We are not tax professionals and we recommend talking to your CPA about the 30% solar tax credit, Tax Form 5695. What we can tell you is that our clients have had no problem claiming this tax credit since the very beginning. We intend this information to be resourceful for you in helping you make the transition to solar and save money in the process!

The solar tax credit is a deduction off what you owe, so you'll need to owe federal income tax in the US for this to apply. However, it applies to the entire cost of your system and 30% can lead to some serious savings. Take a look at the example calculation below:

TOTAL SYSTEM COST: $20,000
30% SOLAR TAX CREDIT: $6,000
NET-INVESTMENT: $20,000 - $6,000 = $14,000

The $6,000 is deducted from the taxes that you were going to pay at the end of the year depending on your federal income, say you owed $10,000. The $6,000 would be reduced from the $10,000 so you would only owe $4,000 and the deduction would lower your net investment for your solar.

Taxes follow a paper trail and because you are purchasing your entire system from Tiny Watts Solar you will have an itemized sales receipt for your tax records. Here is a link to a CPA tax professional, Heather Ryan who is very familiar with the tax credit and the lifestyle of solar freedom!

Click the link below for the updated article discussing the recent extension to the solar tax credit. If you have further tax specific questions, I would reach out to Heather directly on her site.