If you had solar panels installed this year, you have most likely heard of the Federal Tax Credit (FTC). It’s a tax credit you receive at the end of the year, worth up to 30% of the cost of your solar panel system. To learn more about the FTC, click here.
Many homeowners around this time of year are wondering how to “claim” their credit. It’s pretty simple, just download this form. This is what you will be submitting with your taxes to claim the FTC
If you file your taxes online with Turbotax or H&R Block, there will be an option to enter Energy Efficient home improvements.
Some common Questions:
What if I had solar installed on more than one home this year?
If you made energy saving improvements to more than one home that you used as a residence during 2016, enter the total of those costs on the applicable line(s) of one Form 5695.
What other energy efficient home improvements can be reported on this form?
You may be able to take a credit of 30% of your costs of qualified solar electric property, solar water heating property, small wind energy property, geothermal heat pump property, and fuel cell property.
In addition, these projects also qualify:
-Any insulation material or system that is specifically and primarily designed to reduce heat loss or gain of a home when installed in or on such a home.
-Exterior windows and skylights.
-Any metal roof with appropriate pigmented coatings or asphalt roof with appropriate cooling granules that are specifically and primarily designed to reduce the heat gain of your home.
What if I financed my project?
Report the total loan amount. If you are unsure of the total amount, contact the lender.
I had my panels installed in the past but haven’t used the whole tax credit yet, does the remainder roll over year to year?
Use Form 5695 to take any residential energy efficient property credit carryforward from 2015 or to carry the unused portion of the credit to 2017.