30% Tax Rebate
One of the biggest benefits of going solar is the federal tax credit! The Residential Clean Energy tax credit allows a nonrefundable tax credit of up to 30% of the total cost of solar installation. (A tax credit is a dollar-for-dollar reduction in the amount of income tax you owe. For example, claiming a $1,000 federal tax credit* reduces your federal income taxes by $1,000.) The solar energy tax credit applies for the next ten years — through December 2032. The tax credit is available for the year in which you complete the solar installation.
Eligible tax-deductible expenses include:
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The cost of the solar (PV) panels
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Labor costs for onsite preparation, assembly, or original installation
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Permitting fees and inspection costs
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Balance-of-system (BOS) equipment, including wiring, inverters, and mounting equipment
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Energy storage devices such as storage battery systems
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Sales taxes on eligible expenses
To be eligible for the federal tax credit, you must own your home and own the solar system. You can either purchase the solar system with cash or through financing – but you are NOT eligible if you are leasing the system or paying a solar company to purchase the electricity generated by the system. After seeking professional tax advice and ensuring you are eligible for the credit, you can complete and attach IRS Form 5695 to your federal tax return. In addition to the Residential Clean Energy tax credit, you may be eligible for rebates or incentives from your state, municipality, or local utility provider.
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*The content of this notice is provided for informational purposes only and is not intended as tax advice. Bullet EV cannot guarantee that you will be eligible for the tax credit and is not responsible for any issues that may result from your application for the tax credit, including your failure to receive the tax credit. You should consult your tax professional regarding your eligibility for the tax credit.