Solar on New Homes
If the owner buys a new home with solar and owns the system wholly, he is entitled to the ITC in the year he moves into the home. This is because they buy power from the system over a power purchase agreement (PPA), and the ITC claims that the company leases the system or providing the PPA.
How to fill out Personal Tax Return 1040 on Form 5695
Once the money has been spent, you will need to prove it to the government to apply for a solar panel tax credit (make sure the person submitting the request is the system owner).
If you would like to present your tax, please use the steps below to apply for a residential renewable energy tax credit.
- Collect all expense receipts and place them in a safe place.
- Make sure you are eligible for a tax credit (if you own the system and need to pay taxes, you are probably eligible, consult a tax expert if you are unsure).
- Fill out the IRS Form 5695 to add your renewable energy credits (click the link for detailed instructions on filling out the tax form).
- Add renewable energy credit information to the generic form 1040.
That’s all!
We hope this is an excellent introduction to the Federal Solar Tax Credit and will help you navigate the research process. See the state’s database of solar incentives for more information on how to take advantage of more solar tax credits.
If you need help or have any questions, please feel free to contact us.