Solar Tax Credits Renewed
In December 2015, the generous federal tax credit for solar energy were renewed by wide margins in the US House and Senate. The extended credit program will continue to provide 30% of the value of an installed solar system as a credit against tax owed for both homeowners and businesses. The credit applies to solar electric or solar water heating systems installed on single-family or multifamily dwellings. The credit applies to taxes owed, so in order to take the credit, a home or business owner must pay income tax through direct or indirect means.
Note that a tax credit is different than a deduction and has a 100% cash value for offsetting taxes to be paid. Normally the credit is realized by an increase in the amount of IRS refund in the year it is taken.
Learn more about tax credits on our Incentives page!