Tax Credits for Solar Energy
One of the most valuable tax credits available to homes and businesses is the solar energy tax credit. It’s a tax credit that applies to solar-powered hot water and panel systems. It’s worth up to 30% of the total cost of purchase and installation.
At the end of the year 2015, Congress extended this credit for four years. That means it’s currently possible for you to claim the solar tax credit until the end of 2019 in its current form. It will gradually phase out until 2022 when homeowners can no longer claim it, and it’s only worth 10% to businesses.
Like with other improvements, there are also tax credits in your State, and cash rebates.
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Are There Any Other Rewards for Energy Efficiency Upgrades?
Your local utility may also offer a financial incentive for becoming more energy-efficient. Utilities may provide you with rebates when you make energy efficient purchases, such as building materials, electronics, pool pumps, water heaters, and appliances.
Many of these rebates are provided immediately after purchase. Others are only provided when you can prove that the installation has been completed.
Rebates can be as low as $10 for energy efficient lightbulbs to more than $1,000 for larger pieces of equipment.
Tax Credits for Energy Efficiency
As of the 2018 tax year, the federal government offers the Nonbusiness Energy Property Credit. The credits are good through 2019 and then are reduced each year through the end of 2021.
A lot of states continue to offer tax credits when you upgrade your home with new energy efficiency installations. These tend to come in the form of property tax exemptions when you purchase or install certain types of equipment.
How to Claim the Solar Energy Tax Credits
We recommend filing your taxes with H&R Block this tax season because of all of the tax benefits that you will receive. H&R Block asks you simple questions to fill in the proper forms and will help you claim the energy tax credits that you qualify for, and you will get the largest refund possible.
You never have to know the tax laws or access tax tables during the filing process!
They even have a free tax refund calculator available that allows you to know the amount of money that you will be getting back in your tax refund.
Their online filing services have the ability to import your W2 information into your tax return so you can avoid worrying about your forms being delivered via snail mail.
You can visit the Department of Energy’s website for a full database of different credits and rebates.