Florida Solar Tax Credit 2017

The federal incentive tax credit for solar or itc is the most touted incentive for going solar.

Florida solar tax credit 2017.

The federal itc was originally established by the energy policy act of 2005 and was set to expire at the end of 2007. For example if your system was 30 000 you get a credit of 9 000 taken off of your tax liability. As part of the 2006 florida energy act the solar energy systems incentives program offers rebates for individuals or businesses to purchase solar photovoltaic solar thermal and solar thermal pool heating systems. You calculate the credit on the form and then enter the result on your 1040.

The 26 solar tax credit known formally as the investment tax credit itc allows tax paying homeowners to claim 26 of their solar system s cost as a deduction on their income taxes. If you end up with a bigger credit than you have income tax due a 3 000 credit on a 2 500 tax bill for instance you can t use the credit to get money back from the irs. Filing requirements for solar credits. What does the federal solar tax credit extension mean for the solar industry.

For residential pv systems consumers who install solar electric systems can receive a 30 tax credit for systems placed in service from january 1 2006 through december 31 2016. The total net savings after 25 years from an average solar loan in florida bill savings and incentives minus loan cost is 29 109. To claim the credit you must file irs form 5695 as part of your tax return. This generous rebate effectively knocks off 26 percent of the cost of your new solar energy system right off the bat as a credit on your income tax.

In 2019 the tax credit can reduce the cost of a solar installation by 30 7 including a solar battery purchase. In addition to florida s state solar programs you ll be eligible for the federal solar tax credit if you buy your own home solar system outright. 8 that means if you purchase a 6 kilowatt system for 18 300 you ll pay. This is essentially a 26 discount on your solar system.

Your solar loan will be paid off after year 15 and then the real savings start. Beginning january 1 2009 the tax credit cap no longer applies. What it does is give you a credit of 30 based on the amount to install your system. Solar photovoltaic systems are eligible for a 4 watt rebate capped at 20 000 for homes and 100 000 for businesses.

Then at the end of the first year you earn a 7 484 federal solar tax credit leaving you 6 526 ahead.