In addition to offering a green source of providing utilities to your home, solar panels also are offer a sizable tax benefit to the homeowner. The federal government gives a sizable tax break and many state governments have tax benefit programs in place.
To apply for credits on products placed in service, file the 2011 IRS Form 5695 and include it with your 2011 taxes when filed with the IRS on or before April 15, 2012. On your 1040 form the residential energy tax credit is reported and claimed on line 52 using figures from Form 5695. Save all associated receipts and also the Manufacturer’s Certification Statement for your own records. Submit IRS Form 5695 with your taxes.
Many state government also have tax credits available to qualifying residences and homes. There are differing qualifications from the federal credits so ask the solar installers in your area for information on credits and the application process. Most installers or solar sales companies will have this information and can help you with the qualification process Take the time to research the state tax website for details as well.
- Going Green Can Save On Utility Bills, Taxes In New York (newyork.cbslocal.com)
- The Groupon of solar power (money.cnn.com)
Josh T. is an avid reader and in his spare time he helps people with tax questions. When he is not helping others, he works for a tax resolution firm.