To qualify for the solar panel tax credit, you need to meet the following eligibility requirements:
Eligibility Requirements for Solar Panel Tax Credit
1. Purchase and Ownership
- Purchase Requirements: You must purchase the solar panels with cash or a loan. Leasing or using a power purchase agreement (PPA) does not qualify you for the credit.
- Ownership: You must own the system to claim the tax credit.
2. Installation Period
The solar equipment must be installed between January 1, 2017, and December 31, 2034.
3. Installation Location
- The solar equipment must be installed at a residence within the United States, which can include a house, houseboat, mobile home, cooperative apartment, condominium, or a manufactured home that meets Federal Manufactured Home Construction and Safety Standards.
- It must be installed at your primary or secondary residence where you reside, and not at a rental property.
4. Qualifying Equipment
Eligible equipment includes solar panels, solar shingles, solar water heaters, residential wind turbines, geothermal heat pumps, fuel cells, and battery storage systems.
5. Original Installation
The solar equipment must be new and meet the requirement for original installation. You cannot claim the credit for used solar panels unless they are part of an addition to an existing system.
6. Taxable Income
You must have taxable income to claim the tax credit since it reduces your tax liability. If your tax liability is zero, you cannot immediately benefit from the credit, but you may carry it over to subsequent years.
Claiming the Credit
To claim the solar panel tax credit, you need to file IRS Form 5695, Residential Energy Credits, for the tax year the equipment is installed. The Residential Clean Energy Credit is worth 30% of the qualifying costs from 2022 to 2032.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-eligibility-requirements-for-the-solar-panel-tax-credit/
