April 22, 2022
We all know solar energy can save us money on our energy bills, but did you know there is a federal tax credit for solar installations in Florida? As the cost of solar panels continues to decrease, more Florida homeowners discover the benefits of solar power every day. Federal tax credits, incentives, and utility programs make installation more appealing.
A professional can help you select the correct solar panel configuration. Working with a solar panel contractor in West Palm Beach can help you make the most appropriate investment for your home and your budget. If you’re considering a solar installation in the Sunshine State, you’ll want to understand how to leverage the solar tax credit.
The Solar Tax Credit
Formerly known as the federal investment tax credit, or ITC, the solar tax credit provides a 26% incentive that tax-paying homeowners can claim when filing their federal tax refund paperwork. The solar tax credit enables homeowners to deduct 26% of their solar installation cost on their income taxes. Your tax credit rolls over for homeowners with liability under 26% for up to ten years.
To claim your tax credit amount, you’ll need to file the appropriate forms with your federal tax return. When you purchase your solar energy system, you’ll need to fill out Form 5695 during tax season. However, this federal tax credit drops down to 22% in 2023 and then ceases, so homeowners need to act quickly to take advantage.
Are There Other Florida Tax Incentives?
Outside of the federal tax credit for solar energy installations, Florida offers several programs and incentives for solar-powered homes.
First, there’s the net metering initiative. Net metering enables homeowners to sell their excess solar energy. Since the state generates plenty of sunshine, this program benefits solar owners.
Solar energy systems also boast property and sales tax exemptions. The property tax exemption adds up to regular savings opportunities, and the sales tax exemption can offset up to 6% of your energy efficiency upgrade costs.
Florida even offers solar PACE financing to some localities to afford upfront expenses. PACE loans are unique in that they don’t move with the homeowner. If you sell your home, the new owner can keep your equipment or cancel.
Beyond these benefits and the federal tax credit, installing solar energy increases your home’s value. It can also boost your curb appeal and attract potential buyers. To get a high-quality installation at a competitive price, work with professional solar energy installers.
Hire a Trusted Florida Solar Energy Provider
Even with the federal tax credit, a solar energy installation is a significant purchase for any Florida homeowner. You must weigh the credit amount, incentives, and benefits against your costs. An experienced solar energy installation company can help you make the right decision and invest in a long-lasting system.
If you want a long-lasting investment that can benefit your home for years to come, get in touch with PES Solar. We have more than 20 years of experience helping homeowners make smart solar energy decisions. Click here to learn more financial benefits of solar energy, and call PES Solar at 800-650-6519 to schedule your solar consultation.