What if you could be paid money to save money?
This may sound like a dream. However, homeowners who have installed solar panels can turn this dream into reality!
It all comes down to the solar panel rebate. Keep reading to discover more about the tax breaks and other benefits you can get thanks to solar panels.
Federal Tax Credit
When people talk about solar rebates and incentives, they are mostly referring to the federal tax credit. And this credit can make a powerful difference in how much you owe in federal taxes next year!
Basically, homeowners who install solar panels can receive a tax credit relative to the cost of the system. And this credit amount is capped at 30%.
Let’s say that it costs $10,000 to purchase and install your solar panel system. You would then be eligible to receive a $3,000 tax credit for that particular year.
How to Qualify
Some good news is that it is easy to qualify. In fact, if you have already installed solar panels, then you already qualify!
As with anything involving taxes, make sure you hold onto all the receipts and other paperwork that you have. In the event of an audit, you may be required to prove the exact cost of the purchase and installation.
In some cases, homeowners may install solar panels on their own. Unfortunately, you are not able to get credit for your own labor, but you can get credit on any other costs associated with solar panel purchase and installation.
How to Claim Credit
How, then, can you claim your solar panel rebate? You must file for this tax credit when you file taxes for the year in which you installed solar panels.
If you file your taxes through an accountant, make them aware of your solar panel purchase. They should be able to walk you through all of the relevant paperwork.
If you file taxes on your own through various online systems, there should be an option you can check to indicate solar panel purchase.
One thing to note: some people receive more of a tax credit than they need for a single year. You cannot get this excess credit as a refund, but you can spread it out over subsequent years.
Also, if you already installed solar panels in previous years, keep in mind you can claim the tax credit up to five years after installation!
Special State Benefits
We have focused primarily on the federal tax credit. This is because it is one every solar panel owner is eligible for.
However, be sure to check out any special solar incentive programs in your particular state. Some states offer solar subsidies for ongoing use and even grants for solar panels you wish to install.
In this way, solar power is an investment that will just keep paying off!
Solar Panel Rebate: The Bottom Line
Now you know about the power of a solar panel rebate. But do you know who can help you get started with solar?
At Summit Energy, we are here to make your home more energy-efficient. To see how we can start saving you money, check out our solar plans today!