Choosing a custom solar design for your home or business pays rich dividends. One of the most significant benefits is a credit on your federal tax return. The cost of utilizing solar energy is falling all across Florida and the U.S. Your long-term savings and this tax credit make your solar design investment more than worthwhile.
Now is the best time to consider installing a custom solar design from Beryl Project Engineering for your home or business. Install a custom solar design this year and take advantage of ongoing tax savings in addition to what you will save in energy costs. A Beryl solar engineer can explain more about how a custom solar design can benefit your home or business.
The Federal Solar Tax Credit
The Residential Renewable Energy Tax Credit allows both residential and commercial savings on a solar design installed during the previous tax year. That deduction for the 2019 tax year is 26% of the total cost of installation. This federal tax credit was originally established by the Energy Policy Act of 2005 and was set to expire at the end of 2007.
Congress was prompted to extend the expiration date of this legislation more than once as the popularity of solar energy continued to grow. The current form of the tax credit allows a deduction of 26% of the total cost for tax year 2019 and 22% for those installing a new system in tax year 2020. Commercial installations from 2022 onward can still enjoy a 10% deduction for the cost of the system.
Claiming the Tax Credit for Your Solar Design
Home and business owners are able to claim the federal solar investment tax credit for as long as they own and use their solar design. The credits can even be rolled over into future years as long as the tax credit is in effect. Congress can even choose to extend the credit once again based on the popularity of solar energy.
You can claim the federal investment tax credit for solar by completing Form 5695 and filing it with your yearly federal tax return. Be sure to share this information with your accountant along with the necessary figures for completing the form. An instruction sheet for completing the form is also available for download from the IRS.
Beryl Project Engineering in Tampa, FL can introduce you to the benefits and options of a custom solar design for your home or business. We can design virtually any solar energy system to meet your needs and fit in the available space on your property. Call or contact us online today to investigate cost-saving, environmentally friendly, and sustainable solar energy solutions for your home or company.