Federal tax credits are available for solar energy systems, including equipment that is necessary for solar power generation, but the specifics around solar trackers depend on their classification as part of the solar installation.
The Residential Clean Energy Credit, also known as the federal solar tax credit or investment tax credit (ITC), currently offers a credit of 30% of the cost of qualified solar property placed in service from January 1, 2022, through December 31, 2032, stepping down to 26% for 2033 and 22% for 2034.
This tax credit covers the cost of solar panels and associated equipment needed for the system to function. However, it does not typically cover structural work solely made to support panels; the distinction is important when considering equipment like solar trackers.
Regarding solar trackers:
- Solar trackers are devices that orient solar panels toward the sun to maximize energy capture. They are generally considered part of the solar energy system’s equipment.
- Because their purpose is directly related to enhancing the efficiency of the solar energy system, costs associated with solar trackers are usually eligible under the federal solar tax credit as part of the “solar energy equipment.”
- The IRS instructions and federal guidelines do not explicitly exclude solar trackers but do exclude purely structural components that are not integral to the solar energy generation.
Thus, if solar trackers are installed as part of a solar photovoltaic system, their costs are likely covered by the Residential Clean Energy Credit, allowing taxpayers to claim 30% of the equipment and installation costs on IRS Form 5695.
Summary:
| Aspect | Details |
|---|---|
| Tax Credit Name | Residential Clean Energy Credit (Solar Tax Credit) |
| Credit Amount | 30% for systems placed in service 2022-2032; reduces after |
| Eligible Equipment Cost | Includes solar panels, inverters, and associated equipment including solar trackers |
| Excluded Costs | Structural work not integral to energy production |
| How to Claim | IRS Form 5695 |
In conclusion, federal tax credits are available for solar trackers as part of a solar energy system since they are considered qualified equipment that enhances solar power generation.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/are-there-any-federal-tax-credits-available-for-solar-trackers/
