There’s some very attractive tax help for those doing their bit to reduce the nation’s carbon footprint, it’s the Federal Solar Tax Credit 2015. How did this come about? On October 1, 2008, the Emergency Economic Stabilization Act of 2008 was signed into law, which effectively provided support and encouragement for the renewable energy market. Once limited to commercial solar investments, the terms of the tax credit have since become even better. Not only was it extended all the way through 2016, it also expanded its coverage to include residential installations.
If you’re among those who have taken the solar path, you might be eligible for the Federal Solar Tax Credit 2015.
As of January 2009, any purchase of a residential solar electric system qualifies for a tax credit equal to 30 percent of its cost and its installation.
Even if you don’t have complete solar package, you may still be eligible. To find out if the Federal Solar Tax Credit 2015 applies to you, consult the list below. You qualify if:
- You use a complete solar power package for either your home or your business.
- You made any purchase that is meant to expand an existing solar power system and that included at least one solar panel.
- You purchased an emergency battery backup system that included at least one solar panel.
- You use a solar power system for an RV or a boat that has been accepted by the IRS as your second home for tax purposes.
To better understand the offered tax credit, the following are some more facts in relation to eligibility, coverage, correct forms, and other details:
- You may still be eligible even if the household served by the system is not your primary residence.
- In case the credit exceeds your tax liability, the excess may apply to the following taxable year.
- The tax credit does not have a ceiling amount. There used to be a $2000 cap, but that has since been eliminated.
- It also applies to equipment costs, including its installation.
- When reporting expenses involving residential renewable energy systems, use IRS Tax Form 5695; for commercial systems, use IRS Tax Form 3468.
Since everybody’s tax situation is unique, it’s important to be guided by a tax professional throughout the entire process. It’s to your advantage to have an expert to consult regarding different pertinent matters, from determining whether you qualify for the Federal Solar Tax Credit 2015 or not to applying for it, to figuring out how you should use it if you are, indeed, eligible