Need to Know: Solar Tax Credits

So you may have made a 2015 new year’s resolution to install solar panels on your home or office. Between the hustle and bustle of kids, play dates, office fiascos and events, your resolution may have fallen to the wayside- or better yet, you forgot about it completely. The good news is that 2016 is just as good of a year as any to purchase and install a new solar power system. Besides the potential benefit of reducing your power bill, there are some great federal incentive programs that can be used to reduce the cost of purchasing the equipment.

Take for example, the Investment Tax Credit, commonly known as the “ITC.” The ITC allows customers to take a one time 30 percent federal tax credit for solar power systems installed on residential buildings or properties. Although this tax credit was set to expire in 2015, it was recently extended through 2016. To benefit from this tax credit, you must have taxable income and in most cases be the owner of the residential property that will benefit from the installation. There are also tax incentives for the purchase and installation of other renewable systems on residential property. Those can be found in the internal revenue code.

Then of course, there is the option of installing a solar power system on your office building. Although business owners will not benefit from the ITC, there are other great tax incentives for installing a system. Some businesses may qualify for a 5 year MACRS accelerated depreciation. Commercial system owners must use tax form 3468 to take advantage of these credits.

In sum, 2016 is a great year to follow up on your alternative energy resolutions. If you are installing a large custom system, Renogy can work with you to best determine your needs and match your budget. If you are already prepared to purchase a pre-designed kit, then sign up to the Renogy mailing list to receive notifications about coupons and special offers. Have a happy and healthy 2016!