As the world continues to look at energy in terms of environmental impact and sustainability, many homeowners are switching to solar power energy systems – to save money and to reduce their carbon footprint.
Homeowners switching to solar would likely stumble upon the subject of the Solar Tax Credit. The Solar Tax Credit is an incentive that is helping drive the solar revolution. Below, Geneverse covers the Solar Tax Credit in detail.
More on the Solar Tax Credit
Officially known as the Investment Tax Credit (ITC), the Solar Tax Credit is a federal incentive that encourages adoption of solar energy. There are a variety of reasons for this incentive, including reducing the strain on the energy grid.
THe Investment Tax Credit was established in 2006, part of the Energy Policy Act, and played an instrumental role in the promotion of solar power across the USA.
How the Solar Tax Credit Works
The ITC works by providing tax credits equal to a specified percentage of qualified expenses, expenses that are incurred during the solar energy system installation process. While there are federal and state incentives in place, many solar energy system owners receive a credit around 30% of the eligible costs.
What Are Qualified Expenses?
Just like with business expenses, there are certain items that are eligible to write off. Most typically, qualifying expenses might include the cost of solar panels, any sort of equipment needed for mounting, installation costs, not to mention wiring.
It’s a good idea to keep detailed records and hold onto all receipts related to your solar purchase. You may have to substantiate your expenses when you go through the process of claiming your tax credit.
There are certain criteria you have to meet to receive the Solar Tax Credit. Some boxes that need to be checked include:
- System was installed between January 1, 2017, and December 31, 2034.
- System is located at a residence belonging to you in the United States.
- Solar energy system is new or being used for the first time (original installation).
It’s important to take a look at the latest information to see if you qualify for any solar tax incentives.
Transitioning to Clean Energy with Geneverse
The Solar Tax Credit and other tax incentives for solar energy remain a crucial driver when it comes to the transition to cleaner and more renewable energy sources, and Geneverse is doing the same thing. We are excited to introduce the Geneverse PowerPillar ESS, a solar energy system that can power your home for good.
If you're wondering whether or not you quality for the Solar Tax Credit, it's best to consult with a tax professional for more information. If you are eligible for this credit, you can fill out the IRS Form 5695 with your federal tax return.
Just like the Solar Tax Credit stands as a beacon for clean energy, Geneverse stands with our customers in providing the most cost-efficient solar energy system available on the market. If you’re looking to make the leap into green energy, Geneverse provides products and solutions that help you own your power.
About Geneverse: Geneverse is the most reliable and cost-efficient source for solar energy. Our PowerPillar ESS integrates solar power, battery storage, not to mention grid and generator power sources that help our customers get the most out of their energy storage investment – all at the most competitive pricing on the market. We craft complete home energy systems that power energy independence rain or shine in addition to portable solar products that provide decentralized power during emergencies and unforeseen circumstances. Learn more about Geneverse and how we can bring protection and security to your family/household by visiting our website today.