Energy Star-approved solar-power systems that were installed before the end of 2016 are eligible for a credit worth 30 percent of the total cost for the year it was installed. This means that if you purchased an Aztec Solar System last year, you can claim the tax credit on your 2013 taxes.
As a credit, you can take the amount directly off of your tax payment instead of deducting it from your taxable income. You can claim the credit for your primary residence, a vacation home, and for either an existing structure or new construction.
Other than the cost of the system, there is no limit to the dollar amount of the credit.
Here are a few other reminders to consider when qualifying for the credit:
·You need to owe federal taxes. The credit reduces the amount of tax you’ll have to pay, so if you don’t have any tax liability, the credit can’t help you.
·The credit can roll over into the next year, so if you’re liable then, you can apply it at that point.
·It applies to solar systems installed in both existing homes and new constructions, as well as second residences, but doesn’t apply to rentals.
·The credit is available for systems installed from 2009 through 2016.
·To claim the credit, you must file IRS Form 5695 as part of your tax return; you calculate the credit on the form, and then enter the result on your 1040.
For more information on the credit, visit http://energy.gov/savings.