As a follow-up to our October 4th blog post titled, “How the 30% Income Tax Credit Benefits You,” we were asked the question, “What happens if I make too much money?”
Your income does not affect the credit. If you invest in a qualified residential solar installation, and have a tax liability (owe money to the IRS), you are eligible to receive a 30% federal solar investment tax credit for the year the solar system was installed.
Even Better News
If you do not have enough tax liability the first year, the credit rolls into future tax years, and your taxes are reduced until the credit is used up.
People often wonder who benefits from our tax dollars and where does the money go? In this case, the tax dollars will go to you!
Electric Vehicle Purchases
Unlike a solar investment, the purchase of an electric vehicle does have tax-filing income limits. Some people are concerned the electric vehicle tax credit will disqualify them from receiving the solar installation tax credit. It does not. They are different tax credits.
IRS Form 5695-Residential Energy Credits
Be sure to complete and file the “Residential Energy Credits” form 5695 along with your tax return to take full advantage of the ITC. Confer with a tax advisor if you have questions or need assistance.
Give Southern View Energy a call at 678.833.5191 or email Info@SouthernViewEnergy.com to explore how solar can help curb your energy bills, provide backup power, and redirect your taxes back into your own pocket.