Florida Solar Tax Credit 2017

The federal incentive tax credit for solar or itc is the most touted incentive for going solar.

Florida solar tax credit 2017.

The 26 solar tax credit known formally as the investment tax credit itc allows tax paying homeowners to claim 26 of their solar system s cost as a deduction on their income taxes. If you end up with a bigger credit than you have income tax due a 3 000 credit on a 2 500 tax bill for instance you can t use the credit to get money back from the irs. In addition to florida s net metering policy and tax exemptions to encourage solar energy the federal government gives you another huge incentive known as the investment tax credit itc. What it does is give you a credit of 30 based on the amount to install your system.

Your solar loan will be paid off after year 15 and then the real savings start. This is essentially a 26 discount on your solar system. 8 that means if you purchase a 6 kilowatt system for 18 300 you ll pay. The federal itc was originally established by the energy policy act of 2005 and was set to expire at the end of 2007.

You calculate the credit on the form and then enter the result on your 1040. A tax credit cap of 2 000 applies in 2006 2008. Then at the end of the first year you earn a 7 484 federal solar tax credit leaving you 6 526 ahead. In addition to florida s state solar programs you ll be eligible for the federal solar tax credit if you buy your own home solar system outright.

For residential pv systems consumers who install solar electric systems can receive a 30 tax credit for systems placed in service from january 1 2006 through december 31 2016. In 2019 the tax credit can reduce the cost of a solar installation by 30 7 including a solar battery purchase. As part of the 2006 florida energy act the solar energy systems incentives program offers rebates for individuals or businesses to purchase solar photovoltaic solar thermal and solar thermal pool heating systems. What does the federal solar tax credit extension mean for the solar industry.

The total net savings after 25 years from an average solar loan in florida bill savings and incentives minus loan cost is 29 109. Filing requirements for solar credits. A series of extensions pushed the expiration date back to the end of 2016 but experts believed that an additional five year extension would bring the. For example if your system was 30 000 you get a credit of 9 000 taken off of your tax liability.

Beginning january 1 2009 the tax credit cap no longer applies.