Going solar is a smart decision that is encouraged by both state and federal government and even some local governments. Almost everyone is aware that fossil fuels are a limited resource [split sentences] and by using clean energy, such as solar power, we are doing our part as individuals to help ensure that the dwindling resource will last.
Federal Tax Credit
The Federal Government will give you a 30% tax credit. If you cannot use the entire amount this year then the remainder will be applied to your 2016 taxes. The United States Federal Government offers a personal tax credit of 30% established by The Energy Policy Act of 2005. A taxpayer may claim a credit of 30% of qualified expenditures for a system installed on a residential home that the tax payer resides in. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. This program is set to expire on December 31, 2016 and there is no maximum credit for systems placed in service after 2008. The system needs to be operational on or after January 1, 2006 and before December 31, 2016. To claim this tax credit you will need to complete a Form 1040 and Form 5695
State Rebates and Incentives
State and Local incentives are updated frequently. To check your state’s and local rebates and incentives programs we recommend a couple of websites.