Yes, you read that title right. You likely already know that utilizing solar power in your home can save you money by greatly reducing (or eliminating entirely) your energy bill, but you can also receive a credit on your taxes, saving you even more money!
The federal government is rewarding Arizona homeowners (as well as the rest of the country) who choose to conserve energy, reduce their carbon footprint, and gain independence from their electricity companies by installing solar electric systems in their homes. This comes in the form of the Federal Investment Tax Credit (ITC), and here’s how it works:
Step 1: Call A Local Pro
When you are choosing a solar contractor, it is imperative to go local. Companies that are well versed in your area and are experienced in solar panel installation will know how to best take advantage of the sunlight you receive, as well as any other local rebates and incentives you may qualify for.
Here in Arizona, Energy Solutions Providers has been the frontrunner when it comes to statewide solar expertise. We designed and installed many of the first operating solar electric systems in the state, and our over 1,400 installed systems have established us at the leader in Arizona solar.
After you have chosen your contractor, they will work with you to determine the optimum size for your system (if you’re looking for more info on how many solar panels your home may need, you can read our latest entry here). After designing your system and installing your solar panels with your solar contractor, you can start to expect energy savings right away, with a reduced electricity bill!
Then comes the work to make sure you get the most out of your Federal tax credit.
Step 2: Deduct 30%
Once tax season arrives, you can pile on the savings. This Federal Investment Tax Credit allows a new solar customer to deduct 30% of the total cost of installation from what they owe on their federal taxes. So, if a fully installed system costs $20,000, you can take $6,000 off of what you owe the government on April 15.
Step 3: Carry the Savings into Next Year
One of the lesser known aspects of the Investment Tax Credit is that you can roll over any leftover deduction into the next year. So, based on the previous numbers, if you owed only $4,000 on your federal taxes, that means you would pay $0 and still have $2,000 left to deduct the next year. This means you can squeeze every ounce of savings out of your newly installed system, while still remaining energy independent and eco friendly.
Ready to Use the Sun on Your Taxes? Call Energy Solution Providers!
For Arizonans looking to get the most out of investing in a solar electric system, Energy Solution Providers offers the latest in design and state-of-the-art solar technology. We serve Pinal, Pima and Maricopa counties with a commitment to exceeding expectations. So if you’ve been on the fence about going solar, check out our solar 101, or you can give us a call for a no obligation, free solar quote that is guaranteed to beat any of our competitors.