When you invest in solar panels, you can receive a federal solar investment tax credit. We’ve been telling you that solar panels are a great investment, and the federal government agrees! Let us break down how we can help you save thousands on solar panels for your home in Cincinnati, or anywhere in Ohio, Kentucky or Indiana.
A tax credit is a dollar-for-dollar reduction in the amount of income tax you would otherwise owe. Our way of explaining it? More money you get to keep in your pocket. If you purchase and install a solar system by December 31, 2016, you are eligible to receive a 30 percent solar tax credit on your 2016 tax return. Depending on your customized solar system, this tax credit can be upwards of $10,000.
Icon Solar will walk you through your specific solar panel and solar investment tax credit situation, plus handle the paperwork! We can also help you find any additional incentives available to you, such as state tax credits, utility grants or production-based incentives.
The solar investment tax credit is nonrefundable, meaning you won’t get a tax refund for the amount of the tax credit that exceeds your liability. If your savings exceed the amount of tax you owe, you can carry over the unused amount of tax credit to the next year. Think of it as a store credit. You then have a credit you can use specifically for taxes. Sounds pretty nice, doesn’t it?
To be eligible for the 30 percent federal tax credit on your 2016 taxes, you must meet all of the following criteria:
- Your solar panel system is purchased and installed before December 31, 2016. (That’s where Icon Solar comes in!)
- Your solar panel system is on a primary residential location in the U.S.
- You own your solar panel system, aka you purchased it with cash or financing.
- You’re claiming the “original installation” of the solar equipment.
Remember, we’re your solar experts, not your tax experts, but with our in-depth knowledge of the solar tax credit, we can help you make wise decisions. We know you’re itching to see what your savings could be with solar. Give us a call to make an appointment with one of Icon Solar’s specialists! Let us take you step by step through your solar savings.
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