Solar Tax Deductions for Property Owners
Solar power systems are a significant long-term investment, and the price tag can often be daunting, but solar tax incentives are available to help offset costs. These programs are designed to make solar energy a more accessible and financially viable choice for individuals, businesses, and farms alike. This post is an introductory resource on your solar tax credit options. Get ready to discover how going solar not only contributes to a greener planet, but also puts some green back in your pocket.
What are Solar Renewable Energy Credits?
When a solar power system is installed, owners can claim solar tax credit on federal income taxes to provide a reduction in dues proportionate to the cost of a new solar system installation. These are not mutually exclusive, all eligible incentives available in your region can be applied to your project costs. This can help compensate for installation costs and encourage residents to make the switch to solar.
Residential Solar Tax Credits
There are a variety of federal solar tax credits available in the United States, depending on your region and community. There are two major programs used by homeowners in Ohio and West Virginia. Most new residential solar systems installed between 2022 and 2032 are eligible for the Residential Clean Energy Credit, equaling 30% of the system’s equipment and installation costs. The Low-Income Communities Bonus Credit offers a 10-20% credit for residential installations based on region and income levels. Both of these are excellent resources available to a wide variety of homeowners that can be combined to help you go green without breaking the bank.
Commercial and Agricultural Solar Tax Credits
Federally, the Investment Tax Credit (ITC) and the Energy Community Tax Credit Bonus are available for businesses, farms, and nonprofit organizations to claim on solar system installation costs. New solar systems installed between 2022 and 2033 are eligible for the ITC’s 30% tax credit, similar to the residential credit. The IRA Energy Community Tax Credit Bonus is an up-to 10% bonus for projects in regions that have historically relied heavily on energy production, especially coal. This program, through the Inflation Reduction Act (IRA), covers the majority of Ohio and West Virginia. Renewable energy is a growing field and programs for commercial and agricultural access have been increasing in recent years, see what solar can help you save!
ARP Solar is available to assist in solar tax incentive research and applications, CONTACT US today to get started!