At this point, you know the federal solar tax credit for solar is 30%. It’s important to know that this is a credit, and not a deduction. Here’s how you get your tax credit.
When you file your federal taxes in the winter or spring, you’ll file the 5695 IRS form. You’ll claim how much the system cost and the IRS will send you a check for the amount. It’s that simple. If you owe more in taxes than you will receive in your tax credit, you will essentially just have to pay the difference in taxes, saving you quite a bit of money. If you are owed money, or your tax credit is more than you owe, you’re getting money in your pocket.
As always, you should check with your tax professional to make sure that you get the tax credit in the best way for you and that you’re filing correctly.
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