Don’t miss your chance to earn your 30% tax credit!
If you’re planning to purchase solar panels for your roof, now is the time to do so! The Solar Tax Investment Credit is set to expire in December 2016, but in order to take full advantage of the credit, you may need to install your panels in 2015.
What exactly is the Solar Investment Tax Credit?
The Solar Investment Tax Credit is a tax credit that can be claimed on federal income taxes for 30% off on the total cost of your PV system, after rebates and coupons have been applied.
How does the 2016 expiration date impact me?
The Solar Investment Tax Credit is set to expire in December 2016. This means that you must have your PV system installed, not just on contract, before December 2016 in order to receive your credit for it. A tax credit is also not the same as a tax rebate: individuals claiming the credit cannot receive it in the form of a refund – it only applies towards funds owed to the federal government.
The exciting news is that your credit can roll into the next year. If you have your system installed by December 2015, and you don’t use the entire credit on your 2015 taxes, you can use the rest of your credit on your 2016 taxes. The sooner you get your system installed, the more options you have to utilize the tax credit.
What are some exciting benefits of the tax credit?
- There is no maximum amount you can claim.
- You can claim the credit on a vacation home, it does not have to be your primary residence in order to claim the credit.
- The PV system doesn’t have to be on your roof, as long as it is installed on your property and is generating electricity, you can claim the credit.
- If you have an in home office, you can still claim the credit as long as 80% of the PV system cost is for residential use.
- If you used financing options to pay for your solar panels, you are still able to claim the tax credit.
- If you have any other questions regarding the tax credit, this is a great guide to the Solar Tax credit.
The most important thing to know is that this credit expires in December 2016. If you want to get the best bang for your buck, you will want to have your PV system installed by December 2015 in order to roll over your credit to 2016.
With the approaching tax deadline, our installation appointments are filling up quick. To make sure you get your system installed on time, be sure to book in advance. The installation time period can take as long as 1.5-2 months to complete, so contact us today to be sure to get your system installed before December! (916) 853-2700