be utilized as a part of an off-site community project.
- You must be the owner of the PV system.
- The PV system must be new or being utilized for the first time.
How Does the Federal Solar Tax Credit Help Homeowners?
In addition to allowing homeowners to save money on their taxes for 2024, installing a solar power system in your home has several other benefits. One of the most immediately recognizable benefits is owning your power instead of paying the electric company each month.
Can Business Owners Take Advantage of the Federal Solar Tax Credit?
Homeowners are not the only people who can take advantage of the 2024 Federal Solar Tax Credit. To claim the exemption, you must be the person who owns the system and the property where the system is installed. This means that if you own a business and the corresponding location where you conduct business, you can install a solar power system at that location and claim the same benefits as a homeowner would.
Where Can I Receive More Information About the Solar Tax Credit?
For a more detailed accounting of the requirements to apply for a solar tax credit or how to request the deduction on your income tax filing, please visit the IRS website to learn more.
Switch to Solar Energy for Your Home or Business Today
If you are thinking about installing a solar power system in your home or place of business, Solera Energy would be happy to answer any questions you may have about doing so.
To learn more, you can contact us today through our online contact form or reach out to us by phone at (866) 346-2009, and one of our valued team members will be able to assist you further.
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