Please keep in mind as you read this post about the solar system tax credit, the information contained in it is based on the best information available. You will want to consult your tax professional before claiming this credit.
The use of solar energy in this country continues to grow. Renewable energy sources are being utilized more and more as a way to decrease the dependence on fossil fuels and to decrease the bad effects of that dependence. The Investment Tax Credit (ITC) is our government’s effort to motivate individual taxpayers and commercial organizations to invest in this kind of renewable energy.
This solar system tax credit is available to those who use solar systems to generate electricity to heat, cool, or provide lights for structures. Taxpayers must be the one using the equipment. All standards for quality, design, and performance must be met.
Before 2009, the tax credit available for residential solar systems was capped at $2,000. After 2009, this solar system tax credit was increased to 30% of the entire system cost. The ITC continues in effect until December 31, 2016.
The solar system tax credit is a reduction in income taxes, dollar for dollar, that the person or company claiming the credit would pay to the government. One caveat concerning this credit is that the individual or company must have a tax liability to the government. If, for some reason, there is no tax liability, some entities enter into a third-party agreement where the third party installs the system, takes the solar system tax credit, then passes on some percentage of that saving to the customer.
For those consumers who may not have the financial ability to purchase a solar system outright, this arrangement may be attractive.
In any case, the ITC is another way our government is addressing our need to overcome the country’s dependence on fossil fuels. To further the efforts to save our planet and to save the consumer money, this effort is one step in the right direction.
Keep Alternate Energy of Plymouth, MA, in mind for giving you direction in using your solar system in your home or business. They can help you see how to maximize your savings with solar energy and will help you find the tax information you need. Contact them today at 800-327-6527.