The 30% Federal Tax Credit – The Real Story

The 30% Federal Tax Credit – The Real Story

At this time of year the solar industry is well known for flooding the media with messages about the 30% Federal income tax credit, and frankly some of those are misleading. You may hear that the tax credit is expiring soon, or that only certain solar companies can get you that tax credit.

So let’s look at the facts –  The Residential Energy Credit is available to all homeowners and may be claimed by filing IRS form 5695, which allows you to claim a federal income tax deduction of 30% of qualified solar electric property costs.

Generally this amounts to 30% of your installation contract cost, which, for Day One Solar, includes permitting, materials, labor and sales tax.

On December 18, 2015, Congress passed a new budget deal that includes extending the 30% federal tax credit for five more years! You may find the IRS form 5695 at https://www.irs.gov/pub/irs-pdf/f5695.pdf

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