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Use Federal Energy Tax Credits for Solar Energy Systems

Converting your home to rely on solar energy helps reduce your impact on the environment while lowering the cost of your electric bill. In the long term, solar power will help save you money and secure sustainable and independent power for your home. It can be expensive to install, however, and this up-front cost is a deterrent for many people who are considering alternative power.

Fortunately, the federal government is helping to reduce the financial impact of Austin solar panel installation by offering tax credits. Until December 31, 2016, all homeowners who make the switch to solar power can enjoy a 30% tax credit with no upper limit. This tax credit applies to both newly constructed homes and upgrades to existing homes. In addition to photovoltaic panel installation, the tax credit applies to other solar upgrades, such as solar water heaters. Any energy-efficient change you make to your home can potentially earn you a sizeable tax credit.

In order to apply, homeowners must simply save the receipts from their solar panel installation and fill out Form 5695 with the IRS. The information from this form should then be copied to line 52 of your 1040 so that the credit can be applied to your tax return. If someone prepares your taxes for you, just be sure to provide the receipts and explain that you want to take advantage of the solar tax credit. Your tax professional should have no problem in taking care of it from there.

Austin solar power is gaining in popularity, and this tax credit helps many families make their dreams of energy independence become reality. If you’ve always wanted to convert to solar, taking advantage of the tax credit while it’s still active is a wise choice. ABC Home & Commercial Services can provide quality installation and care of your new solar system. The 30% tax credit substantially lessens the financial blow of a solar panel installation and having our specialists here at ABC install the unit makes the conversion to solar power hassle-free.

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