Everything in Life is Going Green
Going Green cuts down on fuel consumption and costs. The majority of property owners are all for cutting costs. One way to cut costs is by applying solar panels to the home and business.
The Fast-Growing Field of Solar Energy
The government is in a review of the benefits of every home and business across America applying solar energy to their structures and making solar power the primary source of power. If you need help getting tax credits for your solar installion, contact an austin solar installer today!
Q. Why Solar Energy?
A. Because solar energy, renewable energy, is the most popular energy choice in today’s marketplace.
How is Government Helping?
In 2005, the government introduced the solar tax credit for homeowners and business owners. This bill originally was to last until 2007. But due to its extensive popularity, the government extended this bill for up to and over ten years with the hopes of most of America taking advantage of this incentive. This incentive is in force through the year 2022 with a gradual tapering of tax credit percentages. Such as seen in the following scheduled cuts.
2019 sees a 30 percent deduction of a tax credit.
2020 sees a 26 percent deduction of a tax credit.
2012 sees a 22 percent deduction of a tax credit.
2022 sees a 10 percent deduction of a tax credit.
This bill is an incentive to ensure homeowners can afford the change from fossil fules to renewable energy. This solar energy bill allows citizens to deduct up to 30 percent of the cost of transitioning their home to renewable energy. This bill covers all private homes and all businesses across the United States. This bill has no limitations on the cost of this system when installed in private homes or businesses. Meaning that a small 800 square foot home converting to solar energy is going to cost less than a much larger structure.
Solar Tax Credits for Homeowners is Coming to an End
This amazing solar tax credit now starts when the work on installation begins on your home or business. This ruling stipulates that your solar system needs to be installed and running by December 31, 2022. There are instances where property owners can lease their solar panels. However, that property owner is not entitled to any tax credits. Some property owners want to save even more by leasing solar energy but in the end, could cost them more. When it comes to filing your taxes the following things are what is allowable for the owner to claim.
Filing is Easy
This first thing an owner must do is make sure they qualify for the tax credit. They must gather together all receipts and fill out an IRS Form 5965. The last step is to add the credit to Form 1040.
. Consultation fee
. Solar Equipment
. Shipping Costs
. Tools and Equipment such as screws, bolts, nails, wiring, and more
. Installation and Permitting Fees
. Rules and regulations say that the property owner can install the panels if they know how to install solar energy. However, they cannot claim this installation as a tax credit.
. Cost of Permits
Benefits of Installing Solar Energy
The first advantage is already mentioned in regards to the percentages of deductions given for a solar tax credit allowed on the overall cost of installation. These percentages give homeowners and businesses a chance to decrease their energy costs who otherwise could not afford to change to solar energy. Tax credits are given towards the installation of solar energy. The thing to remember is that everything in regards to solar energy is considered as installation costs such as the initial consultation fee. The client must own and not rent the property.