Florida Solar Tax Credit 2017

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.

Florida solar tax credit 2017.

Beginning january 1 2009 the tax credit cap no longer applies. 8 that means if you purchase a 6 kilowatt system for 18 300 you ll pay. 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. To claim the credit you must file irs form 5695 as part of your tax return.

The federal incentive tax credit for solar or itc is the most touted incentive for going solar. Your solar loan will be paid off after year 15 and then the real savings start. The federal itc was originally established by the energy policy act of 2005 and was set to expire at the end of 2007. Filing requirements for solar credits.

A tax credit cap of 2 000 applies in 2006 2008. 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 it does is give you a credit of 30 based on the amount to install your system.

This is essentially a 26 discount on your solar system. What does the federal solar tax credit extension mean for the solar industry. 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 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.

Solar photovoltaic systems are eligible for a 4 watt rebate capped at 20 000 for homes and 100 000 for businesses. This generous rebate effectively knocks off 26 percent of the cost of your new solar energy system right off the bat as a credit on your income tax. 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. The total net savings after 25 years from an average solar loan in florida bill savings and incentives minus loan cost is 29 109.

For example if your system was 30 000 you get a credit of 9 000 taken off of your tax liability.