The Residential Renewable Energy Tax credit, also known as the Federal Investment Tax Credit (ITC), gives a 30 percent tax rebate for homeowner solar installation costs. If you are considering San Diego solar panel installation for your home or business, you should understand these tax breaks given to people who have installed such systems.
Tax Credit, Not a Refund
Solar electric installations on homes can receive an unlimited credit through December 31, 2016. This credit can have a value of up to 30 percent of the system’s installation costs. These credits apply to the panels, hardware, installation labor, permitting feeds, and possibly re-roofing or electric costs associated to the total installation cost. However, the credits will not come to taxpayers in the form of a check in the way that tax refunds come each year. Instead, the money credits can be applied to the amount of taxes a person owes at the end of the tax year during the time when the solar panels were installed.
Who Does This Tax Credit Benefit?
If you do not owe taxes, you will not benefit from the tax credit discussed above. These credits can only be applied to the balance of taxes owed to the IRS at the end of the tax year. Furthermore, if you do not own your property, you will not benefit from the tax credit either. Solar electric installations that occur on rented properties do not count towards this tax credit incentive. It is also not clear if the surplus tax credits a person earns can be rolled past 2016 or not. If you have a home or business on non-rental property and often owe taxes at the end of the year, you can benefit greatly from this tax break. Be sure to install your system this year and receive credits.
Learn more about the benefits of going solar by calling CES Solar San Diego at 1-855-45-COAST today. We are one of the leading experts in both commercial and residential solar systems in the city. Schedule a free consultation and let us help you go solar today!