Act Fast -- The 30% Federal Solar Tax Credit Expires in 2019!
Yes, you can still take advantage of the lucrative federal solar tax credit and reduce the
amount of your income tax bill by a full 30 percent of your photovoltaic project costs.
The rules used to require a PV system to be up and running by the end of the year in
order for the owner to claim the 30 percent federal solar investment tax credit (ITC).
Now, thanks to a recent modification in the eligibility guidelines, you have a bit more
Want to save the most on your PV system installation? Here’s how to make sure your
photovoltaic project qualifies for the federal solar tax credit.
Start You PV System Installation by the End of 2019
The first step is to contact a reputable local photovoltaic contractor – like the team at
PRVL Energy – and officially begin your switch to solar power. To claim the 30 percent
tax credit, you’ll need to accomplish this task by December 31, 2019.
If you don’t meet that deadline, you can still benefit from the federal solar incentive – but
you won’t offset your income tax bill by quite as much.
Each year, the solar ITC amount drops. Start your photovoltaic project in 2020, and you
can claim a 26 percent credit on your federal income taxes. Wait until 2021 to go solar,
and you’ll be able to reduce your tax liability by just 22 percent of your PV system costs.
In 2022 and beyond, the financial incentive will be gone.
Meet One of the Following IRS Requirements
Simply scheduling a consultation with a professional photovoltaic contractor isn’t
enough to qualify for the federal solar tax credit. To be eligible for the financial incentive,
you’ll need to do one of the following:
Pass the “Physical Work Test” by completing a significant amount of work on your photovoltaic project
Meet the “Five Percent Safe Harbor” requirement by incurring or paying 5 percent or more of your PV system costs
Complete and Submit the Solar ITC Paperwork
Claiming the 30 percent federal solar ITC on your income taxes is relatively easy. IRS
Form 5965 is the one you’ll need to complete, and you can find instructions on how to
do so on the IRS website.
That said, if you want to ensure you receive the full benefit of the federal solar tax credit,
you might want to ask an accountant or tax professional for assistance. After all, if you
make a mistake in the paperwork, you might not qualify for the entire incentive.
Or, simply ask your professional photovoltaic contractor for help with the solar ITC form.
Some – including the team here at PRVL Energy – are well-familiar with the tax credit
paperwork and can give you a hand.
If you’re ready to begin your photovoltaic project and you live in Utah, schedule a free
consultation with the professionals at PRVL Energy. We can design a highly-efficient,
cost-effective system that meets your household needs – and our team can get started
soon enough for you to claim the full 30 percent federal solar tax credit. Contact us