Yes, you can get money from the government for solar installation to offset the cost of outdoor living projects. How does the process work? Well, it’s actually pretty straightforward. The path to savings is through a program called the Investment Tax Credit (ITC).
The ITC pays for 30% of your solar energy system.
Also called the federal solar tax credit, the ITC lets you claim 30% of the cost of a new solar energy project. That money is then refunded to you as a credit on your federal tax bill, so solar installation can offset the cost of outdoor living projects by 30% if you build both together.
A tax credit is dollar-for-dollar savings.
The ITC is different from a rebate or a deduction because it directly reduces what you owe in taxes.
There’s also no income limit on the ITC program, so you’re eligible no matter your tax bracket.
There are five requirements to be eligible for the Investment Tax Credit:
- You have to own your solar energy system. If you lease, you don’t qualify.
- The solar panels have to be installed on your residential property. That means if you rent your home, you’re not eligible. (There is a separate credit for commercial property.)
- You have to file for the ITC in the year your system is installed and receive permission to operate (PTO) from your utility grid.
- Only first-time installations qualify for the ITC. So, existing systems that have already been claimed aren’t eligible, even if you’ve made improvements.
- The site of installation has to be a house, mobile home, cooperative apartment, condominium, manufactured home, or houseboat.
Install sooner rather than later.
If you install before 2022, you can get that 30% tax credit. After that, the savings decreases 4% a year before dropping to 0 altogether in 2035.
Claim the solar tax credit with your federal tax return
The easiest way to make sure you correctly claim the solar tax credit is to work with a certified public accountant.
But if you’re doing your own taxes, know that you’ll need to complete IRS Form 5695. It includes sections for calculating the credit amount and applying it to reduce your federal tax liability.
After calculating the credit using Form 5695, transfer that information to your Form 1040 to adjust your final tax amount.
Solar power offers energy independence.
Here is the #1 reason you should want solar power: It gives you control over your energy production.
It also lowers your monthly utility bills, giving you long-term savings. Plus, solar minimizes your dependence on the grid, so you’ll have energy even in an outage.
Solar also increases your home value.
Can solar installation offset the cost of outdoor living projects? Well, it certainly adds to your home’s value. According to a study by Zillow, homes equipped with solar sold for an average of 4.1% more than similar homes without it. So, if your home would normally sell for $250,000, that’d give you an additional $10,000.
Use your savings to improve outdoor living.
You can use the savings from the federal solar tax credit to enhance your outdoor living space. Transform your backyard into a comfortable, relaxing, and social environment that complements your indoor lifestyle.
Trinity Stone Construction is here to help. In addition to our expertise with solar installation, we also design and build outdoor living spaces. We’ll match your vision, whether that’s a custom deck with a built-in dining area or a cozy fire pit.
Contact Trinity Stone today.
We’re an experienced team of professionals local to North Texas, and we’ll help you achieve energy independence with solar installation.
We offer all major brands and follow through with installation and setup. And we give you:
- Access to every major brand on the market
- Flexible financing
- Components tailored to your home and location
Click here to talk to an expert at Trinity Stone Construction today.
